Skip to main content

PLFS data: Is rising employment good news? Deeper analysis suggests contrary results

By Ishwar Chandra Awasthi, Puneet Kumar Shrivastav* 

Results of the Periodic Labour Force Survey (PLFS), 2020-21, released by the Ministry of Statistics and Programme Implementation, Government of India (GoI) on June 14, 2022, show improvement in work force participation rate (WPR) and labour force participation rate (LFPR) and declining unemployment rate. Four rounds of data have been released from 2017-18 to 2020-21 based on PLFS.
The general trend in the last four rounds clearly shows consistent increase in WPR and LFPR and falling unemployment rates by usual status (PS+SS). Though increase in WPR and LFPR is reported highest in 2019-20 over 2018-19, yet rising trend in these two key indicators continues throughout, and similarly fall in unemployment is registered highest in 2019-20 over 2018-19.
Clearly, the recent results give some solace and relief after unprecedented Covid-19 pandemic that has entailed enormous loss of human lives and livelihoods and crippled economic activities (Figure-1). However, some deeper analysis provides contrary results and clearly shows that all is not good as portrayed by these results. Some cursory analysis helps to demolish the encouraging news.
The sectoral movements of workforce indicate that primary sector employment, mainly the agriculture, shows rise of workforce during the period barring a bit slow down in 2018-19. The retrogression of workforce to agriculture somehow is not positive sign of wellbeing of workforce.
Understandably, those working in non-agriculture sector have returned to agriculture under duress conditions where real wages are lower compared to non-agriculture sector. This is certainly an employment of last resort. Employment in secondary sector stagnated and tertiary sector employment contracted in 2019-20 and 2020-21 (Figure-2). These sectors are considered better paid compared to agriculture sector.
Employment is generally disaggregated into self-employment, regular employment and casual employment. Regular paid employment is generally considered secure and better which is also a proxy of decent employment. Self-employment is considered fairly secure, though incomes from certain activities might be highly irregular, inadequate and even uncertain. However, for typical casual workers, neither duration of employment nor income is certain.
In agriculture sector, self-employment shows a modest uptrend, the regular salaried/wage employment has almost stagnated and casual employment has also declined during the period (2017-17 to 2020-21). Thus, most of the employment has occurred in self-employment in agriculture.
In the secondary sector, self-employment has generally stagnated barring in 2020-21 that saw some improvements. Regular salaried/ wage employment also stagnated and declined albeit sharply in 2020-21 compared to earlier years. Casual employment also declined or stagnated with some marginal spurt in 2020-21. In services sector, self-employment stagnated from 2017-18 to 2019-20 and later some increases were noticed in 2020-21. The regular salaried/ wage employment also stagnated and declined in 2020-21. The casual employment shows a steady decline over the years.
The rise in employment has been observed in those segments which are informal and unorganized receiving no social security and without the preview of labour laws. Undeniably, nature of employment occurred as a form of last resort or distress form of employment where people cannot afford to remain unemployed for any length of time and often forced to resort whatever employment is available (Table -1).
The newly sought information in PLFS 2020-21 reveals that 12.6 percent of the self-employed engaged in primary sector are the user or consumer of their own produced products via economic activities in which they are engaged in. Whatever they are producing is being consumed by them only.
So, the question here arises whether such economic activities should be considered as employment in real sense or it’s just a strategy for survival of livelihood. Further, one third (32%) of the self-employed individuals under primary sector do sell less than 50 percent share of their produce and rest is being used for their own consumption. Only 12.5 percent self-employed do use their entire produce for market (Figure-3).
Indeed, a country like India, where more than half of the workforce is engaged in self-employment activities, which is being promoted with sincere policy efforts by government, is still long way to go. Given evidences compel us to wonder whether all that glittering is really a gold.
---
*Dr Awasthi is Professor at Institute for Human Development, New Delhi; Dr Shrivastav is Assistant Director, National Institute of Labour Economics Research & Development (Under NITI Aayog, GoI), New Delhi. Views are personal

Comments

TRENDING

Aurangzeb’s last will recorded by his Maulvi: Allah shouldn't make anyone emperor

By Mohan Guruswamy  Aurangzeb’s grave is a simple slab open to the sky lying along the roadside at Khuldabad near Aurangabad. I once stopped by to marvel at the tomb of an Emperor of India whose empire was as large as Ashoka the Great's. It was only post 1857 when Victoria's domain exceeded this. The epitaph reads: "Az tila o nuqreh gar saazand gumbad aghniyaa! Bar mazaar e ghareebaan gumbad e gardun bas ast." (The rich may well construct domes of gold and silver on their graves. For the poor folks like me, the sky is enough to shelter my grave) The modest tomb of Aurangzeb is perhaps the least recognised legacies of the Mughal Emperor who ruled the land for fifty eventful years. He was not a builder having expended his long tenure in war and conquest. Towards the end of his reign and life, he realised the futility of it all. He wrote: "Allah should not make anyone an emperor. The most unfortunate person is he who becomes one." Aurangzeb’s last will was re...

