The latest findings from the Labour Force Survey (LFS) annual bulletin reveal a concerning trend as Sri Lanka's labor force participation rate plummeted to a new low in 2023.
The participation rate, which measures the percentage of the population either working or actively seeking employment, dropped to 48.6 percent, down from 49.8 percent in 2022, marking the third consecutive year it has remained below the 50 percent threshold.
The bulletin further detailed a gendered impact, with the male labor force participation rate declining to 68.6 percent and the female rate falling to 31.3 percent in 2023.
This decrease translated to a total employed population decline of 137,821 individuals, with the service sector experiencing a modest increase in employment while both agriculture and industry sectors saw declines.Despite an unchanged overall unemployment rate of 4.7 percent, there was a notable increase in female unemployment to 7 percent in 2023, contrasting with a slight decline in male unemployment to 3.6 percent.
Urban areas recorded the highest unemployment rate at 7.4 percent, followed by rural areas at 7 percent, and the estate sector at 4.8 percent.Youth unemployment continued to surge, climbing from 16.2 percent in 2022 to 17 percent in 2023.
However, there was a positive uptick in full-time employment, with 62.1 percent of the workforce reporting working 40 hours or more weekly, up from 60.3 percent the previous year.
The Labour Force Survey, conducted by the Department of Census and Statistics, serves as a vital tool for monitoring employment trends and shaping policy responses to address labor market challenges.
