Periodic Labour Force Survey 2022

• The Periodic Labour Force Survey (PLFS) was just released by the National Statistical Office (NSO).
• In metropolitan areas, the unemployment rate decreased from 9.8% in July-September 2021 to 7.2% in July-September 2022.

What are the main conclusions of the PLFS (July–September 2022)?

• Unemployment Ratio: The percentage of unemployed people among those who are eligible for employment is referred to as the unemployment ratio.
• 6.6% of males and 9.4% of women were unemployed (compared to 9.3% and 11.6% in July-September 2021).
• Worker-Population Ratio (WPR): The WPR is the proportion of the population that is employed.
• In urban areas, the WPR for people 15 and older was 44.5% (down from 42.3% in July–September 2021).
• In comparison to 66.6% and 17.6% in 2021, the WPR for males was 68.6% and 19.7% for women.
• The labour force participation rate (LFPR), for those aged 15 years and over who live in urban areas, is the proportion of the population that is employed, actively looking for work, or otherwise available for employment.
• It grew to 47.9% from 46.9% during July and September of 2021.
• The LFPR for men was 73.4%, and for women it was 21.7% (compared to 73.5% and 19.9% from July to September 2021).

About The Periodic Labor Force Survey:

• The Periodic Labour Force Survey (PLFS) was introduced in April 2017 by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation, in recognition of the significance of the availability of labour force data at increasingly frequent time intervals.
• The two main goals of PLFS are as follows:
• To calculate the important employment and unemployment indicators (i.e., worker population ratio, labour force participation rate, and unemployment rate) over a short period of time (i.e., three months) for urban regions exclusively in the Current Weekly Status (CWS).
• to annually estimate employment and unemployment data in both urban and rural areas under Usual Status and CWS.

What Is Unemployment?

• When someone who is actively looking for work is unable to find employment, they are said to be unemployed.
• The rate of unemployment is frequently used to gauge the state of the economy.

NSO bases its definitions of employment and unemployment on an individual's activity status as described below:

• Working, or "Employed," means participating in economic activities.
• unemployed, available or looking for work.
• The first two make up the labour force, while the unemployment rate is the proportion of workers that are unemployed.
• The unemployment rate is equal to 100 divided by the number of unemployed workers.

What Kinds of Unemployment Are There?

Disguised Unemployment

• A condition known as "disguised unemployment" occurs when more people are working than are actually required.
• It is largely found in India's unorganised and agricultural sectors.
• Unemployment that happens only during specific times of the year is known as seasonal unemployment.
• Indian farm workers seldom ever have consistent employment throughout the year.

Structural unemployment

• It is a type of unemployment caused by a skill gap between the market's available workers and the jobs they are qualified for.
• Due to their inadequate education levels and lack of necessary skills, a large number of people in India struggle to find employment.

Cyclic Unemployment

• As a result of the business cycle, there is cyclical unemployment, which rises during recessions and diminishes with economic expansion.
• In India, cyclical unemployment rates are minuscule. It is mostly a phenomenon in capitalist economies.

Technological unemployment:

• It is the loss of jobs as a result of technological advancements.
• According to World Bank data from 2016, 69% more jobs in India were expected to be endangered by automation than the previous year.

Frictional Unemployment:

• The term "frictional unemployment," sometimes known as "search unemployment," describes the period of time between jobs while an individual is looking for a new position or changing jobs.
• In other words, because an employee needs time to look for a new job or transition from one position to another, frictional unemployment results from this inevitable time delay.
• People who work informally, without official job contracts, and without any legal protection are said to be in vulnerable employment.
• Since no records of their employment are ever kept, these people are considered to be "unemployed."
• One of the primary categories of unemployment in India is this one.

What are the main reasons behind India's unemployment?

• Social Factors: The caste system is widely used in India. In some places, people of certain castes are not allowed to work.
• There will be a large number of people in large joint families with significant businesses who do not work and are dependent on the combined income of the family.
• Rapid Population Growth: In India, the ongoing population growth has been a major issue.
• It is a significant contributor to unemployment.
• Agriculture still accounts for a large portion of employment in India, at close to 50%.
• However, India's agricultural sector remains undeveloped.
• Additionally, it offers temporary work.
• Fall of Cottage and Small Industries: Cottage and Small Industries were negatively impacted by industrial expansion.
• Many craftspeople lost their jobs as cottage industries' output started to decline.
• Labor Immobility: India has a low rate of labour mobility. People don't travel far for employment since they are attached to their families.
• Low mobility is also caused by elements like language, religion, and climate.
• Defects in the Educational System: In the capitalist world, employment have evolved into highly specialised fields, but India's educational system does not offer the appropriate specialisation and training for these positions.
• As a result, a lot of people who want to work are unable to get employment due to a lack of skills.