Urban Unemployment Falls to 6.4% in Q2 Amid Rising Female Workforce Participation

Union ministry of statistics and programme implementation’s (MoSPI) data showed that the unemployment rate (UR) in the urban areas has dipped from 6.6 per cent in the second quarter of the financial year 2023-24 to 6.4 per cent in Q2 FY25. According to the periodic labour force survey (PLFS) for Q2 FY25 released on Monday, the UR had declined to 6.6 per cent in Q1 FY25 from a four-quarter high of 6.7 per cent in Q4 FY24. 

While the joblessness rate for females came down significantly from 9 per cent in Q1 FY25 to 8.4 per cent in Q2 FY25, the decrease in UR for males remained marginal from 5.8 per cent in Q1 FY25 to 5.7 per cent in Q2 FY25. 

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As per the survey, the labour force participation rate in urban areas has increased from 49.3 per cent in the second quarter of FY2024 to 50.4 per cent during the same period in FY25. 

The ministry’s survey showed that the urban UR for the youth between the age group of 15-29 years decreased from 17.3 per cent in Q2 FY24 to 15.9 per cent in Q2 FY25. The UR for the same category dipped from 16.8 per cent in Q1 FY25 to 15.9 in Q2 FY25. 

The data also revealed a significant decrease in the urban share of agricultural employment. According to the survey, urban employment in agriculture and allied activities has come down from 6.1 per cent in Q2 FY24 to 5.4 per cent Q2 FY25. 

The share of the urban population employed in the manufacturing and services sectors remained largely the same in Q2 FY25 as compared to Q2 FY24. The share of the secondary sector declined marginally from 32.4 per cent in Q2 FY24 to 32.3 per cent in Q2 FY25. While compared to Q1 FY25, the share of the manufacturing sector has increased from 32.1 per cent to 32.3 per cent in Q2 FY25. 

Meanwhile, the contribution of urban employment in the tertiary sector increased slightly from 61.5 per cent in Q2 FY24 to 62.3 per cent in Q2 FY25. However, the share in the service sector declined from 62.4 per cent in Q1 FY25 to 62.3 in Q2 FY25. 

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