Unemployment rate dips to 6.4% in Oct-Dec 2024, labour market sees steady gains: NSO data

The labour force participation rate (LFPR) in urban areas for individuals aged 15 years and above rose to 50.4% in the October-December 2024 quarter from 49.9% in the corresponding period a year ago, according to government data.

The latest Periodic Labour Force Survey (PLFS), released by the National Statistics Office (NSO) on Tuesday, showed that the labour force participation rate among males in urban areas increased to 75.4% in the October-December 2024 quarter from 74.1% in the same period last year, indicating an overall upward trend.

For females in urban areas, the LFPR saw a marginal increase to 25.2% from 25.0% during the same period.

The worker population ratio (WPR) in urban areas also recorded an improvement, rising to 47.2% in the October-December 2024 quarter from 46.6% a year ago. The WPR for males increased to 70.9% from 69.8%, while for females, it remained relatively unchanged.

Meanwhile, the unemployment rate in urban areas saw a slight decline to 6.4% in the October-December 2024 quarter from 6.5% in the corresponding period of 2023. The unemployment rate for males remained steady at 5.8%, whereas for females, it fell to 8.1% from 8.6% a year ago.

The PLFS was launched by the NSO in April 2017 to provide key employment and unemployment indicators in urban areas at a quarterly frequency. The latest survey covered 5,742 urban sampling units, surveying 45,074 urban households and 1,70,487 individuals.

The survey defines the labour force participation rate as the percentage of individuals either working or actively seeking work, the worker population ratio as the percentage of employed individuals in the population, and the unemployment rate as the proportion of unemployed persons among the labour force.

The findings indicate a continued recovery in labour market conditions, particularly in urban areas, with rising participation rates and a marginal decline in unemployment levels.