That was more than five years ago and PLFS has come to be widely relied on data on one of the most important socio-political aspects of a developing country like India—unemployment—especially in lieu of the decennial Census not being conducted. This article aims to give an overview of the some of the key findings of the recent PLFS survey and the implications for the country. Before that, a brief background into various concepts is necessary.

Brief background

Labour Force Participation Rate: Defined as number of persons/ person-days in the labour force per 1000 persons/person-days, it is indicative of people who are seeking to work/working in the total Working Age Population. Working Age Population usually means people from the ages of 15 to 65.

Worker Population Ratio: Percentage of employed persons in the overall population.

Unemployment Rate: Percentage of unemployed among the labour force.

Activity Status-Usual Status: Activity Status of a person-determined on the basis of the activities pursued by a person during the specified reference period in this case 365 Days; Determined on the basis of usual principal activity and usual subsidiary economic activity of a person—PS + SS.

Activity-Current Weekly Status: Activity Status determined on the basis of reference period of last seven days preceding the date of survey—CWS.

 Key Indicators of unemployment

Table 1 Key Indicators of Unemployment, PLFS 2023-24.
Source: PLFS Annual Reports-2021-22;2022-23;2023-24.

Significant gender disparities in LFPR and WPR

The data for 2023-24 reveals significant insights into India’s labour market, particularly highlighting the disparity between Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR). LFPR, which measures the proportion of people actively engaged in or seeking work, is notably high in both rural and urban areas for males, with rural male LFPR at 84.3% and urban male LFPR at 81.9%. However, female LFPR lags far behind, especially in urban areas where it stands at only 31.2%. This suggests that despite economic growth and urbanisation, social and structural barriers continue to restrict women’s access to the labour market, especially in cities where opportunities are concentrated.

However, despite the relatively high LFPR, the Worker Population Ratio (WPR)—which measures the proportion of the population that is actually employed—paints a different picture. WPR for all ages is significantly lower across the board, especially for females, with rural female WPR at just 34.8% and urban female WPR at a strikingly low 20.7%. The gap between LFPR and WPR indicates that a substantial portion of those who are seeking work are not able to find it, leading to a mismatch in labour demand and supply. This could point to structural unemployment, underemployment, or job market barriers, especially for women. The overall WPR of 45.6% in rural areas and 38.9% in urban areas further underscores that the economy is not generating enough jobs relative to the number of people willing to work.

This discrepancy is particularly concerning in a developing country like India, where rapid population growth and urban migration are placing increasing pressure on labor markets. Despite the high LFPR, especially among men, the inability to translate participation into actual employment, as indicated by the lower WPR, highlights deep inefficiencies in the job market. Women, both rural and urban, face additional challenges, and this could explain their lower participation and employment rates.

Education and unemployment

In rural India, the data shows that the labour force participation rate(LFPR) for persons of age 15 years or above of different level of education is highest for diploma/certificate course—83%— i.e., those who have a diploma/certificate course are interacting with the labour market at a higher rate than those at Postgraduate and higher level being at 78.1%.

In urban India too, this trend appears, albeit at a total of lesser percentage of people interacting with labour market. Only LFPR of the Diploma/Certificate Course finishers is 78%, followed by the LFPR of people who are post graduate and above being 67.3%.

The overall LFPR for holders of Diploma/Certificate—Urban and Rural—is 80.6% while it is 71% for postgraduate and above.

The story of Women-both in terms of Diploma Course and PG Course is grim.

The LFPR of Males overall for Diploma/Certificate Course is 89.3% while it is 89.4 % for Postgraduate and Above. On the contrary, the LFPR for Females who have done Diploma Courses is only 55.8%; it is 51.1% for women in Postgraduate and above.
Essentially, despite being equipped with similar education-at higher level or even technical-women are interacting way less with the labour market than men do.

Trends over the past three Years can be found here.

Table 2.0: Data of Employment Indicators for the years 2021-22, 2022-23 and 2023-24.

Source: PLFS Annual Reports-2021-22;2022-23;2023-24.

