Telangana performs well on labour market indicators: Socio Economic Outlook

Telangana's Labour Force Participation Rate (LFPR) was 66.5 per cent, higher than the national average of 61.6 per cent, indicating a high level of confidence in the State's economy

Hyderabad: Telangana has showcased notable performance in labour market indicators, as per the latest Socio Economic Outlook for 2024-25, reflecting a strong economy and dynamic workforce.

Telangana’s Labour Force Participation Rate (LFPR) was 66.5 per cent, higher than the national average of 61.6 per cent, indicating a high level of confidence in the State’s economy.

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LFPR along with the Worker Population Ratio (WPR) and the Unemployment Rate (UR) are key indicators of steady rise in employment opportunities and a strong economy. According to the Socio Economic Outlook, Telangana’s performance on all of these indicators has been considerably good.

According to the Periodic Labour Force Survey, the LFPR measures the percentage of the working-age population (15-59 years) either employed or seeking employment. In 2022-23, Telangana’s LFPR was 66.5 per cent, higher than the national average of 61.6 per cent.

Telangana has a significantly higher female LFPR at 50.4 per cent, compared to the national average of 39.8 per cent. In rural areas, the female LFPR is even higher at 62.4 per cent, surpassing the national rural average of 44.3 percentage points.

The male LFPR is at 81.8 per cent for Telangana, slightly lower than the national level of 83.2 per cent.

Similarly, the WPR which indicates percentages of people employed, was 63.4 per cent in Telangana, above national average of 59.5 per cent. While the rural WPR was 8.5 percentage points higher than the national rural WPR, the urban WPR was slightly lower by 0.9 percentage points.

The female WPR in Telangana stood at 48.4 per cent, significantly higher than the national average of 38.5 per cent, with a notable 17.6 percentage point difference in rural areas.

Despite high participation rates, Telangana faces marginally higher unemployment rate at 4.6 per cent, compared to the national average of 3.4 per cent.

For 2022-23, the State’s unemployment rate was elevated across both rural and urban areas and among both genders. While the rural unemployment rate was 3 per cent in Telangana against national average of 2.7 per cent, the urban unemployment rate was significantly higher at 8 per cent, compared to national average of 5.7 per cent.

In Telangana, agriculture remains the largest employer, engaging 47.3 per cent of all working adults. The services sector and industries sector follow, employing 33 per cent and 19.7 per cent of the workforce, respectively.