Periodic Labour Force Survey (PLFS)

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) released July 2025 Periodic Labour Force Survey (PLFS) data showing India’s unemployment rate fell to 5.2%. The first-ever revamped quarterly PLFS also revealed state-level estimates, with Himachal recording highest youth unemployment (29.6%) and Gujarat the lowest (5.6%).

Description:

• Launched: April 2017 by National Statistical Office (NSO) under MoSPI.
• Objective: To provide reliable, timely and frequent data on employment–unemployment in India.
• Replaced the earlier Employment-Unemployment Surveys (EUS) conducted by NSSO once every 5 years.

About NSO

• Formed in 2019 by merging:
  • National Sample Survey Office (NSSO)
  • Central Statistics Office (CSO)
• Works under the Ministry of Statistics & Programme Implementation (MoSPI).
• Functions: Sets standards, methodology, definitions, data collection, processing & dissemination.

Objectives of PLFS

1. Urban Areas (Quarterly):
   1. Provide estimates of labour force indicators based on Current Weekly Status (CWS).
   1. Captures short-term labour market dynamics.
2. Rural + Urban Areas (Annual):
   1. Provide employment & unemployment estimates based on both Usual Status and CWS.
   1. Captures long-term employment trends.

Key Concepts:

1. Labour Force = People ≥ 15 years, either: Employed, or Unemployed but willing & actively looking for work.
2. Labour Force Participation Rate (LFPR):  {LFPR} ={Labour Force}}\frac{{ Working-age population (15+)}}
3. Unemployment Rate (UER): {UER} = \frac{{Unemployed}}{{Labour Force}} \times 100
4. Current Weekly Status (CWS):
   1. Reference period = 7 days preceding the survey.
   1. A person is unemployed if he/she did not work even 1 hour during the week but was seeking/available for work.
5. Usual Status:
   1. Reference period = 365 days preceding the survey.
   1. Classifies a person based on their activity for the majority of the year.

July 2025 PLFS (MoSPI) data:

Overall Unemployment (15+ yrs):

• 5.2% (↓ from 5.6% in June 2025)
• Rural: 4.4%
• Urban: 7.2%

Gender-wise:

• Male: 5.3%
• Female: 5.1% (↓ from 5.6% in June)

Labour Force Participation Rate (LFPR):

• Total: 54.9% (↑ 70 bps from June)
• Male: 77.1% (unchanged)
• Female: 33.3% (↑ 130 bps)

Youth Unemployment (15–29 yrs):

• All-India: 14.9% (↓ 40 bps)
• Rural: 13% (↓ 80 bps)
• Urban: 19% (↑ 20 bps)

Quarterly (Apr–Jun 2025):

• Overall: 5.4%
• Highest: Rajasthan – 8.8%
• Lowest: Gujarat – 2.2%
• Youth (15–29 yrs): Himachal – 29.6% (highest); Gujarat – 5.6% (lowest).

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