In recent developments, the National Statistical Office (NSO) revealed the quarterly Periodic Labour Force Survey (PLFS) statistics for October-December 2019. This information differs from the annual report, which encompasses both rural and urban sectors. In contrast, the quarterly data pertains exclusively to urban areas.
Key Findings in Unemployment Rate
The unemployment rate in urban regions eased off to 7.9% in the final quarter of 2019, down from 9.9% during the corresponding period of the previous year. However, some states recorded an urban unemployment rate above the national average. These include Uttar Pradesh, Uttarakhand, Telangana, Kerala, Madhya Pradesh, Jammu & Kashmir, Delhi, and Andhra Pradesh.
A gender-specific breakdown reveals a downward trend as well. The female unemployment rate dropped to 9.8%, a decrease from the previous year’s 12.3%. Similarly, the male unemployment rate fell from 9.2% to 7.3%.
Labour Force Participation Rate: An Upward Trend
The labour force participation rate witnessed an increase to 37.2% in October-December 2019, compared to 36.3% in the same timeframe in 2018.
About Periodic Labour Force Survey (PLFS)
The PLFS is India’s inaugural computer-based survey, launched by the NSO in 2017 upon the recommendation of a committee chaired by Amitabh Kundu. The survey serves two distinctive purposes:
1) Estimating vital employment and unemployment indicators within a three-month interval for urban locales only, utilizing the Current Weekly Status (CWS) methodology.
2) Annually estimating employment and unemployment indicators in both usual status and CWS across urban and rural regions.
Prior to the implementation of the PLFS, employment and unemployment data derived from the quinquennial (every 5 year) household socio-economic survey conducted by the NSSO, the former alias of the NSO.
Decoding Key Terms
The term ‘Unemployment Rate’ (UR) refers to the percentage of jobless individuals among those categorized as part of the labour force. The ‘Labour Force Participation Rate’ (LFPR) is the proportion of the labour force (i.e., those currently employed or actively seeking work) in relation to the overall population. ‘Worker Population Ratio’ (WPR), on the other hand, signifies the fraction of the employed populace in comparison to the total population.
A person’s ‘Activity Status’ is determined based on their activities during a specified timeframe. ‘Usual Status’ entails a reference period of the preceding 365 days from the survey date, while the ‘Current Weekly Status’ (CWS) takes the last 7 days into account.
About National Statistical Office (NSO)
Operating under the Ministry of Statistics and Programme Implementation, the NSO is the central statistical authority of the Government, as stipulated by the Statistical Services Act 1980. Its responsibilities include statistical information service development to cater to government needs and other users for decision-making in policy, planning, monitoring, and management. Its services range from data collection and compilation to dissemination of official statistical information, all carried out in strict compliance with international standards, procedures and best practices.