India’s unemployment rate slipped to a four-month low of 5.1 percent in August from 5.2 percent in July, the latest Periodic Labour Force Survey (PLFS), released by the statistics and programme implementation ministry on September 15, shows.
The decline was broad-based, with male unemployment easing to 5 percent, the lowest in five months. Rural male unemployment fell sharply to 4.5 percent, while in urban areas, it dropped to 5.9 percent from 6.6 percent in the previous month.
Female participation also strengthened for a second straight month. The female labour force participation rate rose to 33.7 percent from 33.3 percent in July, indicating more women either joining the workforce or expressed willingness to work.
The Worker Population Ratio (WPR) for women rose to 32 percent in August from 31.6 percent in July and 30.2 percent in June. Gains were visible in both rural and urban areas, where female WPRs climbed to 35.9 percent and 23.8 percent, respectively.
The data comes against the backdrop of strong economic momentum. India’s GDP expanded to a five-quarter high of 7.8 percent in April–June, supported by consumption and services. Lower unemployment rates, coupled with GST cuts from September 22, are expected to provide a further boost to demand during the festival season.
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