Recognising the significance of having labor force data available more frequently, the National Sample Survey Office (NSSO) introduced the Periodic Labour Force Survey (PLFS) in April 2017. This initiative aims to ensure timely and accurate information on the workforce, enhancing the quality and accessibility of data for informed decision-making.
Objectives
- The objective is to calculate key employment metrics such as Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate.
- These calculations are targeted for urban areas only.
- The duration for these calculations is set for every three months.
- The measurements will be based on the ‘Current Weekly Status’ (CWS).
- Annually, these employment and unemployment indicators will also be calculated for both rural and urban areas.
- The annual estimates will be measured in both ‘Usual Status’ (ps+ss) and ‘Current Weekly Status’ (CWS).
- The release of six Annual Reports provides estimates of key employment and unemployment parameters in both rural and urban areas. These reports cover usual status (ps+ss) and current weekly status (CWS). The data used for these reports was collected in PLFS during the periods of July 2017 – June 2018, July 2018 – June 2019, July 2019 – June 2020, July 2020 – June 2021, July 2021 – June 2022, and July 2022 – June 2023.
Significance Of PLFS
- The National Sample Survey Office (NSSO) conducts the annual PLFS. This is a successor to the quinquennial Employment-Unemployment Surveys.
- The main aim of the PLFS is to monitor the employment state in the country.
- The PLFS offers data on numerous metrics to assist policymakers.
- These metrics include the percentage of people seeking work, those unable to secure employment, and the gender disparities in employment and wages.
- The survey also offers insights into the distribution of workers across different sectors, such as the percentage working in agriculture.
- It records details about the nature of people’s work, including the number of casual laborers, self-employed individuals, and those with regular salaried jobs.
Sample Design Of The Latest PLFS
- The design used in urban areas is a rotational panel sampling design.
- Each selected urban household is visited four times, beginning with a ‘First Visit Schedule’, followed by three periodic ‘Revisit Schedules’.
- In urban areas, panel samples in each stratum constitute two independent sub-samples.
- The rotation scheme ensures a 75% match of first-stage sampling units (FSUs) between consecutive visits.
- No revisits were planned in rural samples.
- For rural areas, samples are drawn randomly in the form of two independent sub-samples within each stratum/sub-stratum.
- In rural areas, 25% FSUs of annual allocation are covered in each quarter of the survey period.
Conceptual Framework Of Key Employment and Unemployment Indicators
The Periodic Labour Force Survey (PLFS) provides estimates of crucial employment and unemployment indicators, such as the Labour Force Participation Rates (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). These indicators, along with the definitions of ‘Usual Status’ and ‘Current Weekly Status’, play a vital role in understanding the dynamics of the workforce.
- Labour Force Participation Rate (LFPR): The labour force participation rate (LFPR) represents the proportion of individuals who are either employed, actively seeking employment, or available for work within the population.
- Worker Population Ratio (WPR): The Workforce Participation Rate (WPR) refers to the proportion of employed individuals within a given population.
- Unemployment Rate (UR): The unemployment rate (UR) is calculated as the proportion of individuals who are unemployed within the labor force.
- Activity Status- Usual Status: A person’s activity status is determined by their pursuits during a specified reference period. When this reference period spans the last 365 days leading up to the survey date, it is referred to as the person’s usual activity status.
- Activity Status- Current Weekly Status (CWS): The current weekly status (CWS) of an individual refers to their activity level determined by considering the preceding 7 days leading up to the survey date. This metric provides insights into the person’s recent engagement and is used to assess their current situation.
- Principal activity status (ps) – The usual principal activity status of a person is determined based on the activity in which they spent a significant amount of time (major time criterion) during the 365 days prior to the survey date.
- Subsidiary economic activity status (ss)- The subsidiary economic activity status of a person refers to the additional economic activity they engage in for a period of 30 days or more within the 365 days preceding the survey. This activity is performed alongside their primary status and is taken into account when assessing the person’s overall economic engagement.
Key Findings Of PLFS Annual Report 2022- 2023
Estimates Of Key Labour Market Indicators In Usual Status (ps+ss)
- The Labour Force Participation Rate (LFPR) in rural areas rose from 50.7% in 2017-18 to 60.8% in 2022-23. In contrast, LFPR growth in urban areas was smaller, from 47.6% to 50.4%.
- The male LFPR in India experienced an increase from 75.8% in 2017-18 to 78.5% in 2022-23.
- For women, the LFPR saw a more significant rise from 23.3% to 37.0%.
- The Work Participation Rate (WPR) in rural areas followed a similar upward trend, going from 48.1% in 2017-18 to 59.4% in 2022-23, while urban areas saw an increase from 43.9% to 47.7%.
- Male WPR in India rose from 71.2% in 2017-18 to 76.0% in 2022-23.
- For females, the increase was from 22.0% to 35.9%.
- Unemployment Rate (UR) in rural areas dropped from 5.3% in 2017-18 to 2.4% in 2022-23. Similarly, urban UR fell from 7.7% to 5.4%.
- For males, the UR declined from 6.1% in 2017-18 to 3.3% in 2022-23.
- The female UR saw a decrease from 5.6% to 2.9%.
Estimates Of Key Labour Market Indicators In Current Weekly Status (CWS)
- The Labour Force Participation Rate (LFPR) in rural areas rose from 48.9% in 2017-18 to 56.7% in 2022-23.
- In urban areas, the LFPR increased from 47.1% to 49.4% over the same period.
- Male LFPR in India saw a growth from 75.1% to 77.4% between 2017-18 and 2022-23.
- Female LFPR witnessed a significant rise from 21.1% to 31.6% over the same timeframe.
- The Worker Participation Rate (WPR) in rural regions jumped from 44.8% in 2017-18 to 54.2% in 2022-23.
- Urban areas saw the WPR rise from 42.6% to 46.0%.
- Male WPR in India increased from 68.6% in 2017-18 to 73.5% in 2022-23.
- Female WPR also saw an increase, going from 19.2% to 30.0%.
- Unemployment Rate (UR) in rural areas fell from 8.4% in 2017-18 to 4.4% in 2022-23.
- Urban areas also saw a decrease in UR, from 9.5% to 7.0%.
- Male UR in India decreased from 8.7% in 2017-18 to 5.1% in 2022-23.
- Similarly, female UR went down from 9.0% to 5.1%.
Key Insights From PLFS 2022-23
- The unemployment rate is declining according to the PLFS 2022-23 report, which is a positive trend.
- The Labour Force Participation Rate (LFPR) and the Worker Population Ratio (WPR) have seen considerable increases, another promising sign.
- More women are entering the workforce, which indicates a shift in gender dynamics.
- However, the nature of these new jobs complicates the initially positive view.
- The majority of new jobs are classified as “self-employment”. In a thriving economy, businesses hire employees. In a struggling economy, people lose regular jobs and resort to self-employment.
- Women, in particular, seem to be joining the workforce as “unpaid helpers in household enterprises”. This trend suggests that economic hardship may be forcing women who have previously been outside the workforce to join in.
- From a sectoral perspective, more Indians are working in agriculture, while manufacturing jobs are decreasing.
- In a flourishing economy, monthly incomes should increase. However, this trend has not been observed in India.