NSO Released Periodic Labour Force Survey (PLFS) Annual Report 2022-2023

The PLFS (Periodic Labour Force Survey), by the NSO (National Statistical Office), has released its results for the period of April to June 2023. The report indicates a notable decrease in the country’s unemployment rate, a rise in the Labor Force Participation Rate (LFPR), and an improvement in the Worker-Population Ratio (WPR).

This survey, which sampled data from 5,639 first-stage sampling units (FSUs) and 1,67,916 individuals across 44,190 urban households, provides valuable insights into the changing dynamics of India’s labor market.

Positive Shift in Labor Force Participation

One of the key takeaways from the PLFS is the increase in the Labor Force Participation Rate (LFPR) for individuals aged 15 years and above. In urban areas, the LFPR has risen from 47.5% in April-June 2022 to 48.8% in the same period of 2023. This data reflects a promising trend, indicating growing participation in the labor force.

Gender Disparity in Labor Force Participation

The Ministry of Statistics and Programme Implementation noted that while the LFPR remained relatively steady at 73.5% for males during this period, there was a notable increase for females, with their LFPR going up from 20.9% to 23.2%.

Worker-Population Ratio on the Rise

The Worker-Population Ratio (WPR) is another important indicator of the health of a nation’s labor market. In urban areas, the WPR increased from 43.9% in April-June 2022 to 45.5% in the same months of 2023 for individuals aged 15 years and above.

A Promising Shift in Employment

The rise in WPR signifies a positive trend in the proportion of the working-age population that is employed. The data shows that this improvement was seen in both genders, with the WPR for males increasing from 68.3% to 69.2%, and for females, it rose from 18.9% to 21.1%.

Decreasing Unemployment Rate

Perhaps the most encouraging finding from the PLFS is the decreasing trend in the Unemployment Rate (UR) for individuals aged 15 years and above. In urban areas, the UR decreased from 7.6% in April-June 2022 to 6.6% in the same period of 2023.

Balanced Decline in Unemployment

The report highlights that this decline was observed in both male and female unemployment rates. For males, the UR dropped from 7.1% to 5.9%, while for females, it decreased from 9.5% to 9.1%. This decline in unemployment is a positive sign for the Indian labor market, indicating that more people are finding gainful employment.

Comparing to Pre-Pandemic Levels

The government claims that the improvements in these key labor market indicators in urban areas are not just positive but also surpass pre-pandemic levels. Comparing the data to the period between April-June 2018 and October-December 2019, the LFPR ranged from 46.2% to 47.8%, while in the latest report, it reached 48.8%.

Pre-Pandemic Labor Market Recovery: Robust Gains

Similarly, the WPR was between 41.8% and 44.1% before the pandemic, but now it stands at 45.5%. The Unemployment Rate ranged between 7.8% and 9.7% in the pre-pandemic period, while the latest survey indicates a lower rate of 6.6%. According to the government, this is notably lower than the unemployment rates observed in the quarters covered in the pre-pandemic period.

Indications of Recovery and Growth

The decrease in the unemployment rate, the rise in the Labor Force Participation Rate, and the increase in the Worker-Population Ratio are indicative of an improving job market. Moreover, the government’s claim that these indicators have surpassed pre-pandemic levels suggests that India’s labor market has not only recovered but is also on a growth trajectory. These trends can be seen as a positive sign for the country’s economic stability and the well-being of its citizens.

Also check: NSO Periodic Labour Force Survey (PLFS) Annual Report Background

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