Periodic Labour Force Survey(PLFS) – Annual Report [July, 2023 – June,2024]

GOVERNMENT OF INDIA

MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

Key findings

Labour Force Participation Rate (LFPR) in usual status(ps+ss) for personsof age 15 years and above was 60.1% during July 2023 - June 2024. The same for male and female was 78.8% and 41.7% respectively.

·Overall LFPR in usual status (ps+ss)for persons of age 15 years and above has increased from 57.9% during July 2022 – June 2023 to 60.1% during July 2023 – June 2024. LFPR for female of age 15 years above in usual status (ps+ss) has increased from 37.0% during July 2022 – June 2023 to 41.7% during July 2023 – June 2024. For male of the same age group LFPR in usual status (ps+ss) increased from 78.5% to 78.8% during the same time span.

·Worker Population Ratio (WPR) in usual status (ps+ss)for persons of age 15 years and above was 58.2% during July 2023 – June 2024. The same for male and female was 76.3% and 40.3% respectively.

·WPR in usual status(ps+ss) among femaleof age 15 years and above has shown an increase from 35.9% during July 2022 – June 2023 to 40.3% duringJuly 2023 – June 2024.The overall WPR among persons of the same age groupin usual status(ps+ss) has increasedfrom 56.0% during July 2022 – June 2023 to 58.2% during July 2023 – June 2024.

·Unemployment Rate (UR) in usual status (ps+ss) was 3.2% for both male and female of age 15 years and above during July 2023 – June 2024. While the same for male has shown a marginal decline from 3.3% during July 2022 – June 2023 to 3.2% during July 2023 – June 2024, among female it has increased from 2.9% to 3.2% during the same time span.Further, it also dilutes the level and quality of overall information gathered from option (i) Thus, the inference drawn from such data would also lead to distortion. The data obtained through the 61st (2004–05), 66th (2009–10) and 68th (2011–12) rounds for the NSS Employment–Unemployment Survey leads to a number of important observations. It has been observed that in the abovestated three rounds, an average of 80% respondents fall in category I. They are cooperative and capable, about 17% respondents fall in category II. They are cooperative but not capable. About 2% respondents fall in category III. They are busy and cannot respond to the survey. About 1% respondents are in categories IV and V. They are either reluctant or are in the category, “others.” In other words, the responses of about 20% of the respondents—about a fifth—do not lead to clarity. The data generated through the information from such unwilling respondents often yields intriguing estimates. This also has its long-term repercussions on data collected from successive rounds. The other impact of such data coming below the level of expectation deprives the scholars, policymakers and other stakeholders to raise questions about the reliability and veracity of data. Substitution of households is usual in large-scale surveys. Households are selected scientifically as per the standardised procedures. An emphasis is also laid on canvassing the schedules from originally selected households. However, if respondents are not providing the data due to various reasons, the data collector has to substitute such originally selected household as per laid-down procedures to cover the requisite number of households. As observed from Table 2, in the said three surveys, an average of 3% substituted households were surveyed and the reason for substituting 20% households (that is, every fifth household) of these households was, that e ither the informant was busy or noncooperative. The problem of response beyond the expected framework does not end here, even after substituting non-responsive households. Thus, results of large-scale national surveys being analysed with such drawbacks would certainly lead to inappropriate policies at the national level. Hence, it is imperative that sincere efforts are made to find out its reasons and solutions thereof.
Key findings

·Labour Force Participation Rate (LFPR) in usual status(ps+ss) for personsof age 15 years and above was 60.1% during July 2023 - June 2024. The same for male and female was 78.8% and 41.7% respectively.

·Overall LFPR in usual status (ps+ss)for persons of age 15 years and above has increased from 57.9% during July 2022 – June 2023 to 60.1% during July 2023 – June 2024. LFPR for female of age 15 years above in usual status (ps+ss) has increased from 37.0% during July 2022 – June 2023 to 41.7% during July 2023 – June 2024. For male of the same age group LFPR in usual status (ps+ss) increased from 78.5% to 78.8% during the same time span.

