Apr-Jun unemployment at 5.4%, highest in 4 quarters

Why in the News

The unemployment rate for persons aged 15 years and above rose to 5.4% in April-June 2026, a four-quarter high, according to the Periodic Labour Force Survey (PLFS). Youth and urban women experienced the sharpest increase.

What is PLFS?

• PLFS: Periodic Labour Force Survey.
• Conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
• Launched in 2017.
• Replaced the earlier quinquennial Employment-Unemployment Surveys.
• Provides regular employment and unemployment estimates.

What did April-June 2026 PLFS Show?

• Overall: 5.4% from 5.0% in the previous quarter.
• Rural: 4.8% from 4.3%.
• Urban: 6.7% from 6.6%.
• Female: 5.7% from 5.3%.
• Male: 5.3% from 4.8%.
• Employed population: About 566 million, including 402 million males and 164 million females.

Where is Joblessness Concentrated?

• Youth (15-29 years): 15.9%, the highest in the current PLFS series.
• Female youth: 19.6%, a series high.
• Urban females: 8.7% compared with 6.1% for urban males.
• Rural females: 4.7%, close to rural males at 4.8%.
  • Key takeaway: The headline unemployment rate masks much higher youth and urban female unemployment, pointing to problems of job quality, skills and labour-market absorption.

About Unemployment

• Unemployment refers to people in the labour force who are willing and able to work but do not have work.

• Key Labour Indicators
  • Labour Force Participation Rate (LFPR): Labour force as a percentage of the working-age population.
  • Worker Population Ratio (WPR): Employed persons as a percentage of the population.
  • Unemployment Rate (UR): Unemployed persons as a percentage of the labour force.

Types of Unemployment

1. Structural: Skill or location mismatch with available jobs.
2. Frictional: Temporary unemployment while changing jobs.
3. Cyclical: Caused by economic downturns.
4. Disguised: More workers employed than required, common in agriculture.
5. Seasonal: Employment varies with seasons, especially agriculture.

Back2Basics: PLFS

• Full form: Periodic Labour Force Survey.
• Conducted by: National Statistical Office (NSO).
• Ministry: Ministry of Statistics and Programme Implementation (MoSPI).
• Launched: 2017.
• Coverage: Rural and urban India.
• Key measures: Usual Status and Current Weekly Status (CWS).
• Youth: Persons aged 15-29 years.

Government Initiatives

• MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act, providing up to 100 days of rural wage employment.
• PMKVY: Pradhan Mantri Kaushal Vikas Yojana, promoting skill development.
• Skill India Mission: Develops a skilled workforce.
• Startup India & Stand-Up India: Promote entrepreneurship.
• ELI: Employment Linked Incentive Scheme, encouraging formal employment creation.

“[2023, GS3, 15 marks] Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.”

[2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements :

1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3