Periodic Labour Force Survey - PLFS

According to the third annual report on the Periodic Labour Force Survey (PLFS), conducted by the NSO between July 2019 and June 2020, the unemployment rate fell to 4.8 per cent in 2019 – 2020.

The Periodic Labour Force Survey (PLFS) is a committee constituted under the Ministry of Statistics and Programme Implementation (MoS&PI) on the recommendation of the National Statistical Commission -NSC to develop the survey methodology including the sample

design for generating monthly quarterly labour market data.

Information regarding the Periodic Labour Force Survey is relevant for the current affairs section of various competitive examinations since PLFS has been in the news recently.

Why in the news?

  • Labour indicators recorded an all-round improvement in 2019-20 compared with the previous two years. In 2018-19, it stood at 5.8 per cent and 6.1 per cent in 2017-18.
  • Key Finding of third annual report of PLFS –
    • The Labour Force Participation Rate in 2019 2020 is 40.1%
    • Unemployment Rate 2019 2020 is 4.8%
    • This is quite surprising since 2019 2020 saw the Indian economy’s Gross Domestic Product-GDP grow by just 4.2%.

Periodic Labour Force Survey UPSC Notes PDF:-Download PDF Here

Facts on Periodic Labour Force Survey will also assist the IAS exam aspirants to prepare well for the UPSC Mains GS I and GS III paper.

Periodic Labour Force Survey

  1. Considering the importance of availability of labour force data at more frequent time intervals, the National Statistical Office (NSO) launched the Periodic Labour Force Survey (PLFS) in April 2017.
  2. PLFS, is India’s first computer-based survey.
  3. Periodic Labour Force Survey, gives estimates of key employment and unemployment indicators like the labour force participation rate, worker population ratio, proportion unemployed and unemployment rate in rural households annually and on a quarterly basis for the urban households.
  4. PLFS is constituted on the basis of a recommendation by a committee headed by Amitabh Kundu. 
  5. Prior to PLFS, the National Sample Survey Organization – NSSO (now known as NSO) used to bring the data related to employment and unemployment based on its quinquennial (every 5 years) household socio-economic survey programme.
  6. Objective of the Periodic Labour Force Survey is primarily on two aspects – 
    • To measure the dynamics in labour force participation and employment status in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS). Thus, in every quarter, PLFS will bring out the level and change estimates of the key labour force indicators in CWS viz. Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), Unemployment Rate (UR). 
    • Secondly, for both rural and urban areas, level estimates of all important parameters in both usual status and CWS will be brought out annually.
  7. The first Annual Report conducted for the period July 2017- June 2018 covered both rural and urban areas giving estimates of all important parameters of employment and unemployment in both usual status (ps+ss) and current weekly status (CWS) was released in May 2019. This is the second Annual Report being brought out by NSO on the basis of the Periodic Labour Force Survey conducted during July 2018 – June 2019.
Definitions – 

  1. Labour Force Participation Rate: It is the percentage of people in the labour force (those who are working or seeking or available for work) in the population.
  2. Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
  3. Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
  4. 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 the last 365 days preceding the date of survey, it is known as the usual activity status of the person.
  5. Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of the last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.

Candidates preparing for upcoming  UPSC Prelims can check the following relevant related links for assistance in the preparation – 

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