The National Statistical Office (NSO) recently released the Periodic Labour Force Survey (PLFS) 2023-24, highlighting that India’s unemployment rate has remained steady at 3.2%. This trend raises concerns about the country’s ability to generate sufficient formal employment opportunities for its growing workforce. The PLFS is a critical tool for understanding labour market dynamics in India, providing comprehensive data on employment, unemployment, and workforce participation across rural and urban areas.
What is the Periodic Labour Force Survey (PLFS)?
The Periodic Labour Force Survey was initiated by the National Sample Survey Office (NSSO) in April 2017 to address the need for frequent and accurate labour statistics. Unlike earlier surveys, PLFS is India’s first computer-based survey aimed at producing reliable estimates of key employment and unemployment indicators.
Key Features of PLFS
- Household Coverage: Includes households from both rural and urban areas.
- Data Collection: Computer-assisted surveys ensure accuracy and efficiency.
- Annual Reports: So far, six annual reports covering July 2017 to June 2023 have been released.
- Latest Report: The seventh annual report covers July 2023–June 2024, providing the most recent employment and unemployment data.
By providing high-frequency labour statistics, PLFS helps policymakers design better employment generation strategies, monitor the effectiveness of government schemes, and assess the overall health of the labour market.
Objectives of the Periodic Labour Force Survey
The PLFS serves two primary objectives:
- Quarterly Estimates for Urban Areas:
- Measures key indicators like Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), and Unemployment Rate (UR) for urban areas under Current Weekly Status (CWS).
- Annual Estimates for Rural and Urban Areas:
- Provides data under Usual Status (ps+ss) and Current Weekly Status (CWS) for the entire population.
- Helps in tracking employment trends, evaluating workforce participation, and understanding employment quality.
Key Indicators Measured by PLFS
PLFS uses several standard indicators to assess employment conditions in India:
- Worker Population Ratio (WPR): Percentage of employed persons in the total population.
- Labour Force Participation Rate (LFPR): Percentage of persons working, seeking work, or available for employment.
- Unemployment Rate (UR): Percentage of unemployed persons among the labour force.
- Activity Status: Determined by activities pursued during the reference period.
- Usual Status: Employment activity over 365 days.
- Current Weekly Status (CWS): Employment activity during the 7 days preceding the survey.
Highlights of the PLFS 2023-24 Report
The PLFS 2023-24 report reveals critical trends in India’s labour market:
- Unemployment Rate: 3.2% (up from 3.1% in 2022-23).
- Labour Force Participation Rate (LFPR): 60.1% overall
- Men: 78.8%
- Women: 41.7%
- Rural LFPR: 63.7%
- Urban LFPR: 52%
This increase in rural LFPR indicates that more individuals are actively seeking work in rural areas, possibly due to reverse migration from cities and limited urban employment opportunities post-pandemic.
- Worker Population Ratio (WPR): 58.2%
- Men: 76.3%
- Women: 40.3%
- Quality of Employment:
- Share of regular or wage employment increased to 21.7% (from 20.9%).
- Share of self-employment, including unpaid household work or small business activities, rose to 58.4% (from 57.3%).
- Gender-Specific Trends:
- Female unemployment rose to 3.2% (from 2.9%).
- Male unemployment slightly decreased to 3.2% (from 3.3%).
These statistics highlight a gradual improvement in job quality but also underscore the persistent gender gap in employment opportunities.
Government Employment Generation Schemes
To address the challenges highlighted by PLFS, the government has implemented multiple schemes aimed at skill development, employment creation, and entrepreneurship promotion:
| Scheme | Ministry | Purpose |
| Atmanirbhar Bharat Rojgar Yojana (ABRY) | Labour & Employment | Incentivizes employers to create jobs and provide social security post-COVID. |
| Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) | Labour & Employment | Encourages new employment creation by employers. |
| National Career Service (NCS) Project | Labour & Employment | Offers career guidance, job matching, and skill development. |
| MGNREGA | Rural Development | Provides 100 days of wage employment to rural households. |
| Pradhan Mantri Garib Kalyan Rojgar Abhiyaan (PMGKRA) | Rural Development | Provides 125 days of employment for returnee migrants. |
| DDU-GKY | Rural Development | Placement-linked skill development program for rural youth. |
| RSETIs | Rural Development | Provides entrepreneurship training to rural youth. |
| PM-SVANidhi | Housing & Urban Affairs | Collateral-free loans for urban street vendors. |
| DAY-NULM | Housing & Urban Affairs | Self-employment and skilled wage employment support for urban poor. |
| PMEGP | MSME | Generates self-employment via micro-enterprises. |
| PMMY | Finance | Loans for small/micro non-farm enterprises. |
| PMKVY | Skill Development | Industry-relevant skill training for youth. |
| Future Skills PRIME | Electronics & IT | Reskilling/upskilling in emerging technologies, including AI. |
These programs are crucial for creating formal job opportunities, improving skill sets, and enhancing employability, especially in the post-pandemic context.
Conclusion
The Periodic Labour Force Survey (PLFS) 2023-24 provides a comprehensive snapshot of India’s labour market, revealing both progress and challenges. While overall employment has improved slightly and job quality shows marginal gains, the unemployment rate, especially among women, remains a concern.
By providing high-quality data, PLFS enables policymakers, researchers, and economists to monitor labour trends, evaluate employment schemes, and formulate strategies to boost formal employment opportunities in India. With the combined impact of government initiatives and targeted policy interventions, PLFS serves as an essential tool for India’s workforce planning and economic growth.
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