PERIODIC LABOUR FORCE SURVEY

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Context

Unemployment rate for persons of age 15 years and above in urban areas dipped to 9.8 per cent in July-September 2021 from 13.2 per cent in the same quarter of the previous year, showed the 12th Periodic Labour Force Survey by the National Statistical Office (NSO).

Some Definitions

Joblessness or unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force.
In the Current Weekly Status approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.
Labour force refers to the part of the population which supplies or offers to supply labour for pursuing economic activities for the production of goods and services and therefore, includes both employed and unemployed persons.
Labour force according to Current Weekly Status approach is the number of persons either employed or unemployed on an average in a week preceding the date of survey. LFPR is defined as the percentage of population in the labour force.

Findings of Periodic Labour Force Survey

Unemployment rate among females (age 15 years and above) in urban areas also declined to 11.6 per cent in July-September 2021 from 15.8 per cent a year ago. It was 14.3 per cent in April-June 2021.
Among males, the UR in urban area also dipped to 9.3 per cent in July-September 2021 compared to 12.6 per cent a year ago. It was 12.2 per cent in April-June 2021.
Labour force participation rate in CWS (current weekly status) in urban areas for persons of 15 years of age and above was 46.9 per cent in the July-September quarter of 2021, down from from 47.2 per cent in the same period a year ago. It was 46.8 per cent in April-June 2021.

Employment - Unemployment Surveys

Background

One of the major statistical hurdles in our country is the estimation of reliable employment and unemployment data. The NSSO (National Sample Survey Office) was historically conducting Employment and Unemployment Surveys as part of its National Sample Surveys.
They were quinquennial (once in every five years) Employment and Unemployment surveys.
These surveys were the prime source for statistics about employment and unemployment situation in the country.

PLFS

But from 1st April 2017, the NSSO has adopted a new employment and unemployment survey called Periodic Labour Force Survey (PLFS).
First report of the PLFS was published in June 2019 for the period of 2017-18.
The PLFS has now become the major employment and unemployment data of the NSSO; replacing the previous five-year surveys.
Since the PLFS aims to provide more employment data for more frequent intervals (annual and quarterly), the PLFS is superior to the earlier five-year employment estimates.
Methodologically, the PLFS is different from the earlier quinquennial surveys in terms of survey methodology, data collection mechanism and sampling design.

Measurement approaches under PLFS

Unemployment rate for PLFS is measured under two approaches – Usual Status and Current approach and Weekly Status approach. The reference period for usual status (ps+ss) approach is 1 year and that for current weekly status approach is 1 week.

Current Weekly Status (CWS)

The estimates of unemployed in current weekly status gives an average picture of unemployment in a short period of 7 days during the survey period.
Current weekly status measures the number of persons worked for at least 1 hour on any day during the 7 days preceding the date of survey.
Thus, the workforce measured in current weekly status (CWS) gives the average picture of the workforce in a short period of one week during the survey period.

Usual Status

The Labour Force under usual status approach is estimated by considering a time period of one year. It is estimated by clubbing two categories – usual principal status (ps) category and subsidiary status (ss) category.
The estimate of the labour force in the usual status (ps+ss) includes
(a) the persons who either worked or were available for work for a relatively long part of the 365 days preceding the date of survey and also
(b) persons among the remaining population who had worked at least for 30 days during the reference period of 365 days preceding the date of survey.

Important Definitions under PLFS

Worker Population Ratio (WPR): Worker Population Ratio (WPR) is the percentage of persons employed among the persons in the population.
Unemployment rate (UR): Unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force.
Educated persons for employment survey: Educated persons are defined as those who have attained the educational level of secondary and above.
Educated unemployment under PLFS: Unemployment among people who have secondary or higher education and an age of 15 years and higher.
Labour force participation rate (LFPR): LFPR is defined as the percentage of persons in the labour force in the population.