The unemployment rate for all ages in urban areas rose to 10.3 per cent in October-December 2020 as compared to 7.9 per cent in the corresponding months a year earlier, a periodic labour force survey by the National Statistical Office has said.
The figure, however, is significantly lower than the 20.8% estimated during April-June last year, when the impact of the national lockdown was at its peak, and 13.2% in the July-September quarter.
Labour force refers to the part of the population that supplies or offers to supply labour for the production of goods and services and therefore, includes both the employed and unemployed.
NSO launched PLFS in April 2017 on the basis of which a quarterly bulletin is brought out with estimates of labour force indicators namely UR, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by broad status in employment and industry of work in Current Weekly Status (CWS).
The estimates of unemployed persons in CWS give an average picture of unemployment over seven days during the survey period.
In the CWS approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.
Jammu & Kashmir had the highest unemployment rate of 17.8% during the period, followed by Kerala at 16.7% and Jharkhand at 16%. Gujarat had the lowest unemployment rate among states at 4%, lower than 4.5% in the previous quarter. Twelve states recorded double-digit unemployment rates during this period, compared with 22 states in the April-June quarter of 2020. Eight states had recorded double-digit unemployment in the October-December quarter of 2019-20.