Periodic Labour Force Survey (PLFS) 2020-21

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• Recently, the Ministry of Statistics and Programme Implementation released the Periodic Labour Force Survey (PLFS) for 2020-21.

Major Findings of the Report

• Decline in unemployment: The unemployment rate saw a decrease of 0.6% and fell to 4.2% in 2020-21, compared with 4.8% in 2019-20. 
  • This means that only 4.2% of adults who looked for jobs could not get any work in rural and urban areas of the country in 2020-21.
• Rural and urban gap: Rural areas recorded an unemployment rate of 3.3% and urban areas recorded an unemployment rate of 6.7%.
• LFPR: The percentage of persons in the labour force that is working or seeking work or available for work in the population was 41.6% during 2020-21.
  • It was 40.1% in the previous year.
• The WPR: was 39.8%, an increase from 38.2% of the previous year.
  • WPR is defined as the percentage of employed persons in the population.
• The migration rate: Migrants are defined in the survey as a household member whose last usual place of residence, at any time in the past, was different from the present place of enumeration.
  • The migration rate according to the survey is 28.9%.
  • The migration rate among women was 48% and 47.8% in rural and urban areas, respectively.
• Migration due to employment: only 4.4% of migration happened due to employment, which is a drastic reduction from the 10% in 2011.

Methodology used for sampling

• Rotational panel sampling design: The National Statistical Office (NSO) uses rotational panel sampling design in urban areas to assess the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR) and the unemployment rate, and visits selected households in urban areas four times.
  • There was, however, no revisit for the rural samples.

Issues

• Higher rate of unemployment in rural areas: Reverse migration during pandemic led to higher rate of unemployment agglomeration in rural areas, which caused rural distress.
• Impact on organised sector’s jobs: Urban employment is a proxy for better paying jobs and a decline in these numbers reflects impact on better-paying organised sector’s jobs.
• Low consumption levels: With Covid-19 cases on the rise amid the threat posed by the Omicron variant and many states imposing fresh curbs, economic activity and consumption levels have been affected.
• $5-trillion target: None of this portends well for the economy or the $5-trillion target set by the government, unless it can course-correct and creates more jobs.
• Job security: Indians, however, worry about unemployment with concerns around job security topping their list.
• Ripple effect: The impact of unemployment can be felt by both the workers and the national economy and can cause a ripple effect.
• Suffer financial hardship: Unemployment causes workers to suffer financial hardship that impacts families, relationships, and communities. When it happens, consumer spending, which is one of an economy’s key drivers of growth, goes down, leading to a recession or even a depression when left unaddressed.

Employment Generation Schemes/ Programmes of Government of India

• Atma Nirbhar Bharat Rojgar Yojana (ABRY): 
  • It was launched with effect from 1st October, 2020 as part of Atma Nirbhar Bharat package 3.0 to incentivize  employers for creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic.
• Pradhan Mantri Rojgar Protsahan Yojana (PMRPY):
  • It was launched with effect from 1.4.2016 to incentivise employers for creation of new employment. The beneficiaries registered upto 31st March, 2019 will continue to receive the benefit for 3 years from the date of registration under the scheme i.e. upto 31st March, 2022
• National Career Service (NCS) Project:
  • Project for transformation of the National Employment Service to provide a variety of career related services like job matching, career counselling, vocational guidance, information on skill development courses, apprenticeship, internships etc
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
  • MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. 
• Garib Kalyan Rojgar Abhiyaan (PMGKRA):
  • It is a 125-day Abhiyan launched with a mission to address the issues of returnee migrant workers and similarly affected rural population by Covid-19 pandemic through a multi- pronged strategy of providing immediate employment & livelihood opportunities to the distressed.
• Aajeevika – National Rural Livelihoods Mission (NRLM)
  • It was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011. Aided in part through investment support by the World Bank, the Mission aims at creating efficient and effective institutional platforms for the rural poor, enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services. 
• Pt. DeenDayal Upadhyaya Grameen Kaushlya Yojana (DDU-GKY)
  • The Ministry of Rural Development (MoRD) announced the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) Antyodaya Diwas, on 25th September 2014. 
    • DDU-GKY is a part of the National Rural Livelihood Mission (NRLM), tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth. The website link for the scheme is
• PM- SVANidhi Scheme:
  • Prime Minister Street Vendor’s  AtmaNirbhar Nidhi (PM SVAN idhi) Scheme since June 01, 2020 to provide collateral free working capital loan to Street Vendors, vending in urban areas, to resume their businesses which were adversely affectedduetoCOVID-19inducedlock-down. 
• Pradhan Mantri MUDRA Yojana (PMMY):
  • It is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
• Pradhan Mantri Kaushal VikasYojana (PMKVY):
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) implemented by National Skill Development Corporation.
• Production-Linked Incentive (PLI) Scheme:
  • Hon’ble Finance Minister, Smt Nirmala Sitharaman has announced an outlay of INR 1.97 Lakh Crores for the Production Linked Incentive (PLI) Schemes across 13 key sectors, to create national manufacturing champions and generate employment opportunities for the country’s youth. 

Way Forward/ Suggestions

• Shifting the government’s policy: The report suggests shifting the government’s policy directions as it has become more rural centric.
• Creation of rural jobs other than in the agricultural sector and MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) could be priorities for the government at the Union and State levels.
• Self employed: As growth dipped in India, the proportion of rural households reporting themselves as ‘self-employed’, especially in non-agriculture, went up at the cost of regular wage earning/salaried households.
• Large-scale reverse migration: The report justifies the theory of large-scale reverse migration and job losses during the pandemic.

Source: TH