In the ever-evolving landscape of India's economy, understanding the pulse of the labor market is crucial for policymakers, businesses, and citizens alike. The Periodic Labour Force Survey (PLFS) serves as a vital tool in this regard, offering a comprehensive snapshot of employment trends across the nation. The latest annual report, covering the period from July 2023 to June 2024, paints an intriguing picture of India's workforce dynamics, revealing both progress and persistent challenges.

What is the PLFS?

The Periodic Labour Force Survey (PLFS) is a significant initiative by the National Sample Survey Office (NSSO) that aims to provide timely and accurate data on the employment and unemployment conditions in India. Launched in 2017, the survey is conducted annually and quarterly, providing an in-depth analysis of labor market dynamics across various demographics.

The PLFS was developed to bridge the data gap in employment and unemployment statistics in India. It provides estimates on the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) across different segments of the population.

Key Findings and Analysis

The key findings of the Periodic Labour Force Survey (PLFS) annual report for duration July2023 - June 2024 are as follows :

The Labour Force Participation Rate (LFPR)

The Labour Force Participation Rate (LFPR) is the percentage of people aged 15 and above who are either working or actively looking for work. This rate is a key indicator of the availability of labor in the economy.
 

• Increasing Trend in Labour Force Participation Rate (LFPR) for persons of age 15 years and above. In urban areas, the LFPR went from 47.6% to 52.0%, whereas in rural regions it increased from 50.7% in 2017–18 to 63.7% in 2023–24. In India, the LFPR for men climbed from 75.8% in 2017–18 to 78.8% in 2023–24, while the similar increase for women was from 23.3% to 41.7%.

• Labour Force Participation Rate (LFPR) in usual status (ps+ss) for persons of age 15 years and above was 60.1% during July 2023 - June 2024. The same for male and female was 78.8% and 41.7% respectively.

• Overall LFPR in usual status (ps+ss) for persons of age 15 years and above has increased from 57.9% during July 2022 – June 2023 to 60.1% during July 2023 – June 2024. LFPR for female of age 15 years above in usual status (ps+ss) has increased from 37.0% during July 2022 – June 2023 to 41.7% during July 2023 – June 2024.  For male of the same age group LFPR in usual status (ps+ss) increased from 78.5% to 78.8% during the same time span.

• Increasing Trend in Labour Force Participation Rate (LFPR) for persons of age 15 years and above.

• In rural areas, LFPR for current weekly status (CWS) increased from 48.9% in 2017-18 to 58.9% in 2023-24 while for urban areas it increased from 47.1% to 50.8%. LFPR for male in India increased from 75.1% in 2017-18 to 77.5% in 2023-24 and corresponding increase for female was from 21.1% to 35.6%

Worker Population Ratio (WPR)

The Worker Population Ratio (WPR) is a measure of the percentage of the working-age population that is actually employed or actively seeking employment.

• Worker Population Ratio (WPR) in usual status (ps+ss) for persons of age 15 years and above was 58.2% during July 2023 – June 2024. The same for male and female was 76.3% and 40.3% respectively. 

• WPR in usual status (ps+ss) among female of age 15 years and above has shown an increase from 35.9% during July 2022 – June 2023 to 40.3% during July 2023 – June 2024. The overall WPR among persons of the same age group in usual status (ps+ss) has increased from 56.0% during July 2022 – June 2023 to 58.2% during July 2023 – June 2024.

• Increasing Trend in Worker Population Ratio (WPR) for persons of age 15 years and above.

• WPR rose from 48.1% in 2017–18 to 62.1% in 2023–24 in rural regions and from 43.9% to 49.4% in urban areas. WPR for male in India increased from 71.2% in 2017-18 to 76.3% in 2023-24 and corresponding increase in WPR for female was from 22.0% to 40.3%.

• Increasing Trend in Worker Population Ratio (WPR) for persons of age 15 years and above.

• WPR rose from 42.6% to 47.4% in urban areas and from 44.8% to 56.5% in rural areas between 2017–18 and 2023–24. WPR for male in India increased from 68.6% in 2017-18 to 73.8% in 2023-24 and corresponding increase for female was from 19.2% to 33.8%.

Unemployment Rate

• Decreasing Trend in Unemployment Rate (UR) in usual status for persons of age 15 years and above

In rural areas, UR decreased from 5.3% in 2017-18 to 2.5% in 2023-24 while for urban areas it decreased from 7.7% to 5.1%. In India, the UR for men dropped from 6.1% in 2017–18 to 3.2% in 2023–24, while the UR for women went from 5.6% to 3.2% in the same period.

• Decreasing Trend in Unemployment Rate (UR) in CWS for persons of age 15 years and above

In rural areas, UR decreased from 8.4% in 2017-18 to 4.2% in 2023-24 while for urban areas it decreased from 9.5% to 6.7%. UR for male in India decreased from 8.7% in 2017-18 to 4.8% in 2023-24 and corresponding decrease for female was from 9.0% to 5.0%.

• Unemployment Rate (UR) in usual status (ps+ss) was 3.2% for both male and female of age 15 years and above during July 2023 – June 2024. In contrast to the male population, which saw a little dip from 3.3% between July 2022 and June 2023 to 3.2% between July 2023 and June 2024, the female population saw an increase from 2.9% to 3.2% during the same time period.

Conclusion

The Periodic Labour Force Survey Report for July 2023 – June 2024 presents a positive outlook for India’s labor market, with increasing labor force participation, especially among women, and a decreasing unemployment rate. The significant increase in labor force participation, especially among women and in rural areas, is a testament to the changing face of India's workforce. This shift could potentially lead to more inclusive economic growth and help harness India's demographic dividend.

However, challenges such as youth unemployment and regional disparities persist, requiring targeted policy interventions. The persistent urban-rural divide in employment metrics and the slight uptick in female unemployment rates highlight the need for targeted policy interventions. As India continues its journey towards becoming a global economic powerhouse, addressing these disparities will be crucial for sustainable and equitable growth.

Looking ahead, policymakers and business leaders should focus on:

• Sustaining and accelerating female workforce participation through supportive policies and workplace reforms.
• Bridging the urban-rural employment gap by promoting balanced regional development.
• Investing in skill development programs to ensure the workforce is equipped for the jobs of the future.
• Encouraging the transition from informal to formal employment to provide workers with greater job security and benefits.

As we interpret these statistics of Periodic Labour Force Survey Report 2024, it's important to remember that behind every percentage point are millions of individual stories - of aspirations, challenges, and triumphs. The PLFS report not only provides valuable data but also serves as a call to action for all stakeholders to work towards a more inclusive and prosperous labor market in India.

By continuing to monitor these trends and responding with agile, evidence-based policies, India can navigate the complex currents of its labor market, steering towards a future of increased productivity, reduced inequality, and improved quality of life for all its citizens.