Periodic Labour Force Survey Annual Report (2023–24)

The National Sample Survey Office (NSSO) released the Seventh Periodic Labour Force Survey (PLFS) annual report (July 2023–June 2024) on September 2024. The NSSO has been conducting the PLFS since 2017.

As per the Ministry of Statistics Programme Implementation (MOSPI), the term ‘Labour Force’ is defined as the total number of persons who are either working (or employed) and seeking or available for work (or unemployed).

The report presents estimates of employment and unemployment across rural and urban regions, broken down by factors such as gender and age. The report is significant as various government departments, ministries, organisations, academicians, researchers, and scholars use PLFS data for planning, policy-making, decision-making, and additional statistical analysis.

Objectives of the Report

The PLFS was developed with two main objectives of assessing employment and     unemployment:

(i) To estimate key employment and unemployment indicators—such as the Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate—at quarterly intervals for urban areas using the Current Weekly Status (CWS) approach

(ii) To provide annual estimates of employment and unemployment indicators in both rural and urban areas using both the Usual Status (principal status plus subsidiary status) and the CWS approaches

Definition and Types of Unemployment

As per the World Bank, “Unemployment refers to the share of the labor force that is without work but available for and seeking employment.”

According to this report, a person is considered as unemployed in a week if he/she did not work even for one hour during the week but sought or was available for work at least for one hour during the week.

Unemployment has the following types:

• Involuntary unemployment occurs when individuals actively seek work but cannot find any due to an oversupply of labour.
• Voluntary unemployment arises when individuals choose not to work despite job availability, often due to dissatisfaction with pay, job quality, or dignity.
• Structural unemployment results from economic shifts; creates mismatches between available jobs and workforce’s skillsets.
• Seasonal unemployment affects workers in industries with seasonal demand, leading to joblessness during off-seasons.
• Cyclical unemployment occurs during economic downturns, when businesses lay off workers in recessions but rehire them in recovery periods.
• Disguised unemployment is found in sectors with excess workers contributing little to productivity.
• Frictional unemployment is temporary unemployment during job transitions, as individuals leave one job to find another.

Survey Coverage and Methodology

During the survey period from July 2023 to June 2024, a total of 12,743 first stage units (FSUs) out of 12,800 allotted were successfully surveyed across India— comprising 6,975 villages and 5,768 urban blocks. The total number of households surveyed was 1,01,920, including 55,796 in rural areas and 46,124 in urban areas. In all, 4,18,159 individuals were surveyed, of which 2,42,546 were from rural and 1,75,613 from urban areas. Among them, 3,19,773 individuals were aged 15 years and above. The survey covered the entire Indian Union, except for the villages in Andaman and Nicobar Islands, which remained extremely difficult to access through the year.

The PLFS provides estimates of key employment and unemployment indicators such as the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), etc, based on two reference periods: the Usual Status and Current Weekly Status (CWS).

Some Important Formulae and Concepts

LFPR is the percentage of individuals who are either working or actively seeking/ available for work, relative to the total population.

• WPR is defined as the proportion of employed individuals within the total population.

• UR refers to the percentage of unemployed individuals within the labour force (i.e., those either working or seeking/available for work).

• Activity Status-Usual Status determines a person's activity based on the major activities pursued by the person during the specified reference period. When the activity status is determined during the 365 days prior to the survey it is known as usual activity status.
• Principal Activity Status (ps), the activity on which a person spent the majority of the time during the reference year.
• Subsidiary Economy Activity Status (ss), which is any additional economic activity performed for at least 30 days within the same 365-day period.
• CWS refers to the activity status of a person based on their activities during the seven days immediately preceding the date of the survey.

Key Findings of the Report

1. Estimates of Key Labour Market Indicators in Usual Status (ps+ss)

Increasing Trend in LFPR for Persons of Age 15 Years and above

In rural areas, the LFPR rose from 50.7 per cent in 2017–18 to 63.7 per cent in 2023–24. In urban areas, it increased from 47.6 per cent to 52 per cent over the same period. For males across India, the LFPR grew from 75.8 per cent in 2017–18 to 78.8 per cent in 2023–24. Meanwhile, the LFPR for females showed a significant rise, increasing from 23.3 per cent to 41.7 per cent.

Increasing Trend of WPR for Persons of Age 15 Years and above

In rural areas, the WPR rose from 48.1 per cent in 2017–18 to 62.1 per cent in 2023–24; while in urban areas, it went up from 43.9 per cent to 49.4 per cent during the same period. At the national level, WPR for males increased from 71.2 per cent to 76.3 per cent, and for females, it saw a notable rise from 22.0 per cent to 40.3 per cent.

