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Farm Crisis | Unemployment
Unemployment

Unemployment

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What's Inside

Please click here, here and here to access the key findings of the report entitled Workers in the Times of COVID-19 (first round) by ActionAid India (released 13th August, 2020).

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The Annual Report is based on the Periodic Labour Force Survey (PLFS) conducted by National Statistical Office (NSO) from July 2018 to June 2019. The survey was spread over 12,720  first stage units -- FSUs (6,983 villages and 5,737 urban blocks) covering 1,01,579 households (55,812 in rural areas and 45,767 in urban areas) and enumerating 4,20,757 persons (2,39,817 in rural areas and 1,80,940 in urban areas). Estimates of the labour force indicators are presented in this report based on the usual status (ps+ss) approach and current weekly status approach adopted in the survey for classification of the population by activity statuses. The reference period for usual status (ps+ss) approach is 1 year and for current weekly status approach, it is 1 week. A rotational panel sampling design was used in urban areas. In this rotational panel scheme each selected household in urban areas is visited four times -- in the beginning with first visit schedule and thrice periodically later with revisit schedule. There was no revisit in the rural samples. The estimates of household and population, labour force, workforce and unemployment presented here are based on data collected in the Schedules of first visit in both rural and urban areas.

The key findings of the Annual Report on Periodic Labour Force Survey, July 2018-June 2019 (released in June 2020), National Statistical Office, Ministry of Statistics and Programme Implementation, are as follows (please click here to access):

 

Labour Force in usual status (ps+ss)

• Nearly 55.1 percent of the rural males, 19.7 percent of the rural females, 56.7 percent of the urban males and 16.1 percent of the urban females were in the labour force.  

• Among persons of age 15-29 years, LFPR in India was 38.1 percent: it was 37.8 percent in rural areas and 38.7 percent in urban areas.

• Among persons of age 15 years and above, LFPR in India was 50.2 percent: it was 51.5 percent in rural areas and 47.5 percent in urban areas.

 

Worker Population Ratio (WPR) in usual status (ps+ss)

• The Worker Population Ratio (WPR) was about 35.3 percent at the all-India level. It was about 35.8 percent in rural areas and 34.1 percent in urban areas.

• The WPR was 52.1 percent for rural males, 19.0 percent for rural females, 52.7 percent for urban males and 14.5 percent for urban females.

• Among persons of age 15-29 years, WPR in India was 31.5 percent: it was 31.7 percent in rural areas and 30.9 percent in urban areas.

• Among persons of age 15 years and above, WPR in India was 47.3 percent: it was 48.9 percent in rural areas and 43.9 percent in urban areas.

 

Status in employment among workers in usual status (ps+ss)

• Share of self-employed among workers in India was about 57.4 percent among rural males, 59.6 percent among rural females, 38.7 percent among urban males and 34.5 percent among urban females.

• Among workers, about 14.2 percent among rural males, 11.0 percent among rural females, 47.2 percent among urban males and 54.7 percent among urban females were regular wage/ salaried employees.

• The proportion of casual labour among workers in India was about 28.3 percent among rural males, 29.3 percent among rural females, 14.2 percent among urban males and 10.3 percent among urban females.

 

Industry of work of the workers in usual status (ps+ss)

• In rural areas, during 2018-19, roughly 53.2 percent of the male workers and 71.1 percent of the female workers were engaged in the agricultural sector. The proportions of male and female workers in rural areas engaged in ‘construction’ sector were 15.4 percent and 6.0 percent respectively. The proportions of male and female workers in rural areas engaged in ‘manufacturing’ sector were 7.3 percent and 9.0 percent respectively.

• In urban India, during 2018-19, among male workers, the industry sector, ‘trade, hotel and restaurant' sector engaged about 25.2 percent while ‘manufacturing’ and ‘other services’ sectors accounted for about 21.9 percent and 22.3 percent, respectively.

• Among female workers in the urban, ‘other services’ sector (other than ‘trade, hotel & restaurant’ and ‘transport, storage & communications’) shared the highest proportion of workers (45.6 percent), followed by ‘manufacturing’ (24.5 percent) and ‘trade, hotel and restaurant' (13.8 percent).

 

Informal sector and conditions of employment of the workers in usual status (ps+ss)

• In India, 68.4 percent of the workers in non-agriculture sector were engaged in informal sector. The share of informal sector among male workers was 71.5 percent and among female workers was nearly 54.1 percent in non-agriculture.

• Among regular wage/ salaried employees in the non-agriculture sector, 69.5 percent had no written job contract: 70.3 percent among males and 66.5 percent among females.

• Among regular wage/ salaried employees in the non-agriculture sector, 53.8 percent were not eligible for paid leave: 54.7 percent among males and 50.6 percent among females.

• Among regular wage/ salaried employees in the non-agriculture sector, 51.9 percent were not eligible for any social security benefit: 51.2 percent among males and 54.4 percent among females.

 

Unemployment Rate in usual status (ps+ss)

• Unemployment rate in the country was 5.8 percent. It was 5.6 percent among males and 3.5 percent among females in rural areas, while the rates were 7.1 percent among males and 9.9 percent among females in urban areas.

• For educated (highest level of education secondary and above) persons of age 15 years and above, unemployment rate was 11.0 percent: 11.2 percent in rural areas and 10.8 percent in urban areas.

• The unemployment rate among the rural male youth (persons of age 15-29 years) was 16.6 percent while the unemployment rate among the rural female youth was 13.8 percent during 2018-19. The unemployment rate among the urban male youth was 18.7 percent while the unemployment rate for urban female youth was 25.7 percent during this period.


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Kindly note:

Labour Force Participation Rate (LFPR) is defined as the percentage of persons in the labour force in the population.

 

LFPR = {(Number of employed persons + Number of unemployed persons) divided by Total population} multiplied by 100

 

Worker Population Ratio (WPR) is defined as the percentage of employed persons in the population.

 

WPR = {Number of employed persons divided by Total population} multiplied by 100

 

Proportion Unemployed (PU) is defined as the percentage of persons unemployed in the population.

PU = {Number of unemployed persons divided by Total population} multiplied by 100

 

Unemployment Rate (UR) is defined as the percentage of persons unemployed among the persons in the labour force.

UR = {Number of unemployed persons divided by (Number of employed persons + Number of unemployed persons) } multiplied by 100

 

In the usual status approach (ps+ss), the activity status of a person is determined on the basis of the reference period of last 365 days preceding the date of survey.

The usual status, determined on the basis of the usual principal activity (ps) and usual subsidiary economic activity (ss) of a person taken together, is considered as the usual activity status of the person and is written as usual status (ps+ss). According to the usual status (ps+ss), workers are those who perform some work activity either in the principal status or in the subsidiary status. Thus, a person who is not a worker in the usual principal status is considered as worker according to the usual status (ps+ss), if the person pursues some subsidiary economic activity for 30 days or more during 365 days preceding the date of survey.

 

The labour force in current weekly status gives the average picture of the labour force participation in a short period of one week during the survey period. The estimate of labour force according to the current weekly status approach gives the number of persons who worked for at least 1 hour or was seeking/ available for work for at least 1 hour on any day during the 7 days preceding the date of survey.

 

Rural Expert
 

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