Persons categorized as working (employed) and also those who are seeking or available for work (unemployed) together constitute labour force.
The labour force participation Rate (LFPR) is defined as the number of persons in the labour force per 1000 persons.
Labour Force Participation rates both rural and urban areas of Andhra Pradesh were higher when compared with all India.
Persons who are engaged in any economic activity constitute the work force.
The number of persons employed per 1000 persons is called Work Force Participation rate (WFPR).
The work force participation rate per 1000 persons is based on current daily status.
As per the current daily status, a person is considered working (employed) for the entire day if he/she had worked for 4 hours or more during the day.
Work force participation rates in Andhra Pradesh among males in rural areas have increased, whereas that of females has decreased in 2009-10 when compared with the rates in 2004-05 while in urban areas it has decreased for both males and females.
Work force participation rates in general are high in Andhra Pradesh when compared with all India.
Around 94% of the workers in A.P. are in the unorganized sector and in fact, the state reports high incidence of employment in the unorganized/informal economy.
Andhra Pradesh has registered an annual compound growth of 1.70% in employment between 2004-05 and 2009-10 - up from 0.70% between 1999- 2000 and 2004-05, All India’s employment
growth slipped from 2.50% to 2.10% during the same reference period.
The National Sample Survey Office (NSSO) provides the Unemployment estimates on the basis of the Quinquennial surveys.
Persons are considered as unemployed, if he/she was not working, but was either seeking or was available for work for a relatively longer time during the reference period.
Unemployment rate is defined as the number of persons unemployed per 1000 persons in the labour force.
The rural and urban unemployment rates in Andhra Pradesh as well as All India have increased from 1993- 94 to 1999-2000.
However, from 1999-2000 to 2004-05, the rural and urban unemployment rates in Andhra Pradesh have decreased.
The rate of decline in respect of urban unemployment (from 39 to 36) was sharper as compared to that of the rural unemployment (from 8 to 7).
The rural Unemployment rate has however increased (5 points) from 7 in 2004-05 to 12 in 2009-10 where as the urban unemployment rate has decreased by same quantum (5 points) from 36 to 31.