Trends In India’s Unemployment Rate: 2008 To 2024

Trends in India’s Unemployment Rate: 2008 to 2024

India is the second most populous nation in the world after China. With a diverse range of workforce, there are fluctuations in the rate of unemployment which contribute to significant change in the growth and development of the nation. It is a critical issue which is challenging the economy of the country.

In the present scenario, there is a significant decline in unemployment rate of our nation. As per National Sample Survey Office (NSSO), there has been a significant decline of 6.8% during January-March 2023 for the individuals aged 15 years and above. Last year, the unemployment rate of the nation was 8.2%. This significant change will affect the job market along with all the complexities of the landscape of economy. There are various policies which is fostering the growth of nation.

In this blog, we will discuss the major trends in the unemployment rate of India from 2008 to 2024.

Present-day unemployment rate in India

There is a sharp decrease in the unemployment rate of India in 2024. As per Centre for Monitoring Indian Economy (CMIE), the current unemployment rate in India in 6.8%. There is a significant decrease of 1.9% as per the data of last year December 2023.

In the past few months, the unemployment rate is recorded to be the lowest. There is an increase in unemployment among youth aged between 20-30 years. Unemployment among people aged between 20-24 years is increased to 44.49%. Earlier, the unemployment among youth of age 20-24 years was 43.65%. In the very similar manner, the unemployment rate among the youth of age 25-29 years is increased to 14.33%, which earlier was 13.35% in the last year.

The unemployment rate of people aged 15 years and above was 6.7% in urban areas in January-March 2024. The unemployment rate of females of age 15 and above is reported as 8.5% in urban areas in January-March 2024 which earlier was 9.2% a year ago in the same quarter. It was 9.1%, 8.6% and 8.6% in the second, third and fourth respectively.

There is also an increase of 57.3% in the number of people engaged in self-employment (including small business as well as unpaid household work). Earlier the percentage for the same was 55.8%. This shows the clear picture of Mudra loan distribution, an increased number of tax returns and startup registration. Additionally, farm production has risen which contribute not only to the growth of economy but also increases the demand of labour in the agricultural sector.

The unemployment rate among males is risen to 6.1% in January-March 2024 which earlier was 6% a year ago. In the second quarter of 2023 i.e. April-June, it was 5.9%, 6% in July-September 2023 and 5.8% in October-December 2023.

It is reported that the Labour Force Participation Rate in CWS in the urban areas is increased to 50.2% in the first quarter of the year 2024 for the people aged 15 years and above, which earlier was 48.5% in the same quarter a year ago. In April-June 2023, it was 48.8%, 49.3% and 49.2% in July-September 2023 and October-December 2023 respectively.

Ways to Calculate Unemployment Rate in India

Here is the formula to calculate the current unemployment rate in India:

Unemployment Rate = Number of Unemployed Persons / Civilian Labor Force

Or, Unemployment Rate = Number of Unemployed Persons / (Number of Employed Persons + Number of Unemployed Persons)

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