Central Idea

The latest findings from the Periodic Labour Force Survey (PLFS), conducted by the National Sample Survey Office (NSSO), reveal a decrease in India’s unemployment rate for the period between April and June 2023.
This encouraging trend is accompanied by improvements in the Labour Force Participation Rate (LFPR) and the Worker-Population Ratio (WPR), signifying positive shifts in the country’s labor market.

About Periodic Labour Force Survey (PLFS)

Objective	Collect comprehensive labor market data in India.
Conducted by	Ministry of Statistics and Programme Implementation (MoSPI), Government of India.
Replacement for	Replaced earlier employment-unemployment surveys by NSSO.
Frequency	Conducted periodically, with rounds typically spanning a year.
First Round	Conducted in July 2017-2018, marking the survey’s initiation.
Data Categories	Employment status, unemployment rate, sector-wise employment, income, demographics, and more.
Sampling Methodology	Sample survey approach with data collected from households and individuals through a scientific sampling process.
Policy Impact	Informs government policies related to employment, labor market interventions, and economic planning.

Scope: The national survey compiled data from 5,639 first-stage sampling units (FSUs) and encompassed 1,67,916 individuals residing in 44,190 urban households.
Age Group: The survey focused on individuals aged 15 years and above.

LFPR Uptick: The LFPR in urban areas exhibited growth, rising from 47.5% in April-June 2022 to 48.8% in the corresponding months of 2023 for individuals aged 15 years and above.
Gender Disparities: While the LFPR remained stable at approximately 73.5% for males during this period, it notably increased for females, climbing from 20.9% to 23.2%.

WPR Gains: In urban areas, the WPR increased from 43.9% in April-June 2022 to 45.5% during the same period in 2023 for individuals aged 15 years and above.
Gender-Specific Improvements: For males, the WPR progressed from 68.3% to 69.2%, and for females, it surged from 18.9% to 21.1% over this timeframe.

Declining Unemployment: The PLFS reported a diminishing trend in the Unemployment Rate (UR) for individuals aged 15 years and above in urban areas.
UR in Urban Areas: It decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023.
Gender-Based UR: For males, the UR dropped from 7.1% to 5.9%, while for females, it decreased from 9.5% to 9.1% during this period.

Positive Trends: The report highlights improvements in key labor market indicators in urban areas when compared to the pre-pandemic period (April-June 2018 to October-December 2019).
LFPR Improvement: The LFPR ranged from 46.2% to 47.8% during the pre-pandemic period and has now reached 48.8%.
WPR Enhancement: Pre-pandemic WPR figures ranged from 41.8% to 44.1%, while the current WPR stands at 45.5%.
Lower UR: Unemployment rates during the pre-pandemic period fluctuated between 7.8% and 9.7%, with the latest survey reporting a lower UR of 6.6%. This rate is deemed favorable compared to the unemployment rates observed in the quarters preceding the pandemic.

The Periodic Labour Force Survey (PLFS) results reflect positive developments in India’s labor market, marked by a decreasing unemployment rate, improved labor force participation, and enhanced worker-population ratios.
These trends indicate a resilient labor market recovery and may signify the nation’s progress towards economic stability and job creation.

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.
Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
Activity Status- Usual Status: The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period. When the activity status is determined on the basis of the reference period of last 365 days preceding the date of survey, it is known as the usual activity status of the person.
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.