What is PLFS?
The Periodic Labour Force Survey (PLFS) is a nationwide survey that provides comprehensive and detailed information on employment, unemployment, and labor force participation in India. It is conducted by the Ministry of Statistics and Program Implementation and stands as one of the most crucial sources of data on the Indian labor market.
Observations:
Increase in Labor Force Participation Rate (LFPR): The labor force participation rate, which measures the percentage of the population either working or actively looking for work, grew in both rural and urban areas from 47.1% to 49.4% in 2022–2023 and from 48.9% to 56.7% in 2017–18. This suggests that people are becoming more eager to enter the workforce.
Rise in Worker Population Ratio (WPR): It shows the percentage of the working-age population that is employed, which went up from 42.6% to 46.0% in urban areas and from 44.8% in rural areas to 54.2% in 2022–2023. This implies that job prospects are getting better all around the nation.
Improvement in Gender Parity in LFPR and WPR: In rural areas, the LFPR for females increased from 21.1% in 2017–18 to 31.6% in 2022–23, and in urban areas, it increased from 19.2% to 30.0%. In a similar vein, the WPR for women grew in both rural and urban areas, rising from 19.2% in 2017–18 to 30.0% in 2022–2023 and from 17.8% to 26.2%, respectively. This suggests that the gender disparity in employment and labor force participation is gradually closing.
Unemployment Situation: In 2022–2023, the unemployment rate in India was 6.6%. Even though the unemployment rate has been trending downward over time, it is still a concern, especially for young people.
Sectoral Distribution of Employment: According to the report, 50.8% of all jobs in rural areas in 2022–2023 were related to agriculture, demonstrating the sector’s major contribution to employment in these areas. With 67.5% of all jobs in urban areas in 2022–2023 coming from the service sector, this industry has become the biggest employer in urban areas.
Informal Employment: In India, most jobs are still considered informal because they don’t have formal contracts, social security benefits, or set pay. In 2022–2023, informal employment accounted for 90.3% of all employment in rural areas and 78.4% of all employment in urban areas.
What is LFPR?
It is a measure that represents the percentage of the working-age population aged 16 and above that is either employed or actively seeking employment.
Key Highlights of the PLFS Annual Report 2022-2023
Employment Trends:
• In the years 2022–2023, India’s total labor force participation rate (LFPR) increased to 56.4% from 50.3% in 2017–18. This implies that a higher proportion of individuals are actively seeking employment.
• The rural LFPR increased from 50.7% to 60.8%, while the urban LFPR increased between 47.6% and 50.4%. This suggests that employment prospects are increasing in both rural and urban areas.
• The female labor force participation rate (LFPR) demonstrated a significant rise in female participation, rising from 23.3% to 37.0%.
Workforce Composition:
• The share of employment in agriculture decreased from 45.7% in 2017–18 to 39.3% in 2022–2023, and the share in manufacturing and construction increased. This demonstrates a gradual shift away from the agricultural industries.
• While the percentage of casual laborers decreased from 44.8% to 41.2%, the percentage of non-regular employees increased from 24.1% to 26.7%. This points to a move toward more secure and stable work arrangements.
Labor Force Participation Rate (LFPR):
• Overall LFPR increased from 57.0% in 2017-18 to 59.9% in 2022-23.
• For males, LFPR increased from 75.1% to 77.4%.
• For females, LFPR increased from 21.1% to 31.6%.
• LFPR in rural areas increased from 48.9% to 56.7%.
• LFPR in urban areas increased from 47.1% to 49.4%.
Work Participation Rate (Working Population Rate):
• Overall WPR increased from 54.2% in 2017-18 to 56.0% in 2022-23.
• For males, WPR increased from 68.6% to 73.5%.
• For females, WPR increased from 19.2% to 30.0%.
• WPR in rural areas increased from 44.8% to 54.2%.
• WPR in urban areas increased from 42.6% to 46.0%.
Employment Status:
- The share of regular salaried employees increased from 21.9% to 23.4%.
- The share of casual laborers increased from 23.7% to 25.7%.
- The share of self-employed persons decreased from 54.4% to 50.9%.
Overall Employment Trends: - The Working-Age Population in India increased from 69.3% in 2017-18 to 74.1% in
2022-23. - The Unemployment Rate in India decreased from 5.3% in 2017-18 to 4.2% in 2022-23.
- The average monthly earnings for employed people increased from Rs. 14,086 in
2017-18 to Rs. 18,922 in 2022-23. - The percentage of employed persons working in the informal sector decreased from
81.2% in 2017-18 to 77.1% in 2022-23