Unemployment has come down, says latest labor force survey

Author: Nishu June 15, 2022


Data show rate of unemployment fell to 4.2% in 2020-21 from 4.8% earlier

Data show rate of unemployment fell to 4.2% in 2020-21 from 4.8% earlier

According to the Periodic Labor Force Survey (PLFS) for 2020-21 released by the Ministry of Statistics and Programs, the unemployment rate saw a decrease of 0.6% and fell to 4.2% in 2020-21 as compared to 4.8% in 2019-20. Implementation here on Tuesday. This means that in 2020-21, only 4.2% of adults looking for jobs in rural and urban areas of the country did not find any work. The unemployment rate was recorded at 3.3% in rural areas and 6.7% in urban areas.

The Office for National Statistics (NSO) uses a “rotating panel sample design” to estimate the labor force participation rate (LFPR), worker population ratio (WPR) and unemployment rate in urban areas, and four times the selected households in urban areas. visits. However, no revalidation was performed for rural samples.

The sample size for the first visit during July 2020-June 2021 in rural and urban areas was 12,800 Phase I Sampling Units (FSUs) comprising 7,024 villages and 5,776 urban frame survey blocks. Out of this 12,562 FSUs (6,930 villages and 5,632 urban blocks) were surveyed for publicity of PLFS schedule. The ministry said, “The number of households surveyed was 1,00,344 (55,389 in rural areas and 44,955 in urban areas) and the number of persons surveyed was 4,10,818 (2,36,279 in rural areas and 1,74,539 in urban areas). ) Was.” in a release.

The percentage of persons in the labor force (ie working or seeking work or available for work) in the population was 41.6% during the LFPR, 2020-21. Last year it was 40.1%. The WPR stood at 39.8%, up from the previous year’s 38.2%. WPR is defined as the percentage of employed persons in the population.

The survey defines migrants as a member of a family whose last common place of residence was, at any time in the past, different from the current place of enumeration. The migration rate as per the survey is 28.9%. The migration rate of women in rural and urban areas was 48 percent and 47.8 percent respectively.

Experts point out that a second visit to homes in rural areas could have provided a bigger and bigger picture of unemployment, which the survey did not. “Overall, the report suggests a change in the policy directives of the government as it becomes more rural-centric. Creation of rural jobs in agriculture sector and other than MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) could be a priority for the government at the central and state level,” said Sridhar Kundu, senior research analyst at the Indian School of Business.

Dr Kundu said that PLFS said that only 4.4% of migration was due to employment, which is a sharp decrease from 10% in 2011. “The report justifies the theory of massive reverse migration and job losses during the pandemic. Reverse migration during the pandemic led to high rates of unemployment in rural areas, leading to rural distress. However, the annual report on the unemployment rate shows a contradiction. The rural unemployment rate has come down from 4% in 2019-20 to 3.3% in 2020-21,” said Dr Kundu.

15 June, 2022, 12:54 am

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Wednesday, 15th June 2022

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