About PLFS

• • In India, the National Statistical Office (NSO) has been quinquennially (over a period of five years) collecting data on employment and unemployment but from 2017 onwards, the Periodic Labour Force Survey (PLFS) was launched by the NSO to provide quarterly employment and unemployment data.

• The NSO is a wing of the Ministry of Statistics and Programme Implementation.

• Under the PLFS, households are selected in both rural and urban areas by providing 75 per cent weightage to households where at least one member has secondary education (Class 10) or above.
• PLFS is India’s first computer-based survey which gives estimates of Key employment and unemployment indicators such as:
  • Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the 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 the 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 of the person.
• The PLFS also gives the distribution of educated and unemployed people, which in turn can be used as a basis for skilling of youth to make them more employable by industry. 
• It also provides data on the earnings of different segments of workers. 

Objective of PLFS 

• The objective of PLFS is primarily twofold: 
  • to estimate the key employment and unemployment indicators in the short time interval of three months for the urban areas only in the Current Weekly Status.
  • to estimate employment and unemployment indicators in both Usual status and CWS in both rural and urban areas annually.

Why in News?

• Unemployment rate in urban areas for persons aged 15 and above has decreased to 6.7 per cent during the previous quarter January to March 2024. 
• The unemployment rate was 6.8 per cent during the corresponding period of last year. According to the Periodic Labour Force Survey quarterly bulletin (January to March 2024), the female unemployment rate decreased to 8.5 per cent.
• According to the survey, the Labour Force Participation Rate in urban areas has shown an increasing trend from 48.5 per cent to 50.2 per cent from January to March 2024 in comparison to the corresponding period of last year.
• In the same period, Female Labour Force Participation Rate in urban areas rose from 22.7 per cent to 25.6 per cent. 
• The survey highlights an increasing trend in the worker population ratio for persons of age 15 years and above to 46.9 per cent from 45.2 per cent. The female worker population ratio in urban areas also rises from 20.6 per cent to 23.4 per cent during the survey period.

https://www.newsonair.gov.in/unemployment-rate-in-urban-areas-dips-to-6-7-in-march-quarter-govt-survey/