India's urban unemployment rate declined marginally to 6.6 percent in the first quarter of FY25 from 6.7 percent in the previous quarter, results of a government survey released on August 16 showed.

Unemployment rate remained unchanged from the previous year when growth had risen to 8.2 percent, according to periodic labour force survey released by ministry of statistics and programme implementation.

Male unemployment reduced to 5.8 percent compared with 6.1 percent in the previous quarter. However, female unemployment rose doing this period to a four quarter high of 9 percent.

Female unemployment was a high 9.1 percent in Q1FY24.

The labour force participation rate for women also declined to 25.2 percent in Q1FY25 from 25.6 percent in the previous month, but remained above the 25 percent mark breached three quarters ago.

Male labour force participation, on the other hand, rose to 74.7 percent from 74.4 percent in the last quarter of FY24.

More people in regular jobs

One of the good things for the economy was also the rise in participation of regular wage or salaried work, which indicates high paying employment.

The proportion of people employed in regular wage/salaried work rose to 49 percent in the April-June quarter of FY25--a four quarter high--rising from 48.7 percent in the previosu quarter.

While the proportion of men involved in regular salaried work reduced marginally to 47.4 percent from 47.5 percent, female unemployment rose 1.7 percentage points to 54 percent in Q1FY25.

Fewer women are now self employed than in the last four quarters.

Employment in tertiary and manufacturing sector was also at highest levels, with workforce in tertiary sector employment hitting a 12 quarter high of 62.4 percent.

The rise was primarily led by women with higher proportion women employed in tertiary fields at 64.2 percent compared with 63.4 percent in the previous quarter and 63.9 percent in Q1FY24.

The government has been considering a revamp of PLFS, with rural employment likely to be made available quarterly from September and the ministry transitioning to monthly numbers.

The better employment numbers and higher salaried work participation is also likely to reflect in growth numbers, which will be released on August 30.