Decreasing Trend in UR for Persons of Age 15 Years and above

In rural areas, the unemployment rate (UR) declined from 5.3 per cent in 2017-18 to 2.5 per cent in 2023–24; while in urban areas, it fell from 7.7 per cent to 5.1 per cent during the same period. At the national level, the UR for males dropped from 6.1 per cent to 3.2 per cent, and for females, it decreased from 5.6 per cent to 3.2 per cent.

2. Estimates of Key Labour Market Indicators in CWS

Increasing Trend in LFPR for Persons of Age 15 Years and above

In rural areas, the LFPR rose from 48.9 per cent in 2017–18 to 58.9 per cent in 2023-24, while in urban areas, it increased from 47.1 per cent to 50.8 per cent during the same period. Nationally, the LFPR for males grew from 75.1 per cent to 77.5 per cent and for females, it saw a significant rise from 21.1 per cent to 35.6 per cent.

Increasing Trend in WPR for Persons of Age 15 years and above

In rural areas, the WPR increased from 44.8 per cent in 2017–18 to 56.5 per cent in 2023–24; while in urban areas, it rose from 42.6 per cent to 47.4 per cent. At the national level, the WPR for males went up from 68.6 per cent to 73.8 per cent and for females, it recorded a notable rise from 19.2 per cent to 33.8 per cent over the same period.

Decreasing Trend in UR for Persons of Age 15 Years and above

In rural areas, the UR declined from 8.4 per cent in 2017–18 to 4.2 per cent in 2023–24; while in urban areas, it dropped from 9.5 per cent to 6.7 per cent. At the national level, the UR for males decreased from 8.7 per cent to 4.8 per cent and for females it fell from 9.0 per cent to 5.0 per cent during the same period.

PLFS Key Employment Unemployment Indicators for January–December 2024

The Ministry of Statistics and Programme Implementation with National Statistics

Office (NSO) has released a PLFS update for January 2024–December 2024, on April 9, 2025.

According to the updated report, the following are some key findings:

• LFPR: In urban areas, LFPR increased for males from 74.3 per cent in 2023 to 75.6 per cent in 2024, and showed a slight rise for females from 25.5 per cent to 25.8 per cent resulting in an overall increase in urban LFPR for 50.3 per cent to 51.0 per cent. However, the overall LFPR at the national level remained steady at 56.2 per cent, despite minor fluctuations across different categories.
• WPR: Slight improvements were observed across all categories, especially in the overall WPR in urban areas, which increased from 47.0 per cent to 47.6 per cent. At all-India level, the overall WPR remained largely stable, with a marginal rise from 53.4 per cent to 53.5 per cent.
• UR: In rural areas, there was a marginal decline in overall unemployment, from 4.3 per cent to 4.2 per cent, with slight reductions observed for both men and women. In urban areas, male unemployment rose slightly from 6.0 per cent to 6.1 per cent, while female unemployment decreased from 8.9 per cent to 8.2 per cent, resulting in the overall urban UR remaining steady at 6.7 per cent. At the all-India level, unemployment saw a minor drop from 5.0 per cent to 4.9 per cent, indicating slight improvements in employment opportunities.
• The decline in the share of unpaid helpers in household enterprises appears to have contributed to the drop in both the WPR and LFPR among rural females. Specifically, the percentage of rural women working as “helpers in household enterprises” fell from 19.9 per cent in 2023 to 18.1 per cent in 2024.

Labour Force Indicators in Principal and Subsidiary Status (ps + ss)

• LFPR: The LFPR in India remained largely stable between 2023 and 2024, despite some differences across rural and urban regions. At the national level, the overall LFPR saw a slight decline, decreasing marginally from 59.8 per cent to 59.6 per cent.
• WPR: The WPR reflected a similar trend. At the all-India level, it registered a marginal decrease from 58.0 per cent to 57.7 per cent, suggesting a slight decline in employment even as overall participation rates remained relatively stable.
• UR: The UR displayed mixed trends across various sectors. At the all-India level, the unemployment rate saw a slight increase from 3.1 per cent to 3.2 per cent, although it continues to remain relatively low overall.

Conclusion

The PFLS 2023–24 reveals a complex labour market scenario, with positive trends in participation rates juxtaposed against rising informal employment and regional disparities. Addressing these challenges necessitates a multifaceted approach, combining policy reforms, targeted investments, and adaptive skill development to foster a resilient and inclusive employment landscape.

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