Beyond his riding skill, Karl Umrigar was admired for his radiance, sportsmanship, and affability

By Harsh Thakor*  Karl Umrigar's name remains etched in the annals of Indian horse racing, a testament to a talent tragically cut short. An accident on the racetrack at the tender age of nineteen robbed India of a rider on the cusp of greatness. Had he survived, there's little doubt he would have ascended to international stature, possibly becoming the greatest Indian jockey ever. Even 46 years after his death, his name shines brightly, reminiscent of an inextinguishable star. His cousin, Pesi Shroff, himself blossomed into one of the most celebrated jockeys in Indian horse racing.

PUCL files complaint with SC against Gujarat police, municipal authorities for 'unlawful' demolitions, custodial 'violence'

By A Representative   The People's Union for Civil Liberties (PUCL) has lodged a formal complaint with the Chief Justice of India, urging the Supreme Court to initiate suo-moto contempt proceedings against the police and municipal authorities in Ahmedabad, Gujarat. The complaint alleges that these officials have engaged in unlawful demolitions and custodial violence, in direct violation of a Supreme Court order issued in November 2024.

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das*  India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on. A soft attitude always creates strong relationships. A relationship should not depend only on spoken words. They should rely on understanding the unspoken feeling too. So w...

State Human Rights Commission directs authorities to uphold environmental rights in Vadodara's Vishwamitri River Project

By A Representative  The Gujarat State Human Rights Commission (GSHRC) has ordered state and Vadodara municipal authorities to strictly comply with environmental and human rights safeguards during the Vishwamitri River Rejuvenation Project, stressing that the river’s degradation disproportionately affects marginalized communities and violates citizens’ rights to a healthy environment.  The Commission mandated an immediate halt to ecologically destructive practices, rehabilitation of affected communities, transparent adherence to National Green Tribunal (NGT) orders, and public consultations with experts and residents.   The order follows the Concerned Citizens of Vadodara coalition—environmentalists, ecologists, and urban planners—submitting a detailed letter to authorities, amplifying calls for accountability. The group warned that current plans to “re-section” and “desilt” the river contradict the NGT’s 2021 Vishwamitri River Action Plan, which prioritizes floodpla...

Haven't done a good deed, inner soul is cursing me as sinner: Aurangzeb's last 'will'

Counterview Desk The Tomb of Aurangzeb, the last of the strong Mughal emperors, located in Khuldabad, Aurangabad district, Maharashtra, has this epitaph inscribed on it: "Az tila o nuqreh gar saazand gumbad aghniyaa! Bar mazaar e maa ghareebaan gumbad e gardun bas ast" (the rich may well construct domes of gold and silver on their graves. For the poor folks like me, the sky is enough to shelter my grave).

CPM’s evaluation of BJP reflects its political character and its reluctance to take on battle against neo-fascism

By Harsh Thakor*  A controversial debate has emerged in the revolutionary camp regarding the Communist Party of India (Marxist)'s categorization of the Bharatiya Janata Party. Many Communists criticize the CPM’s reluctance to label the BJP as a fascist party and India as a fascist state. Various factors must be considered to arrive at an accurate assessment. Understanding the original meaning and historical development of fascism is essential, as well as analyzing how it manifests in the present global and national context.

How polarization between different ideological trends within the communist movement sharpened in India

By Harsh Thakor*  This article is a rejoinder to A Note on Slogans of “Left Unity,” “Unity of the Communist Revolutionaries” and “Mass Line” by Umair Ahmed, published on the Nazariya blog .

Implications of deaths of Maoist leaders G. Renuka and Ankeshwarapu Sarayya in Chhattisgarh

By Harsh Thakor*  In the wake of recent security operations in southern Chhattisgarh, two senior Maoist leaders, G. Renuka and Ankeshwarapu Sarayya, were killed. These operations, which took place amidst a historically significant Maoist presence, resulted in the deaths of 31 individuals on March 20th and 16 more three days prior.

राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी: जल जीवन मिशन के लक्ष्य को पाने समन्वित प्रयास जरूरी

- राज कुमार सिन्हा*  जल संसाधन से जुड़ी स्थायी समिति ने वर्तमान लोकसभा सत्र में पेश रिपोर्ट में बताया है कि "नल से जल" मिशन में राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी साबित हुए हैं। जबकि देश के 11 राज्यों में शत-प्रतिशत ग्रामीणों को नल से जल आपूर्ति शुरू कर दी गई है। रिपोर्ट में समिति ने केंद्र सरकार को सिफारिश की है कि मिशन पुरा करने में राज्य सरकारों की समस्याओं पर गौर किया जाए।