Summary
This technical report presents an analysis of India's unemployment rate as indicated by the sixth annual Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO). The report outlines a significant decline in the unemployment rate from 6.1% in FY18 to 3.2% in FY23, alongside an increase in the Labour Force Participation Rate (LFPR) from 36.9% to 42.4%. It details the rise in self-employment, noting that the share of self-employed individuals increased from 52.2% to 57.3% during the same period. The report also discusses the youth unemployment rate, which decreased from 12.9% to 10%, and addresses common misconceptions regarding these statistics. Additionally, it highlights the methodological differences between the PLFS and previous surveys, emphasizing the impact of educational attainment on employment metrics. The report concludes by suggesting that the PLFS methodology may require recalibration to accurately reflect the changing dynamics of the labor market in India.
