New PLFS Data Highlights Urban-Rural Job Divide
Unemployment rate at 5.1% in April
Context: India’s unemployment rate stood at 5.1% in April 2025 for individuals aged 15 years and above, according to the first monthly bulletin of the revamped Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
Urban vs Rural Unemployment Trends
- Divide: While the urban unemployment rate was 6.5%, rural areas recorded a lower rate at 4.5%.
- Gender Disparities: Female unemployment in urban areas was significantly higher at 8.7%, compared to 5.8% for males.
- In rural India, however, the trend reversed: female unemployment stood at 3.9%, lower than 4.9% for males.
- Cause: Experts suggest this contrast underscores urban job creation pressures and varying employment opportunities across regions and gender lines.
Youth Unemployment Remains a Concern
- Youth unemployment—covering those aged 15–29 years—was notably high at 13.8% nationally, rising to 17.2% in urban areas and at 12.3% in rural regions.
- Gender-wise, female youth unemployment was higher overall at 14.4% compared to 13.6% for males.
- In urban India, this gap widened further, with female youth unemployment at 23.7% versus 15.0% for males.
- In contrast, rural areas saw female youth unemployment at 10.7%, lower than 13.0% for rural males.
- Analysts attribute this to greater educational participation among urban females and limited urban employment opportunities for women.
Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR)
- India’s Labour Force Participation Rate (LFPR) for persons aged 15 and above stood at 55.6% in April.
- It was higher in rural areas (58.0%) than in urban areas (50.7%).
- A significant gender gap persists, with female LFPR at only 34.2% compared to 77.7% for males.
- Rural women participated more actively (38.2%) than their urban counterparts (25.7%).
The Worker Population Ratio (WPR), which reflects the proportion of employed people in the population, was 52.8% overall.
Labour Force Participation Rate (LFPR)
The Labour Force Participation Rate (LFPR) is the percentage of the working-age population (typically ages 15–64) that is either employed or actively seeking employment. It is a key indicator of the active workforce in an economy.
Worker Population Ratio (WPR)
The Worker Population Ratio (WPR) is the percentage of the population (usually age 15 and above) that is actually employed. It measures the proportion of people who are working out of the total population in that age group.
- Urban WPR was 47.4%, while rural WPR stood at 55.4%. Among females, the WPR was 23.5% in urban areas and 36.8% in rural areas, compared to 71% for urban males and 75.1% for rural males.
Methodology and Survey Redesign
- The April data comes from a revamped PLFS methodology introduced in January 2025. The new design includes:
- Monthly rotational panel surveys covering 3.80 lakh individuals and 89,434 households
- Households are surveyed four times over four months
- Enhanced questionnaire capturing education, vocational training credentials, land ownership, and non-wage income
- A shift to calendar year-based reporting from the earlier July-June cycle
