The Periodic Labour Force Survey (PLFS) is an initiative launched by the National Statistical Office (NSO) in April 2017. Recognizing the need for the availability of labour force data at more regular intervals, PLFS primarily aims to estimate key employment and unemployment indicators in the short term interval of three months for only urban areas through the Current Weekly Status (CWS) approach. This method considers a person unemployed if they did not work even for one hour any day during the week but were seeking or available for work at least for one hour any day during that period. PLFS also annually estimates employment and unemployment indicators in both rural and urban areas.
Highlights of the PLFS 2020-21 Report
The PLFS report for 2020-21, released by the Ministry of Statistics and Programme Implementation(MOSPI), shows several significant findings. The unemployment rate dropped to 4.2% as compared with 4.8% in 2019-20. More specifically, the unemployment rate in rural and urban areas recorded was 3.3% and 6.7% respectively.
The report also presents data on the Labour Force Participation Rate (LFPR), which measures the percentage of persons participating in the labour force (working or seeking work or available for work). This rate increased from 40.1% in the previous year to 41.6% during 2020-21.
The Worker Population Ratio (WPR), defined as the percentage of employed persons in the population, showed an increase from 38.2% of the previous year to 39.8%. The migration rate was recorded at 28.9%, with 48% of women migrating in rural areas and 47.8% in urban areas.
Understanding Unemployment Rate and Labour Force
Unemployment rate and labour force are crucial metrics in labor statistics. The unemployment rate is the percentage of unemployed persons in the labour force. On the other hand, the labour force, as per the Current Weekly Status (CWS), comprises individuals either employed or unemployed on an average in a week preceding the survey date.
Recent Initiatives to Combat Unemployment
The government has taken several steps to combat unemployment. These include the Support for Marginalised Individuals for Livelihood and Enterprise (SMILE), PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and the Start Up India Scheme.
Types of Unemployment in India
Unemployment in India takes on several different forms. Disguised unemployment occurs when more people are employed than necessary. Seasonal unemployment corresponds with certain seasons of the year. Structural unemployment arises from a mismatch between available jobs and workers’ skills. Cyclical unemployment fluctuates with economic growth and recession periods. Technological unemployment refers to job loss due to technological advancements. Frictional Unemployment occurs during the transition period when an individual is searching for a new job or switching between jobs. Lastly, vulnerable employment refers to informal work without proper job contracts and legal protection.
Assessment of Unemployment Patterns Through UPSC Civil Services Previous Year Questions
Disguised unemployment was discussed in the 2013 UPSC Civil Services examination, where it was defined as an economic state with low productivity and excessive workers for available jobs. The marginal productivity of labour, or the additional output gained by the addition of one unit of labour, is zero under disguised unemployment due to the surplus of labour already engaged in work. As such, this situation is a critical area of economic concern.