National Statistics Office (NSO) has announced a major revamp of the Periodic Labour Force Survey (PLFS), expanding its scope to include rural employment data for the first time.
The revised survey methodology, effective January 2025, aims to provide high-frequency labour market indicators with enhanced coverage, ensuring more comprehensive employment and unemployment statistics across India.
Previously, the PLFS provided quarterly labour market indicators only for urban areas, limiting insights into rural employment trends.
With this update, the survey will now generate monthly estimates of key labour indicators, including Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR), using the Current Weekly Status (CWS) framework.
Key Changes in the Periodic Labour Force Survey
The revamped PLFS sample design introduces several critical improvements to enhance the accuracy and frequency of labour market data:
- Monthly Estimates: Labour market indicators will now be published every month, allowing for timely policy interventions. The first monthly bulletin for April 2025 is scheduled for release in May 2025.
- Quarterly Reports for Rural Areas: Quarterly employment-unemployment estimates were previously restricted to urban areas. With the latest update, they will now include both rural and urban regions, offering a more comprehensive nationwide perspective. The first quarterly bulletin (April–June 2025) will be released in August 2025.
- Expanded Sample Size: The survey will now cover 22,692 First Stage Units (FSUs) annually, up from 12,800 FSUs surveyed until December 2024. This includes 12,504 FSUs in rural areas and 10,188 in urban areas, significantly improving data precision.
- Calendar Year Reporting: The PLFS annual results will now follow a January–December cycle, replacing the previous July–June reporting format. This change aligns India’s labour market statistics with international databases, ensuring better comparability.
Impact on Labour Market Analysis
The revamped PLFS is expected to enhance labour market insights, particularly in rural India, where employment trends have often been underrepresented in official statistics.
Expanding coverage will provide policymakers with real-time data to tackle employment challenges.
This data will also help refine job creation strategies and monitor economic shifts more effectively.
The revamped survey will now cover 2,72,304 households annually, significantly expanding its reach.
This 2.65-fold increase over previous surveys enhances statistical reliability and improves labour market analysis.
The Ministry of Statistics & Programme Implementation (MoSPI) highlighted that the revamped PLFS will offer more detailed insights into employment trends.
These improved insights will assist in shaping more effective labour policies.
Experts believe that monthly labour force data will be instrumental in tracking economic fluctuations, particularly in rural job markets.
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