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LATEST NEWS UPDATES | Our employment data should be interpreted cautiously -Himanshu

Our employment data should be interpreted cautiously -Himanshu

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published Published on Jun 16, 2022   modified Modified on Sep 5, 2022

-Livemint.com

This is the fourth report in the PLFS data series and offers information on both employment and unemployment for rural as well as urban areas.

Earlier this week, India’s ministry of statistics and programme implementation released the annual report of the Periodic Labour Force Survey (PLFS) for the reference period July 2020 to June 2021. This is the fourth report in the PLFS data series and offers information on both employment and unemployment for rural as well as urban areas. Preliminary analysis from the 2020-21 round survey indicates a rise in the number of workers in the Indian economy, with the total number of workers (by usual status) at 539.5 million, as against 513.3 million in 2019-20. Of the total increase in the number of workers, i.e. 26.2 million, its count of male workers rose by 10.8 million while female workers increased by 15.3 million.

These increases are in line with the trend seen in earlier PLFS reports, with successive rises found in the number of workers every year since the PLFS began in 2017-18. The annual survey’s increased count of workers was accompanied by a decline in the overall unemployment rate, with joblessness found to have fallen for every group, be it rural or urban or male or female, as well.

Going by the broad numbers, these estimates suggest a sharp recovery in employment creation in our economy, with an accompanying decline in unemployment. But any such interpretation could be misleading, given the complexity of interpreting employment estimates. More so in periods of severe distress, such as the current phase of the economy. Not only did our economy suffer a sharp slowdown after 2016-17, with growth slumping from 8.3% that fiscal year to 3.7% in 2019-20, the two years after 2019-20 have been years of disruption in economic activity due to the pandemic, with our economy yet to fully recover from it. So much so that per capita income of Indians was lower in 2021-22 than in 2018-19. Data on rural wages from India’s labour bureau also shows a decline in real wages of casual workers during the same period.

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Livemint.com, 16 June, 2022, https://www.livemint.com/opinion/online-views/our-employment-data-should-be-interpreted-cautiously-11655393998613.html


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