About Periodic Labour Force Survey (PLFS)

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Focus: GS III: Indian Economy

Why in News?

According to the recent periodic labour force survey, the urban unemployment rate dipped further in the January to March 2023 quarter.

The unemployment rate in current weekly status (CWS) for persons of age 15 years and above in urban areas declined to 6.8% in the January to March 2023 quarter.
The urban labour force participation rate (LFPR) for all ages, however, inched up to a high of 38.1% in the fourth quarter of last fiscal from 37.9% in the October to December 2022 period.
The urban LFPR for persons above 15 years of age was even higher at 48.5% in the fourth quarter of FY23.

The Periodic Labour Force Survey was launched by the National Statistical Office (NSO) in April 2017.
The survey was initiated to address the need for more frequent and timely availability of labor force data.

To estimate key employment and unemployment indicators within a short time interval of three months specifically for urban areas using the “Current Weekly Status” (CWS) approach.
To estimate employment and unemployment indicators annually using both the “Usual Status” (ps+ss) and CWS approaches for both rural and urban areas.

The PLFS focuses on estimating the following indicators:

Labour Force Participation Rate (LFPR): It represents the percentage of individuals in the population who are part of the labor force, which includes those who are employed, seeking work, or available for work.
Worker Population Ratio (WPR): This indicator represents the percentage of employed individuals in the population.
Unemployment Rate (UR): The UR indicates the percentage of individuals who are unemployed among those in the labor force.

CWS refers to the activity status of individuals based on their activities during the preceding seven days before the survey.

The Periodic Labour Force Survey is conducted by the National Sample Survey (NSO), which operates under the Ministry of Statistics and Programme Implementation (MoSPI).

Disguised Unemployment: This is a situation in which more people are employed than are required. It is mostly seen in India’s agricultural and unorganised sectors.
Seasonal unemployment: Unemployment that happens only during particular seasons of the year. In India, agricultural labourers rarely work throughout the year.
Structural Unemployment: This is a type of unemployment that occurs when there is a mismatch between the jobs available and the abilities of the available workers.
Cyclical unemployment: Unemployment that rises during recessions and falls with economic expansion. It is mostly a phenomenon of capitalist economies.
Frictional Unemployment: It is also known as Search Unemployment, is the time lag between jobs when someone is looking for a new job or moving jobs.

Jobs in the capitalist world have become highly specialised but India’s education system does not provide the right training and specialisation needed for these jobs.
In India nearly half of the workforce is dependent on Agriculture – even though agriculture is underdeveloped in India and only provides seasonal employment.
Mobility of labour in India is low due to factors like language, religion, and climate.
The industrial development had adverse effects on cottage and small industries – as the cottage industries fall, many artisans become unemployed.
Constant increase in population has been a big problem and one of the main causes of unemployment.
Certain work is prohibited for specific castes in some areas and this also contributes to unemployment.