The data over the past three years reveals a consistent increase in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) for both rural and urban women across all age groups between 2021-2024, particularly for rural women. The LFPR for rural women in the 15 years and above category rose significantly from 36.6% in 2021-22 to 47.6% in 2023-24, while urban women saw a more modest rise from 23.8% to 28% during the same period. This suggests greater integration of women into the labour force, with rural areas witnessing a more pronounced shift, likely due to a combination of economic necessity and possibly greater access to employment opportunities outside traditional agriculture.

On the other hand, despite these gains, the unemployment rate for urban women remains higher compared to their rural counterparts. For instance, in the 15-29 years age group, the unemployment rate for urban women stood at 20.1% in 2023-24, whereas rural women had a lower unemployment rate of 8.2%. This disparity hints at structural challenges in urban areas, where higher female participation does not necessarily translate into employment, possibly due to skill mismatches or fewer suitable job opportunities. The rural-urban divide in both labor participation and unemployment highlights the differing socio-economic conditions that affect women’s integration into the workforce across regions.

Conclusion

Despite progress in education and qualifications, female labour force participation, especially in urban areas, remains significantly lower than that of men. This points to enduring social, structural, and economic barriers that hinder women’s full participation in the workforce.

At the same time, the overall Worker Population Ratio (WPR) and Unemployment Rate (UR) figures reveal a mismatch between the number of people seeking work and those actually employed. While labour force participation, particularly among men, has remained relatively high, the economy struggles to generate sufficient employment opportunities, as evidenced by lower WPRs and higher unemployment rates, particularly for young people and women.

While the PLFS data shows incremental improvements in certain areas, it underscores the need for targeted policies to bridge the gender gap in employment, address underemployment, and create more equitable labor market opportunities. Achieving sustainable economic development in India will require a comprehensive approach that fosters job creation, ensures gender inclusivity, and aligns educational outcomes with employment opportunities.

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The post Young persons & women among the most acutely unemployed: PLFS Annual Report, 2024 appeared first on SabrangIndia.

Most of the new jobs are distress-driven, while the data shows that the average earnings of the entire workforce, together, are going up. Is, however, these are broken down into different categories, we observe that real earnings are going up only for casual work. In other categories earnings are either stagnating or going down in real terms. Besides, the percentage of employers, the job givers, is stagnating.

These were the conclusions of a two-day conference on finance and economy with the theme ‘Measuring Recovery’, held in Delhi, organised by Centre for Financial Accountability, Economic Research Foundation and Focus on the Global South.

“The type of job that constitutes the highest share of the workforce is not just hugely precarious in its nature, but also the real earnings from the job have not seen any rise,” Mrinalini Jha, OP Jindal Global University said.

“Now we have to challenge labour statistics as well! The way these have been twisted, to show that there is no problem of female unemployment. Now we have begun counting unpaid domestic work, but to what end, does this actually empower women? If we really care about their work, we must invest in infrastructure that supports them like childcare facilities, but our interest lies in just counting their work, and driving up employment figures,” Dipa Sinha, Ambedkar University said, alluding to the employment data of the government.

Different sessions at the conference discussed issues like official Claims on Recovery, unequal K-shaped recovery, corporate write-offs and rural debt crisis, labour, wages and social protection, Muslims and financial recovery. Eminent economists and activists including Arun Kumar, retired Professor of Economics, Jawaharlal Nehru University;

CP Chandrashekhar, retired Professor of Economics & Economic Research Foundation; Nandini Nayak, Assistant Professor at the School of Development Studies, Ambedkar University Delhi; Paranjoy Guha Thakurta, Senior journalist; Surajit Mazumdar, Professor, CESP, JNU; Devidas Tuljapurkar, Joint Secretary of the All India Bank Employees Association; Thomas Franco, Former General Secretary All India Bank Officers Confederation; Arvind Pandey, Asst Professor, TISS, Hyderabad; Dipa Sinha, Asst Professor, Ambedkar University Delhi; Praveen Jha, Professor, CESP, JNU; Chirashree Dasgupta, Associate Professor, JNU; Ritwick Dutta, Founder of LIFE; Manshi Asher, Environmental justice activist and Ghazala Jamil, Asst Professor JNU spoke at various sessions.