·Worker Population Ratio (WPR) in usual status (ps+ss)for persons of age 15 years and above was 58.2% during July 2023 – June 2024. The same for male and female was 76.3% and 40.3% respectively.

·WPR in usual status(ps+ss) among femaleof age 15 years and above has shown an increase from 35.9% during July 2022 – June 2023 to 40.3% duringJuly 2023 – June 2024.The overall WPR among persons of the same age groupin usual status(ps+ss) has increasedfrom 56.0% during July 2022 – June 2023 to 58.2% during July 2023 – June 2024.

·Unemployment Rate (UR) in usual status (ps+ss) was 3.2% for both male and female of age 15 years and above during July 2023 – June 2024. While the same for male has shown a marginal decline from 3.3% during July 2022 – June 2023 to 3.2% during July 2023 – June 2024, among female it has increased from 2.9% to 3.2% during the same time span.

A.Introduction
Considering the importance of availability of labour force data at more frequenttime intervals, National Sample Survey Office (NSSO) launched Periodic Labour Force Survey (PLFS) in April 2017. The objective of PLFS is primarily twofold:

·to estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the ‘Current Weekly Status’ (CWS).
·to estimate employment and unemployment indicators in both ‘Usual Status’ (ps+ss) and CWS in both rural and urban areas annually.
Six Annual Reportscovering both ruraland urban areas giving estimatesof all important parameters of employment and unemployment in both usual status (ps+ss) and current weekly status (CWS) have been released. These six Annual Reports are brought out on the basis of data collectedin PLFS during July 2017- June 2018, July 2018-June 2019, July 2019-June2020, July 2020 - June 2021, July
2021-June 2022 and July 2022-June 2023.

Now the seventhAnnual Report is being broughtout by NSSO on the basis of Periodic LabourForce Survey conducted during July 2023-June 2024.

B.PLFS fieldwork during July 2023 – June 2024
The field work for collection of information in respect of the samples allotted for the period July 2023 – June 2024, was completed timelyexcept for 37 first visitFSU samples (Manipur-21, Madhya Pradesh-4, Tripura-3, Punjab-2, Odisha-1, Chhattisgarh-1, Telangana-2, Maharashtra-1, Gujarat-1, Andhra Pradesh-1) and 80 revisit FSUs which were treated as casualties.

C.Sample Designof PLFS
1.A rotational panel sampling design has been used in urban areas. In this rotational panel scheme, each, selected household in urban areas is visited four times, in the beginning with ‘First Visit Schedule’ and thrice periodically later with a ‘Revisit Schedule’. In urban area, samples for a panel within each stratum were drawn in the form of two independent sub-samples. The scheme of rotation ensures that 75% of the first-stage sampling units (FSUs)1 are matched between two consecutive visits. There was no revisit in the rural samples. For rural areas, samples for a stratum/sub-stratum were drawn randomly in theform of two independent sub-samples. For rural areas, in each quarter of the survey period, 25% FSUs of annual allocation were covered.
D.Sample Size
1Villages and urban blocksare the smallestarea units taken as first-stage sampling units (FSU)in rural and urban areas respectively.

2.Sample Size for First Visit during July 2023 - June 2024 in rural and urban areas for the Annual Report: Out of the total numberof 12,800 FSUs (7,016 villagesand 5,784 UFS blocks) allotted for the survey at the all-Indialevel during July 2023 - June 2024,a total of 12,743 FSUs (6,975 villages and 5,768 urban blocks) were surveyed for canvassing the PLFS schedule (Schedule 10.4). The number of households surveyedwas 1,01,920 (55,796in rural areasand 46,124 in urban areas)and number of persons surveyed was 4,18,159 (2,42,546 in rural areas and 1,75,613 in urban areas). Among the persons surveyed, total number of persons of age 15 years and above was 3,19,773 (1,80,793 in rural areas and 1,38,980 in urban areas).
3.Conceptual Framework of Key Employment and Unemployment Indicators: The Periodic Labour Force Survey (PLFS) gives estimates of Key employment and unemployment Indicators like, theLabour Force Participation Rates (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), etc. These indicators, and the ‘UsualStatus’ and ‘CurrentWeekly Status’ are defined as follows:

