Periodic Labour Force Survey (PLFS) Enhancements

India's Ministry of Statistics and Programme Implementation has upgraded the Periodic Labour Force Survey (PLFS), initially launched in 2017 to replace quinquennial Employment-Unemployment Surveys, now offering more frequent and comprehensive labour market data.

Key Improvements

• Introduction of monthly PLFS data starting from April, providing more timely labour market insights.
• Enhanced sample design and increased sample size to 2,72,304 households, marking a 2.65 times increase compared to previous surveys.
• Transition of the primary geographical unit to the district level to improve representativeness.
• Annual reporting period now aligned to the calendar year, from January 2025.

Significance of Changes

• Monthly data enhances policy evaluation, especially during economic disruptions like pandemics or demonetisation.
• Improved credibility and timeliness of data critical for attracting global investors as India's economy grows.

Current Labour Market Statistics

• The overall unemployment rate in India is 5.1%.
• Urban unemployment is higher at 6.5%.
• Female unemployment in urban areas stands at 8.7%.
• Youth unemployment (ages 15-29) is alarming: 
  • All-India: 13.8%
  • Urban areas: 17.2%
  • Young urban women: 23.7%

The goal of these PLFS methodological improvements is to deliver more timely and reliable labor market data, which is crucial for international reporting and policymaking.