“Government’s exaggerated claims about India’s rapid growth are echoed even by the UN and IMF, relying on the government-provided data. But their data collection method is deeply flawed. New indicators are required based on fresh surveys. But no new survey of the unorganised sector has been conducted since 2015,” said black money expert and economist,

Prof. Arun Kumar at the conference. “There is a recognition on the part of the Reserve Bank of India (EBI) in recent times of the global headwinds we are faced with. These include challenges of a daunting cost of living crisis, high levels of sovereign debt, tight financial conditions, uncertainties of war, climate crisis and so on. And yet, there is a rather celebratory note in the self-appraisal of the government in terms of India’s economic recovery,” said Prof Kumar busting the claims of the government about economic recovery.

Senior economist CP Chandrashekhar spoke about a peculiar inflationary rise in India driven by two large contributors comprising oil and food that have added to the woes of the people. He also spoke of the large amount of money that came into lower middle-income countries, which ultimately has resulted in rising debt.

Speaking in a session about ‘unequal recovery and its costs,’ Journalist Paranjoy Guha Thakurta said, “We have gone one step further from cronyism. The nexus between governments and conglomerates has been strengthened like never before. We are moving towards oligarchy.”

The session titled ‘Fractured Recovery – Socio- Economic’ toll of Divisive Politics’ shed light on the impact of divisive politics on the lives and economic opportunities available for the Muslim community, focusing on how Muslims are ghettoized, not just in terms of their living spaces in cities but also as segments of the labour market.

The conference also marked the release of the second edition of the State of Finance in India report. Edited by CP Chandrashekhar, Jayati Ghosh, Shalmali Guttal, Joe Athialy and Anirban Bhattacharya and published by Yoda Press, the report is a first of its kind that expands the domain of finance and economics beyond the confines of ivory tower experts. The report invites writings from a cross section of academics, policy makers, activists, social practitioners and eminent economists who engage with questions from the ground.

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The post Claims of employment rate increase a sham: Economists appeared first on SabrangIndia.

 
Ahead of the election to the state’s assembly on May 12, 2018, we compared Karnataka’s performance on 15 socio-economic and health-related indicators–sourced from National Family Health Surveys 2005-06 (NFHS 3) and 2015-16 (NFHS 4), Ministry of Statistics & Programme Implementation and Ministry of Labour and Employment–with nine other states. Some highlights:
 

• Among the states, Karnataka has the country’s second lowest unemployment rate, behind only Gujarat. Karnataka’s per capita income ranks fourth among the 10 states considered for the analysis;
• Karnataka’s infant mortality rate declined from 43.2 deaths per 1,000 live births in 2005-06 to 26.9 in 2015-16, ranking fifth among the 10 states analysed;
• In 2015-16, 49.3% women in Karnataka were involved in household decision-making, better only than Bihar, Telangana and Mizoram;
• In 2015-16, 62.6% children (12-23 months) in Karnataka received all basic vaccinations, up from 55% in 2005-06. Karnataka ranks fifth among the 10 states considered for the analysis.

 
For our analysis, we chose south Indian states Tamil Nadu, Andhra Pradesh and Kerala, development leaders Goa, Gujarat and Maharashtra and laggards Madhya Pradesh, Rajasthan and Uttar Pradesh.
 
For the period of analysis (2005-06 to 2015-16), the Bharatiya Janata Party (BJP) governed Karnataka for seven years until Congress took over in 2013–the last assembly elections. Of the other nine states, six–Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Goa and Gujarat–currently have BJP governments. Kerala has the government of Left Democratic Front, while Tamil Nadu and Andhra Pradesh are ruled by the All India Anna Dravida Munnetra Kazhagam and Telugu Desam Party, respectively.
 
Karnataka has among country’s lowest child mortality rates
 
In 2015-16, Karnataka’s infant mortality rate (IMR)–the probability that a child born in a particular year will die before reaching the age of one–was 26.9 per 1,000 live births, down from 43.2 in 2005-06. Karnataka’s IMR was lower than the national average (40.7) and ranked fifth among the 10 states considered for the analysis.
 
At 31.5 deaths per 1,000 live births, the state’s under-five mortality rate also ranked fifth among the 10 states–worse than Kerala, Goa, Tamil Nadu and Maharashtra.

