RAS question
Consider the following statements about the PLFS Q2 FY26 data: 1. Rural unemployment fell from 4.8% to 4.4%. 2. Urban unemployment declined from 6.9% to 6.8%. 3. Overall Labour Force Participation Rate (LFPR) increased to 55.1%. Which of the statements given above is/are correct?
Correct answer: (A) 1 and 3 only.
In the PLFS July-September 2025 quarterly data, rural unemployment fell from 4.8% to 4.4% and the overall LFPR rose to 55.1%, while urban unemployment increased from 6.8% to 6.9%.
Explanation
The PLFS quarterly press note for July-September 2025 reports that the unemployment rate for persons aged 15 years and above in rural areas declined from 4.8% in April-June 2025 to 4.4% in July-September 2025, and that the overall Labour Force Participation Rate rose marginally from 55.0% to 55.1%. Urban unemployment did not decline; it increased from 6.8% to 6.9%. Rural and urban labour-market movements diverged in this quarter: rural unemployment eased, but urban unemployment edged up. Therefore, only statements 1 and 3 match the PLFS movements.
Why the other options are wrong
- (B) Urban unemployment rose from 6.8% to 6.9%, not declined from 6.9% to 6.8%.
- (C) Rural unemployment declined from 4.8% to 4.4%, while urban unemployment increased rather than declined.
- (D) Rural unemployment declined, and the overall LFPR also increased to 55.1%.
Concept
PLFS labour-market interpretation depends on reading LFPR and unemployment rate under the Current Weekly Status framework. RAS preparation requires precise reading of official economic data rather than reliance on a headline trend.