The National Statistical Office (NSO) recently released its Periodic Labour Force Survey (PLFS) for the period spanning July 2018 to June 2019. The data reveal interesting insights into India’s employment sector, including encouraging declines in unemployment rates and increases in labour force participation.
Unemployment Rate Trend
The PLFS findings indicate a decrease in India’s overall unemployment rate from 6.1% during 2017-18 to 5.8% during 2018-19. In terms of location, the urban unemployment rate reduced slightly from 7.8% to 7.7%, while rural unemployment showed a steeper decline, moving from 5.3% to 5%.
Increased Labour Force Participation
The labour force participation rate, which represents the share of working-aged individuals who are either employed or seeking employment, rose from 36.9% in 2017-18 to 37.5% in 2018-19. Notably, the female participation rate also experienced an upward trend, improving from 17.5% to 18.6% over the same time period.
Worker Population Ratio
Alongside these improvements, the worker population ratio, indicating the percentage of employed persons in the total population, increased from 34.7% in 2017-18 to 35.3% the following year.
Challenges: Unemployment and Covid-19
Despite the positive trends, unemployment remained a concern in 2019, a situation worsened by the Covid-19 pandemic in 2019-20. Data from the Centre for Monitoring Indian Economy revealed a dramatic increase in the unemployment rate, from 7.87% in June 2019 to 23.48% in May 2020.
About the Periodic Labour Force Survey
The PLFS, launched by the National Statistical Office in 2017, is India’s first computer-based survey focusing on employment and unemployment. It was established based on the recommendations of Amitabh Kundu and aims to estimate key employment indicators on a short-term interval for urban areas and annually for both rural and urban areas.
Key Terminologies
The labour force survey includes several critical terms. The Unemployment Rate (UR) represents the percentage of unemployed individuals among the labour force. The Labour Force Participation Rate (LFPR) indicates the share of the population working or seeking work. The Female Labour Force Participation Rate pertains to the proportion of working-age women who are either employed or seeking employment. The Worker Population Ratio (WPR) signifies the percentage of employed persons in the total population.
About the National Statistical Office
The NSO, which operates under the Ministry of Statistics and Programme Implementation, is the primary statistical agency of the Government. It gathers, compiles, and disseminates official statistical information to support government decisions on policy, planning, and management.
Government Initiatives to Address Unemployment
Various initiatives have been introduced to tackle unemployment. Among these are the economic stimulus package under Atma Nirbhar Bharat Abhiyan, affordable loans for street vendors under the Pradhan Mantri Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi), additional funds allocated to MGNREGA, and credit guarantees for MSMEs. Other support measures include relaxations in Companies Act and Insolvency proceedings and reforms in agri-marketing.
State-Level Measures
State governments are also implementing initiatives to boost their economies and create jobs. A prime example is Andhra Pradesh’s ‘ReStart’ programme to support the Micro, Small and Medium Enterprise (MSME) sector. Similarly, Jharkhand has inaugurated three employment schemes aimed at creating wage employment in rural areas.