
Unemployment is a big problem in India that affects the country’s economy. India has a huge population with a diverse workforce, so changes in the unemployment rate have a big impact on the country’s growth. In this article, we will have a look at the latest unemployment rate in India and we will also learn how unemployment rate is calculated.
Recent data shows a bit of good news: India’s unemployment rate has gone down recently. According to the National Sample Survey Office (NSSO), the unemployment rate for people aged 15 and above in cities decreased to 6.8 percent from January to March 2023, down from 8.2 percent the previous year. This positive change suggests things might be getting better in the job market despite the challenges in the economy.
Unemployment Rate in India
Year | Unemployment Rate (%) |
---|---|
2024 | 6.57 (January 2024) |
2023 | 8.003 |
2022 | 7.33 |
2021 | 5.98 |
2020 | 8.00 |
2019 | 5.27 |
2018 | 5.33 |
2017 | 5.36 |
2016 | 5.42 |
2015 | 5.44 |
2014 | 5.44 |
2013 | 5.42 |
2012 | 5.41 |
2011 | 5.43 |
2010 | 5.55 |
2009 | 5.54 |
2008 | 5.41 |
How is the Unemployment Rate Calculated?
The formula used to calculate the current unemployment rate in India is as follows:
- Unemployment Rate = Number of Unemployed Persons / Civilian Labor Force
Alternatively, it can be calculated as:
- Unemployment Rate = Number of Unemployed Persons / (Number of Employed Persons + Number of Unemployed Persons)
To be classified as unemployed, an individual must meet specific criteria:
- They must be at least 16 years old and available to work full-time in the last four weeks.
- They should be actively seeking employment during this period.
- Some exceptions include individuals who are temporarily laid off and actively looking to rejoin their previous jobs.
In January 2024, India’s unemployment rate experienced a significant drop, reaching 6.8 percent according to the Centre for Monitoring Indian Economy (CMIE), an independent research organization. This marks a notable decline of 1.9 percent from December 2023, when the rate was 8.7 percent.
The January 2024 unemployment rate is the lowest recorded in the past 16 months. However, there has been an increase in youth unemployment, particularly among those aged 20 to 30, during the October-December quarter of 2023. Unemployment among individuals aged 20 to 24 rose to 44.49 percent, up from 43.65 percent in the July-September quarter. Similarly, unemployment among individuals aged 25 to 29 increased to 14.33 percent in the October-December quarter of 2023, compared to 13.35 percent in the previous quarter.