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How the pandemic and lockdown disrupted labour markets -Abhishek Jha and Roshan Kishore

-Hindustan Times

PLFS report shows urban unemployment grew; there was an unprecedented shift from urban to rural jobs; wages fell and underemployment increased

The 2019-20 Periodic Labour Force Survey (PLFS), which was released last week by the National Statistical Office (NSO) shows a fall in unemployment rate from 5.8% in 2018-19 to 4.8% 2019-20. Since PLFS follows a July-June rather than the fiscal year (April-March) period, the 2019-20 report includes the 68-day long complete lockdown period.

Does this mean that there was no distress in labour markets during the lockdown?

An HT analysis suggests that the headline employment numbers in the latest report might be misleading, and a careful reading of the report and the unit-level data does show signs of pandemic driven distress in labour markets. Here are five charts which elaborate this argument.

What do the headline numbers show?

The three most important numbers in the PLFS report are labour force participation rate (LFPR), work participation rate (WPR) and unemployment rate (UR).

LFPR is the share of population in a given age group which is either working or looking for a job. WPR is the share of population which is actually working. UR is the percentage of unemployed persons in the labour force.

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