Periodic Labour Force Survey (PLFS) – Annual Report

Seventh Annual Report is being brought out by NSSO on the basis of Periodic Labour Force Survey conducted during July 2023-June 2024.

Conceptual Framework of Key Employment and Unemployment Indicators

• Labour Force Participation Rate (LFPR)  is defined as Percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
• Worker Population Ratio (WPR): Percentage of employed persons in the population.
• Unemployment Rate (UR): Percentage of persons unemployed among the persons in the labour force.
• Activity Status – Determined on the basis of the activities pursued by the person during the specified reference period. 
• Usual Activity Status: Activity Status of a person in the last 365 days which Includes both ps and ss.
  • Principal activity status (ps): The activity status on which a person spent relatively long time (major time criterion) during 365 days preceding the date of survey, was considered the usual principal activity status of the person.
  • Subsidiary economic activity status (ss): Activity status in which a person in addition to his/her usual principal status, performs some economic activity for 30 days or more for the reference period of 365 days preceding the date of survey.
• Current Weekly Status (CWS) :Activity status determined on the basis of a reference period of last 7 days preceding the date of survey.

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Key Findings of PLFS  Annual Report

• Estimates of key labour market indicators in usual status (ps+ss)

1. Increasing Trend in Labour Force Participation Rate (LFPR) for persons of age 15 years and above

• Rural areas: increased from 50.7% in 2017-18 to 63.7% in 2023-24
• Urban areas : increased from 47.6% to 52.0%
• Males:Increased from 75.8% in 2017-18 to 78.8% in 2023-24 
• Females: Increased from 23.3% to 41.7%. 

2. Increasing Trend in Worker Population Ratio (WPR) for persons of age 15 years and above

• Rural areas: Increased from 48.1% in 2017-18 to 62.1% in 2023-24 
• Urban areas: Increased from 43.9% to 49.4%
• Male:Increased from 71.2% in 2017-18 to 76.3% in 2023-24 
• Female: Increased from 22.0% to 40.3%

3. Decreasing Trend in Unemployment Rate (UR) for persons of age 15 years and above

• Rural areas :Decreased from 5.3% in 2017-18 to 2.5% in 2023-24 
• Urban areas: Decreased from 7.7% to 5.1%
• Male: Decreased from 6.1% in 2017-18 to 3.2% in 2023- 24 
• Female: Decreased from 5.6% to 3.2%.

What is the Periodic Labour Force Survey?

• The Survey is conducted by the NSO under the Ministry of Statistics and Programme Implementation (MoSPI) to measure the employment and unemployment situation in India.
• NSO launched the PLFS in April 2017 replacing the Employment and Unemployment survey (EUS).

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Objective of PLFS

• To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate):
• Short-term urban focus: Estimate key employment and unemployment indicators for urban areas every three months using the Current Weekly Status (CWS).
• Annual rural and urban assessment: Estimate employment and unemployment indicators for both rural and urban areas annually, using both the Usual Status and CWS.

Central Government has introduced many Employment generation schemes to overcome the Unemployment Issues:

Provision for Employment in Budget of 2024

• To stimulate employment generation across all sectors, including manufacturing, three Employment-linked incentive (“ELI”) schemes have been introduced in the 2024 budget.
• These schemes offer subsidies to both employers and employees for a period of two years, based on EPF enrolments.
• The proposed measures will also help extend EPF coverage to more employees across sectors.
• The ELI schemes aim to:
  • Recognize and benefit first-time employees while encouraging new entrants into the workforce.
  • Generate new job opportunities across various sectors.
  • Provide support to employers for generating additional employment opportunities.

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