PERIODIC LABOUR FORCE SURVEY (PLFS) - REPORTS AND INDICES

News: Unemployment rate declined, says Centre’s survey

 

What's in the news?

       The latest findings from the Periodic Labour Force Survey (PLFS), conducted by the National Sample Survey Office (NSSO), reveal a decrease in India’s unemployment rate for the period between April and June 2023.

       This encouraging trend is accompanied by improvements in the Labour Force Participation Rate (LFPR) and the Worker-Population Ratio (WPR), signifying positive shifts in the country’s labour market.

 

Periodic Labour Force Survey:

       The National Statistical Organisation (NSO) launched PLFS in April 2017.

 

Objective:

       To collect comprehensive labour market data in India.

 

Released by:

·         NSO, Ministry of Statistics and Programme Implementation (MoSPI), Government of India.

 

Age Group - The survey focused on individuals aged 15 years and above.

 

Features:

       It released data about the unemployment rate for both rural and urban annually.

       On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators.

       Unemployment rate: The unemployment rate is defined as the percentage of unemployed persons in the labour force.

       Worker Population Ratio: WPR is defined as the percentage of employed persons in the population.

       Labor Force Participation Rate: The percentage of persons in the labour force (that is, working or seeking work or available for work) in the population.

       Distribution of workers by broad status in employment and industry of work in CWS.

       The present Quarterly Bulletin is the sixteenth in the series for the quarter of July–September 2022.

 

Two PLFS approaches:

1. Usual Status (US):

       In this approach, the survey ascertains whether a person had been employed for enough days in 365 days preceding the survey.

2. Current Weekly Status (CWS):

       In this, the survey tries to figure out whether a person was adequately employed in the seven days preceding the survey.

 

Categories:

       Employment status, unemployment rate, sector-wise employment, income, demographics, and more.

 

Methodology:

       Sample survey approach with data collected from households and individuals through a scientific sampling process.

 

Significance:

       Informs government policies related to employment, labour market interventions and economic planning.

 

Findings of the Report:

1. Improvements in Urban Labour Force Participation Rate (LFPR):

       The LFPR in urban areas exhibited growth, rising from 47.5% in April-June 2022 to 48.8% in the corresponding months of 2023 for individuals aged 15 years and above.

2. Gender Disparities: 

       While the LFPR remained stable at approximately 73.5% for males during this period, it notably increased for females, climbing from 20.9% to 23.2%.

3. Enhanced Worker-Population Ratio (WPR):

       In urban areas, the WPR increased from 43.9% in April-June 2022 to 45.5% during the same period in 2023 for individuals aged 15 years and above.

4. Gender-Specific Improvements: 

       For males, the WPR progressed from 68.3% to 69.2%, and for females, it surged from 18.9% to 21.1% over this timeframe.

5. Decrease in Unemployment Rate:

       The PLFS reported a diminishing trend in the Unemployment Rate (UR) for individuals aged 15 years and above in urban areas.

       It decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023 for urban areas.

       For males, the UR dropped from 7.1% to 5.9%, while for females, it decreased from 9.5% to 9.1% during this period.

 

Comparative Analysis:

1. Positive Trends: 

       The report highlights improvements in key labour market indicators in urban areas when compared to the pre-pandemic period (April-June 2018 to October-December 2019).

2. LFPR Improvement: 

       The LFPR ranged from 46.2% to 47.8% during the pre-pandemic period and has now reached 48.8%.

3. WPR Enhancement: 

       Pre-pandemic WPR figures ranged from 41.8% to 44.1%, while the current WPR stands at 45.5%.

4. Lower UR: 

       Unemployment rates during the pre-pandemic period fluctuated between 7.8% and 9.7%, with the latest survey reporting a lower UR of 6.6%. This rate is deemed favourable compared to the unemployment rates observed in the quarters preceding the pandemic.