Periodic Labour Force Survey (PLFS) Annual Report: July 2021-June 2022

The ‘labour force’ is the share of the population “which supplies or offers to supply labour for pursuing economic activities” and thus includes both employed and unemployed people. The labour force participation rate (LFPR) measures the share of labour force within a population. In 2021-22, the LFPR was 41.3 per cent (as per usual status) and 38.7 per cent (as per current weekly status).

As per usual status, the LFPR in rural areas was 27.2 per cent among women and 56.9 per cent among men. In urban areas, the figures were 18.8 per cent for women and 58.3 per cent for men.

The worker population ratio (WPR) is termed as the “percentage of workers in the population”. The WPR in 2021-22 for persons of all ages (as per usual status) was 39.6 per cent – 54.8 per cent among men and 24 per cent among women.

The WPR among those aged 15-29 years was 36.8 per cent – 53.3 per cent among males and 19.1 per cent among females. In this age group, the WPR was found to be higher among people in rural India (38 per cent) than in urban India (33.6 per cent).

The report also records the WPR (in usual status) among people aged 15 years and above categorised by the ‘highest level of education successfully completed’. In 2021-22, the WPR among those considered ‘not literate’ was 52.8 per cent. It was 45 per cent among those who had completed secondary education and 68.5 per cent among people who had a diploma or other certification. The WPR among graduates was 53.9 per cent.

The PLFS also outlines the percentage of workers across three categories: self-employed, regular wage/salaried employee and casual labour. During the period of July 2021-June 2022, 55.8 per cent of the people surveyed were self-employed. Around 21.5 per cent earned regular wages or salaries and 22.7 per cent were casual labourers.

In rural areas, more than half of the workers surveyed were self employed (58.6 per cent males and 67.8 per cent females) compared to those earning regular salaries and wages (14.7 per cent males and 8.1 per cent females). In urban areas, more people were salaried (46.3 per cent males and 50.3 per cent females) than self-employed (39.5 per cent males and 39.4 per cent females).

Among employees who earned regular salaries or wages, 62 per cent had no written job contracts. As many as 49.2 per cent of such employees were not eligible for paid leave and 53 per cent were ineligible for any social security benefits.

Distribution of workers according to broad industries they worked in found the highest numbers engaged in “agriculture” – 45.5 per cent. Around 12.1 per cent were engaged in “trade, hotel & restaurant”, 12.4 per cent in “construction” and 11.6 per cent in “manufacturing”.

The report records quarter-wise average earnings for self employed, salaried and casual workers. In the last quarter (April to June 2022), salaried employees in rural areas earned Rs. 14,766 per month on average (16,041 for men and 9,753 for women). The figures in urban areas were Rs. 21,647 (22,833 for men and 17,965 for women).

In the same April to June 2022 quarter, daily earnings for people engaged in casual labour (other than public works) in rural areas were Rs. 368 on average – Rs. 393 for men and Rs. 265 for women. In urban areas, the daily average earnings were Rs. 464 – Rs. 483 for men and Rs. 333 for women.

The unemployment rate (UR) is the “percentage of unemployed persons in the labour force.” The country-level UR (as per usual status) among persons of all ages was 4.1 per cent. It was 3.3 per cent in rural areas (3.8 per cent among males and 2.1 per cent among females) and 6.3 per cent in urban areas (5.8 per cent among males and 7.9 per cent among females).

The UR (as per usual status) among those aged 15-29 years was considerably higher – 12.4 per cent (12.6 per cent among males and 11.8 per cent among females). It was also higher in urban areas (17.2 per cent) than in rural areas (10.6 per cent).

Focus and Factoids by Swadesha Sharma.