Source: National Family Health Survey 2015-16; Figures in deaths per 1,000 live birth
 
In 2015-16, 62.6% children–just above the national average of 62%–aged 12-23 months received all basic vaccinations in Karnataka, up from 55% in 2005-06, according to national health data.
 
To have received all basic vaccinations, a child must receive at least one dose of BCG vaccine, which protects against tuberculosis, three doses of DPT vaccine, which protects against diphtheria, pertussis (whooping cough), and tetanus, three doses of polio vaccine and one dose of measles vaccine.

 
Karnataka ranked fifth among the 10 states considered for the analysis.
 
Karnataka lags poorer states on women empowerment
 
More than 50% women in Karnataka were not involved in household decision making, according to national data. This includes decisions regarding one’s own healthcare, major purchases, daily household purchases and the decision to visit her family or relatives.
 
At 49.3%, Karnataka’s figure–lowest among the 10 states evaluated–is nearly 10 percentage points below the national average (59.2%), and is better only than that of, as we said, Bihar, Telangana and Mizoram.

 
In 2015-16, 58.1% women said it is justified for a husband to hit/beat his wife for any one of seven stated reasons—going out without telling him, neglecting the house or children, arguing with him, refusing sex, not cooking properly, showing disrespect for in-laws or if he suspects she is unfaithful. This was more than the national average of 51.7%, and worse than poorer states such as Uttar Pradesh (51.3%), Bihar (53.4%) and Rajasthan (33.4%).
 
In the same year, 57.5% men in Karnataka said it was justified, more than the national average of 42.2%, and worse than poorer states such as Uttar Pradesh (41.6%0, Bihar (38.1%) and Rajasthan (30.4%).
 
Over the decade to 2015-16, the percentage of ever-married women (15-49 years) who have ever faced emotional, physical or sexual violence by husband/previous partners in Karnataka rose from 21.5% in 2005-06 to 24.4%. Though this is lower than the national average (31%), it was higher than in Goa, Kerala, Gujarat and Maharashtra among the 10 states selected.

 
In 2015-16, 32.7% women (15-64 years) in Karnataka were part of the labour force, higher than the national average female labour force participation of 23.7%, according to the Ministry of Labour and Employment’s Fifth Annual Employment-Unemployment Survey 2015-16.
 
Karnataka is ranked fourth on this indicator among the 10 states considered for the analysis–behind Andhra Pradesh, Tamil Nadu and Maharashtra.

 
Seven in 10 Karnataka women are literate, nearly one in two complete 10 years’ education
 
In 2015-16, Karnataka’s female literacy rate (71.7%) ranked sixth among the 10 states, better only than Andhra Pradesh, Uttar Pradesh and Madhya Pradesh. The state ranked 23rd of 36 states and union territories nationwide.
 
Meanwhile, 45.4% women in the state completed 10 or more years of education–behind Kerala, Goa and Tamil Nadu–data from NFHS-4 show.
 
While 85.1% men in Karnataka were literate in 2015-16, 55.2% completed 10 or more years of education, data show.

Source: National Family Health Survey 2015-16
 
Overall, 87.9% of Karnataka’s children aged 6-17 years were attending school in 2015-16, up from 73.3% a decade ago. Karnataka ranks fourth among the 10 states on this parameter.
 
Karnataka lags poorer states in access to drinking water and household toilets
 
In 2015-16, 89.3% households in Karnataka had access to an improved source of drinking water–including piped connections, public taps, tubewells or boreholes, protected dugwells and springs, rainwater or community reverse osmosis plant. The state ranked seventh of 10 states analysed.
 
Meanwhile, 65.8% households in Karnataka had a toilet facility–up from 46.5% in 2005-06–ranking fifth among 10 states considered for the analysis.

Source: National Family Health Survey, 2015-16
 
Karnataka has India’s second-lowest unemployment rate
 
At 1.5%, Karnataka’s unemployment rate in 2015-16 was India’s second-lowest, behind only Gujarat, according to data from the ministry of labour and employment. The national average was 5%.
 
The state’s per capita income in 2014-15–year for which latest state-wise data were available–was Rs 125,832, more than the national average of Rs 86,454 that year. Karnataka ranked fourth among the 10 states evaluated.

(Tripathi is a principal correspondent with IndiaSpend.)

Courtesy: India Spend

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