(a)Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in labour force (i.e. working or seeking or available for work) in the population.
(b)Worker Population Ratio (WPR): WPR is defined as the percentage of employed personsin the population.
(c)Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
(d)Activity Status- Usual Status: The activity status of a person is determined on the basis of the activities pursued by the person duringthe specified referenceperiod. When the activity status is determined on the basis of the referenceperiod of last 365 days preceding the date of survey, it is known as the usual activity status of the person.

(e)Principal activity status (ps) - The activity status on which a person spent relatively long time (major time criterion) during 365 days preceding the date of survey, was considered the usual principal activity status of the person.

(f)Subsidiary economic activity status (ss)- The activity status in which a person in addition to his/her usual principal status,performs some economicactivity for 30 days or more for the reference period of 365 days preceding the date of survey, was considered the subsidiary economic activity status of the person.

(g)Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.

The Annual Report on PLFS 2023-24is available at the websiteof the Ministry (https://mospi.gov.in). The key results are given in the statements annexed.

Key Findings of PLFS, AnnualReport 2023- 2024

A. Estimates of key labour market indicators in usual status(ps+ss)1.Increasing Trend in LabourForce Participation Rate (LFPR) for persons of age 15 years and above
In rural areas, LFPR increased from 50.7% in 2017-18 to 63.7% in 2023-24 while for urban areas it increased from 47.6% to 52.0%. LFPR for male in Indiaincreased from 75.8% in 2017-18to 78.8% in 2023-24 and corresponding increase in LFPR for female was from 23.3% to 41.7%.
2. Increasing Trend in WorkerPopulation Ratio (WPR)for persons of age 15 years and above

In rural areas, WPR increased from 48.1% in 2017-18 to 62.1% in 2023-24 while for urban areas it increased from 43.9% to 49.4%. WPR for male in India increased from 71.2% in 2017-18 to 76.3% in 2023-24 and corresponding increase in WPR for female was from 22.0% to 40.3%.
3.Decreasing Trendin Unemployment Rate (UR) for persons of age 15 years and above

In rural areas, UR decreased from 5.3% in 2017-18 to 2.5% in 2023-24 while for urban areas it decreased from 7.7% to 5.1%. UR for male in Indiadecreased from 6.1% in 2017-18to 3.2% in 2023- 24 and corresponding decrease for female was from 5.6% to 3.2%.
B. Estimates of key labour marketindicators in CurrentWeekly Status (CWS)
4. Increasing Trend in LabourForce Participation Rate (LFPR) for persons of age 15 years and above

In rural areas, LFPR increased from 48.9% in 2017-18 to 58.9% in 2023-24 while for urban areas it increased from 47.1% to 50.8%. LFPR for male in Indiaincreased from 75.1% in 2017-18to 77.5% in 2023-24 and corresponding increase for female was from 21.1% to 35.6%.
5.Increasing Trend in WorkerPopulation Ratio (WPR)for persons of age 15 years and above

In rural areas, WPR increased from 44.8% in 2017-18 to 56.5% in 2023-24 while for urban areas it increased from 42.6% to 47.4%. WPR for male in India increased from 68.6% in 2017-18 to 73.8% in 2023-24 and corresponding increase for female was from 19.2% to 33.8%.
6.Decreasing Trendin Unemployment Rate (UR) for persons of age 15 years and above

In rural areas, UR decreased from 8.4% in 2017-18 to 4.2% in 2023-24 while for urban areas it decreased from 9.5% to 6.7%. UR for male in Indiadecreased from 8.7% in 2017-18to 4.8% in 2023- 24 and corresponding decrease for female was from 9.0% to 5.0%.

Note: DetailedResults are availableat the website of theMinistry (www.mospi.gov.in)

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