National Statistical Office (NSO) released its data for the April-June quarter of 2021, according to which the unemployment rate has hit a new rise after the second wave of Covid-19 pandemic hit people’s lives.
As per the data released on Monday, the Unemployment rate in the urban population is now at 12.6% in the April-June quarter, quite high from the January-March period (9.3%). The Labour Force Participation Rate (LPFR) of women declined from 21.2% to 20.1% in the time of three months in the previous quarter. With this, the overall LPFR fell from 47.5% in the January-March quarter to 46.8% in the April-June quarter of 2021.
The data was recorded among the 15 years or above category from all over the country. Despite the unemployment rate rising to double-digit, it stayed far below the 20.8% recorded during the first wave of the Covid-19 pandemic.
Within the female working population, the rate of unemployment was recorded to be 11.8% in the quarter of January-March, whereas it rose to 14.3% in the next three months quarter, i.e., April-June. The same rise was seen for the working men population, where the January-March quarter showed an unemployment rate of 8.6%, rising to 12.2% in the April-June quarter of 2021.
This graph in the April-June quarter in the unemployment rate is the result of disruption in the economy caused by the coronavirus pandemic. Whilst, there was a rise in the unemployment rate during the three months, the wide view of the analysis shows a secular improvement in the NSO data since the first wave of Covid-19 hit the country. In some of the states, an improvement in the LPFR has been seen, whilst the overall LPFR showed to be in a declining period.
The percentage of employed persons for 15 years or above, otherwise also known as worker population rate, has seen a drastic decline from the previous quarter, i.e., a drop from 43.1% to 40.9%. However, the population of self-employed persons for 15 years or above has risen to 40.7% in the April-June quarter, from the 39.3% of the previous quarter’s rate. The rise of self-employment and decline in working persons reflects the pandemic-driven job losses, compiled with lockdown triggered sacking.
The worker population rate for men was at 64.2%, dropping down from 67.2%n the three months, whereas, for the women population, the drop was from 18.7% to 17.2%. The NSO has stated that because of the pandemic, the data gathering for PLFS (Periodic Labour Force Survey) was stopped in most parts of India. The PLFS is used to estimate employment and unemployment indicators in three-month quarters for urban areas only.
