Home Government and Policy Here is why comparing the recent job data with past data is faulty and foolish

Here is why comparing the recent job data with past data is faulty and foolish

The PLFS needs to be seen as a new series for measuring employment and unemployment on an annual basis.

In January this year, some data on jobs from the Periodic Labour Force Survey (PLFS) conducted by National Sample Survey Office (NSSO) was leaked, which had created a big furore in the country. Based on the leaked incomplete data, several media houses and intellectuals had claimed that India’s unemployment rate for the year 2017-18 was at the highest level in 45 years. Opposition parties had used such analysis based on incomplete leaked data to attack the government before and during the Lok Sabha elections.

Today the Periodic Labour Force Survey report was officially released by the Ministry of Statistics and Programme Implementation. Going through the same, it can be said that there can be nothing farther away from the truth than saying that unemployment in India is at a 45 year low! The report confirms the leaked figure of 6.1% unemployment rate, but there are crucial details which make the difference. The report shows that the method to calculate jobs data has been changed, hence it can’t be compared with past data.

The unemployment rate for different social groups during 2017-2018

- Ad - - article resumes -

Past jobs data was measured using the expenditure of households as a criterion. The current jobs data uses education as a criterion instead of expenditure. This means this has become a perfect ‘apples to oranges’ comparison.

In India, the labour force surveys (Employment and Unemployment Surveys or EUS) have usually been bundled along with the household Consumer Expenditure Survey, conducted typically once in 5 years. The employment and unemployment surveys conducted by the National Sample Survey till 2011-12 used the monthly per capita expenditure of the household in the selected villages/blocks as a basis for stratification of households.

In the Periodic Labour Force Survey (PLFS) conducted for the year 2017-18, a decision was taken to use education levels as a criterion for stratification at the ultimate level.

This change in criteria from monthly per capita expenditure to education levels has direct implications on the comparability of the results of PLFS with the EUS of earlier years. In view of this, the PLFS needs to be seen as a new series for measuring employment and unemployment on an annual basis.

It is important to note that with the rise in education levels in the economy and rise in household income levels, the aspiration levels of educated youth have also risen. Thus, they may no longer be willing to join the labour force or workforce requiring low skills and low remuneration. The PLFS results give the distribution of educated and unemployed persons across the country which can be used as a basis for skilling of youth to make them more employable by industry.

There are various facets to the employment and unemployment scenario and no single data source is complete by itself. These data sets need to be supplemented by data from other sources so as to collectively give a holistic picture of the overall employment market. In this direction, the Ministry has been bringing out a compilation of new subscribers to EPFO, ESIC and NPS to give an assessment of changes in the formal market employment. The PLFS survey data complemented by administrative data and data from other sources need to be triangulated to get a complete picture.

Help Opindia Reach Every Indian. Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Big Story

The National Commission for Women (NCW) has taken cognisance of the complaint of sexual harassment that was made by one Himanshi Gupta against a senior producer of Kapil Sibal backed Tiranga TV.

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

Proud to be a brand - Made in India?
Now, Advertise on Opindia

Mangalore: Mohammad Ansari rapes a cow by tying its limbs, villagers catch him in the act, arrested

The villagers also made Ansari touch cow’s feet and ask for forgiveness for raping her. However, when Ansari approached the calf, the animal freaked out and started running.

Mangaluru villagers caught Mohammad Ansari raping a calf, police arrests villagers for ‘hurting religious beliefs’

In the Kunjathbail village in Mangaluru, Mohammad Ansari was caught red-handed by the villagers while he was raping a calf.

Here are 15 famous quotes from Harsha Bhogle during his commentary stint

The famous Indian commentator, Harsha Bhogle, born on July 19 in Hyderabad is celebrating his 58th birthday today.

Abusive actor Ajaz Khan arrested by Mumbai Police for instigating violence through social media

Mumbai Police arrests small-time actor Ajaz Khan after he mocked the police on TikTok
Couple forced out of village; husband pressurised to accept wife’s religion

Hindu boy’s family forced out of village for marrying Muslim girl, police advices boy to convert as villagers threaten to kill

Newlywed Hindu boy and Muslim girl approach SSP for protection as villagers threaten to kill them and local police ask the boy to convert

Revisiting Sainbari, a blot on Indian Democracy: When Communists made a mother eat rice with her dead sons’ blood

The Sainbari incident remains the most horrific instance of political violence in the country.
Salma Ansari's temple plan receives AMU's objection

AMU administration’s jolt to Mrs Ansari’s secularism pitch, says no to temple plan inside ‘Chacha Nehru Madarsa’

Salma Ansari, the wife of former vice president Hamid Ansari, had announced recently that she will have a temple built inside the 'Chacha Nehru Madarsa' that she runs in AMU campus.
Shashi Tharoor supports Sanjiv Bhatt

Congress leader Shashi Tharoor extends support to disgraced cop Sanjiv Bhatt sentenced to life in custodial death case

Shashi Tharoor had tweeted today that he had met with the family of disgraced cop Sanjiv Bhatt

Live updates Karnataka Trust Vote: House adjourned, floor test now expected on Monday

JDS-Congress government of Karnataka is facing their second floor test after assembly elections were held in May last year.
United Muslim Forum in Telangana asks members not to kill cows on Bakr Eid

United Muslim Forum asks Muslims not to kill cows on Bakr-Eid, asks state government to stop Gau Rakshaks

The United Muslim Forum reportedly said that the Muslim community must refrain from killing bovine animals on Bakr-Eid so the possibilities of mischief are reduced.
Subscribe to Day's Top Stories
- Advertisment -

Latest articles

Connect with us

173,673FansLike
159,301FollowersFollow
74,862SubscribersSubscribe
Help Opindia Reach Every Indian. Share This Post