Unemployment drops to a three-month low in July, female participation rises

Unemployment rate declines to a three month low

India’s unemployment rate fell to a three-month low of 5.2 percent in July, compared with 5.6 percent in June, according to official data released on August 18. The latest reading also marks an improvement over the previous quarter when the unemployment rate stood at 5.4 percent.

Female Workforce Gains Ground

The decline was sharper among women with female unemployment down to 5.1 percent in July from 5.6 percent a month ago, outpacing the drop in male unemployment of 5.3 percent compared with 5.6 percent a month ago.

Female labour force participation also strengthened, climbing back above the 25 percent mark to reach 25.5 percent in July compared with 24.5 percent in June.

Composition of Workforce

Self-employment continues to dominate India’s labour market, accounting for 54.4 percent of the total workforce. Within this segment, contributing family workers made up nearly a quarter.

Regular wage and salaried workers constituted 25.5 percent of the workforce, while casual labourers accounted for a fifth.

Sectoral Distribution

Agriculture remained the largest employer, with 40 percent of workers engaged in the sector. Services followed at around one-third of the workforce, while secondary sector employment stood at 26.6 percent.