PLFS Report, 2023-24

Syllabus: Economics, Employment

Source: TOI

Context: The National Statistical Office (NSO) recently released the Periodic Labour Force Survey (PLFS) report for 2023-24. It highlights key employment trends in India, including stagnating unemployment rates, increasing labor force participation, and the challenges of creating formal jobs despite significant economic growth.

Key Data Points:

• Unemployment rate: 3.2% in 2023-24, unchanged from 2022-23, the first time no year-on-year decline has been observed since the survey began in 2017-18.

• Labour force participation Rate (LFPR): Increased to 60.1% in 2023-24 (from 57.9% in 2022-23). Rural LFPR rose to 63.7%, and urban LFPR increased to 52%.

• Worker population ratio (WPR): WPR stood at 58.2%, with 76.3% for males and 40.3% for females.

• Unemployment by gender: Female unemployment increased to 3.2% (from 2.9%), while male unemployment slightly declined to 3.2% (from 3.3%).

• Urban-rural divergence: Rural unemployment increased slightly to 2.5% from 2.4%, while urban unemployment improved, falling to 5.1% from 5.4%.

• Increase in self-employment: The share of self-employed individuals rose to 58.4%, from 57.3% in 2022-23.

Positives and Negatives:

Positives | Negatives

Increase in Labour Force Participation Rate (LFPR) | Stagnant unemployment rate at 3.2%, raising concerns about job creation

Marginal improvement in job quality with salaried workers rising to 21.7% | High youth unemployment rate (10.2%), especially for females (11%)

Worker Population Ratio (WPR) increased to 58.2% | Increase in self-employment, much of it informal or unpaid work

Urban unemployment rate fell to 5.1% | Gender disparity: Female unemployment rose to 3.2% from 2.9%

Rising participation in the workforce post-pandemic | Challenges in creating formal jobs, pushing people into informal roles

Way ahead:

• Sectoral diversification: Investment in manufacturing, renewable energy, and tech innovation to generate productive and higher-wage jobs.

• Strengthening MSMEs: Provide targeted financial support and regulatory ease to help MSMEs recover and boost employment.

• Human-centric tech adaptation: Focus on labor-intensive sectors like healthcare and sustainable manufacturing, which are less prone to automation.

• Industry-aligned skilling: Align skilling programs with emerging sectors like AI, green jobs, cybersecurity, and data analytics.

• Encouraging high-potential services: Focus on sectors like e-commerce, logistics, and online education to create employment opportunities across skill levels.

Conclusion:

The PLFS 2023-24 report presents a mixed picture, with positive indicators like rising labor participation and declining urban unemployment. A focused, sector-specific approach and industry-aligned skilling are crucial to ensuring sustainable job creation and economic growth in the future.

Insta Links:

• PLFS- 2022-23

• India Employment Report, 2024

• Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC-2023)

• “Success of ‘Make in India’ program depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. (UPSC-2015)