Periodic Labour Force Surveys (PLFS), which commenced in 2017-18, are a continuation of India’s long-standing efforts to measure employment and unemployment, initiated with the start of the National Sample Surveys in 1950. Initially, the methods used for data collection were not considered adequate for an economy where self-employment is significant. To improve this, a committee led by Prof. Dantwalla was established, resulting in a robust conceptual framework for measuring employment and unemployment in India. These concepts were first applied in the 27th round survey conducted from 1972 to 1973 and have been consistently utilized in subsequent surveys to ensure comparability.
Periodic Labour Force Survey (PLFS) will be helpful for UPSC IAS Exam preparation. GS Paper-3 Indian Economy.
Table of Content
- What is Periodic Labour Force Survey (PLFS)?
- Objectives
- Features
- Terminologies related to Periodic Labour Force Survey (PLFS)
- Key Findings of Periodic Labour Force Survey (PLFS)
- Issues with PLFS
- Conclusion
- Frequently Asked Questions (FAQs)
What is Periodic Labour Force Survey (PLFS)?
- The National Statistical Office (NSO) introduced the Periodic Labour Force Survey (PLFS) in 2017.
- It was India’s first computer-based survey.
- The establishment of PLFS was recommended by the Amitabh Kundu committee.
- Previously, the National Sample Survey Organisation (NSSO) utilized its quinquennial household socio-economic survey program to gather employment and unemployment data.
Objectives
- To estimate the key employment and unemployment indicators in the short time interval of three months for the urban areas only in the ‘Current Weekly Status’ (CWS).
- key employment and unemployment indicator include Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate.
- To estimate employment and unemployment indicators in ‘Usual Status’ (ps+ss) and CWS in both rural and urban areas annually.
Features
- The data collected in PLFS has been used to create three Annual Reports for the periods July 2017 – June 2018, July 2018 – June 2019, and July 2019 – June 2020.
- These reports cover both rural and urban areas.
- Additionally, eight Quarterly Bulletins for the period December 2018 to September 2020 have been released, providing information on labour force estimates such as WPR, LFPR, UR, etc.
- In urban areas, a rotational panel sampling design is implemented, where selected households are visited four times.
- This rotational scheme ensures that 75% of the first-stage sampling units (FSUs) are matched between consecutive visits.
Terminologies related to Periodic Labour Force Survey (PLFS)
- Labour Force Participation Rate (LFPR): LFPR shows the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
- Worker Population Ratio (WPR): WPR shows the percentage of people who are employed in the population.
- Unemployment Rate (UR): UR shows the proportion of individuals who are unemployed within the labour force.
- Activity Status – Usual Status (US): The activity status of an individual is determined by considering the activities they engaged in during a specific reference period.
- When this activity status is determined based on the activities pursued within the last 365 days before the survey date, it is referred to as the usual activity status.
- Activity Status – Current Weekly Status (CWS): The activity status of a person is determined by considering their activities within the last 7 days preceding the survey.
- This is known as the current weekly status (CWS) of the individual.
Key Findings of Periodic Labour Force Survey (PLFS)
| Metric | 2020-21 | 2019-20 | 2018-19 | 2017-18 |
| Unemployment Rate | 4.20% | 4.80% | 5.80% | 6.10% |
| Worker Population Rate (WPR) | 39.80% | 38.20% | 35.30% | 34.70% |
| Labour Force Participation Ratio | 41.60% | 40.10% | 37.50% | 36.90% |
| Gender-Based Unemployment Rate | ||||
| Males | 4.50% | 5.10% | 6% | 6.2 % |
| Females | 3.50% | 4.20% | 5.20% | |
Issues with PLFS
- The PLFS surveys conducted in 2017-18 and 2018-19 revealed significant shifts in employment among women.
- The decline in women’s employment in 2017-18 was initially attributed to sampling design and data collection methods.
- However, a closer examination showed the underlying factors to be a systematic decline in specific categories of women workers and the impact of policy decisions such as demonetization and GST. ss
- The use of contract personnel for the survey in 2017-18, lacking the intensive training and expertise of regular NSSO staff, may have contributed to the decline.
- Efforts were made in 2018-19 to retain experienced personnel and provide them additional training, which potentially helped in identifying more women workers.
Conclusion
The Periodic Labour Force Survey (PLFS) generates comprehensive reports on rural and urban areas. It also includes annual and quarterly data. It highlights important labour force estimates. These surveys have revealed varying unemployment rates and worker-population ratios. The surveys emphasize the need to address gender-based disparities and improve data collection methods to accurately capture employment trends.
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FAQs(Frequently Asked Questions)
Who publishes periodic labour force surveys?
The Periodic Labour Force Survey (PLFS) is released by the National Statistical Office (NSO).
What is the Periodic Labour Force Survey (PLFS)?
The Periodic Labour Force Survey (PLFS) is a survey that provides yearly and quarterly evaluations of key employment and unemployment indicators such as the labour participation rate, employee population ratio, proportion of jobless etc.