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Periodic Labour Force Survey

Context:

The National Statistical Office (NSO) has released the latest Periodic Labour Force Survey (PLFS), which shows that the unemployment rate increased dramatically during the statewide lockdown in 2020 during the first wave of the pandemic.

Relevance:

GS III- Indian Economy (Employment)

Dimensions of the Article:
  1. Key Employment and Unemployment Indicators
  2. What is the Periodic Labour Force Survey?
  3. Types of Unemployment in India
  4. Causes of Unemployment in India

Key Employment and Unemployment Indicators

  • 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.

What is the Periodic Labour Force Survey?

  • Nodal for the Periodic Labour Force Survey (PLFS) is the Ministry of Statistics.
  • In April 2017, the National Statistical Office (NSO) introduced the Periodic Labour Force Survey (PLFS).
  • The primary goal of PLFS is two-fold:
    • To estimate key employment and unemployment indicators (such as the Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate) in the Current Weekly Status (CWS) for urban areas only in a short time interval of three months.
    • To estimate employment and unemployment indicators in both usual status (ps+ss) and CWS in both rural and urban areas on an annual basis.

Types of Unemployment in India

  • Disguised Unemployment: This is a situation in which more people are employed than are required. It is mostly seen in India’s agricultural and unorganised sectors.
  • Seasonal unemployment: Unemployment that happens only during particular seasons of the year. In India, agricultural labourers rarely work throughout the year.
  • Structural Unemployment: This is a type of unemployment that occurs when there is a mismatch between the jobs available and the abilities of the available workers.
  • Cyclical unemployment: Unemployment that rises during recessions and falls with economic expansion. It is mostly a phenomenon of capitalist economies.
  • Frictional Unemployment:  It is also known as Search Unemployment, is the time lag between jobs when someone is looking for a new job or moving jobs.

Causes of Unemployment in India

  • Jobs in the capitalist world have become highly specialised but India’s education system does not provide the right training and specialisation needed for these jobs.
  • In India nearly half of the workforce is dependent on Agriculture – even though agriculture is underdeveloped in India and only provides seasonal employment.
  • Mobility of labour in India is low due to factors like language, religion, and climate.
  • The industrial development had adverse effects on cottage and small industries – as the cottage industries fall, many artisans become unemployed.
  • Constant increase in population has been a big problem and one of the main causes of unemployment.
  • Certain work is prohibited for specific castes in some areas and this also contributes to unemployment.

-Source: Indian Express

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