The National Statistical Office (NSO) recently released its third annual report on the Periodic Labour Force Survey (PLFS), conducted from July 2019 to June 2020. The labour indicators show a significant improvement in 2019-20 compared to the previous two years, i.e., 2017-18 and 2018-19.
Understanding the Role of National Statistical Office
Established as the central statistical agency of the Government under the Statistical Services Act 1980, NSO functions under the Ministry of Statistics and Programme Implementation. It is tasked with developing arrangements for providing statistical information services that meet the needs of the Government and other users. This data serves as a basis for policy, planning, monitoring, and management decisions. The NSO’s services include collecting, compiling, and disseminating official statistical information.
In addition to the PLFS, the NSO is also responsible for other reports and indices, such as the Index of Industrial Production (IIP), Consumer Price Index (CPI), and the Sustainable Development Goals National Indicator Framework Progress Report.
Key Findings from the Survey
The PLFS report confirmed an overall decline in the unemployment rate to 4.8% in 2019-20, compared to 5.8% in 2018-19 and 6.1% in 2017-18. Similarly, the Worker Population Rate improved to 38.2% in 2019-20 compared with 35.3% in 2018-19 and 34.7% in 2017-18. Another positive trend was evidenced by the Labour Force Participation Ratio, which increased to 40.1% in 2019-20 from 37.5% and 36.9% respectively, in the last two years.
Gender-based Unemployment Rate
The data showed an encouraging decline in the jobless rate for both men and women. Rates fell to 5.1% and 4.2% respectively in 2019-20, down from 6% (male) and 5.2% (female) in 2018-19.
An Overview of Periodic Labour Force Survey
Launched by the NSO in 2017, the PLFS is India’s first computer-based survey. It was constituted based on the recommendations of a committee led by Amitabh Kundu. The survey maps the state of employment in India, collecting data on variables like levels of unemployment, types of employment, wages earned in different types of jobs, the number of hours worked, and more.
Aim of the Survey
The primary objectives of the PLFS are to estimate key employment and unemployment indicators like Worker Population Ratio (WPR), Labour Force Participation Ratio (LFPR), Unemployment Rate (UR) in three-month intervals for urban areas only. It also estimates employment and unemployment indicators annually in both rural and urban areas.
Government Initiatives to Tackle Unemployment
To combat unemployment, the Union government has launched initiatives such as the Atmanirbhar Bharat Abhiyan economic stimulus package. This scheme aims to support the Indian economy and create jobs. Other initiatives include affordable loans for street vendors under the Pradhan Mantri Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi).
In 2020, the government allocated an additional fund of Rs 40,000 crore for MGNREGA. It also offers credit guarantees for Micro, Small and Medium Enterprises (MSMEs) to boost their functioning. The Pradhan Mantri Mudra Yojana was established to provide financial support to entrepreneurs starting small enterprises. Other measures include relaxations in Companies Act and Insolvency proceedings, and reforms in agri-marketing.
The government is also working to reduce gender-based discrimination in wages, recruitment, and conditions of employment through initiatives such as the New Code on Wages, 2019. Further efforts are visible at the state level too, with states like Andhra Pradesh launching the ‘ReStart’ programme to support the MSME sector, and Jharkhand launching three employment schemes for rural wage employment.
Understanding the Key Terms Related to Employment
The Unemployment Rate (UR) refers to the percentage of unemployed people among the labour force. The Labour Force Participation Rate (LFPR) is the percentage of people in the labour force (those working or seeking or available for work) in the population. The Worker Population Ratio (WPR) is the percentage of employed persons in the population. The activity status of a person, determined based on their activities during a specified reference period, is classified under two categories: Usual Status (based on the last 365 days) and Current Weekly Status (based on the last 7 days).