Saturday, April 17, 2021
Home Government and Policy Here is why comparing the recent job data with past data is faulty and...

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

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.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Editorial Deskhttp://www.opindia.com
Editorial team of OpIndia.com

Related Articles

Trending now

Food grain smuggling into Punjab to make money out of MSP continues, more than 25,000 bags of wheat smuggled from Bihar seized in Bhatinda

Wheat is purchased at the rate of Rs 1,100 per quintal in Bihar and other states and sold in Punjab at around Rs 1,925 per quintal as MSP

Republic Day violence: Hours after getting bail, Deep Sidhu gets arrested by Delhi Crime Branch

Only hours after Delhi Court granted bail to Deep Sidhu in Republic Day violence case, Delhi Crime Branch has reportedly arrested him again

Former Indian Express journalist has an ‘Allah’s virus’ moment, thanks God for COVID-19, says pandemic saved Muslims from detention camps

Irena Akbar, formerly with the Indian Express, has thanked God for Covid-19 and attributed the virus to God's plan.

New York Times provides platform to Islamic bigotry, columnist claims onus to convert is on non-Muslims after Hindu boyfriend refuses to convert

The New York Times on Friday provided platform to Islamic bigotry in a blog where the author narrates her 'tragic' love story.

Panic amid pandemic: Did we get complacent as we thought we got lucky

As India struggles in second wave of coronavirus pandemic, a lowdown of how we all got complacent to the Chinese virus

Christian pastor dupes Jalandhar family of Rs 80,000, converts them to Christianity on the pretext of healing cancer

Jalandhar Pastor Balwinder Singh duped a family of Rs 80,000 promising to cure a cancer patient, and converted them to Christianity

Recently Popular

Karan Johar’s Dharma Production fires Kartik Aryan, not to work with him again: Here is what happened

Dharma Productions said it was pushed to the wall by “unprofessional behaviour” of Kartik Aryan during shooting of Dostana 2

Aaj Tak to air public apology on 23rd April for sharing fake news on Sushant Singh Rajput, pay Rs 1 lac fine: Details

Aaj Tak has been asked by the NBSA (News Broadcasting Standard Authority) to air a public apology for fake news on Sushant Singh Rajput

Andhra Pradesh man hacks family of six including two children to avenge the rape of his daughter: Details

Andhra Pradesh police confirmed that the incident was a fall out of a old feud between the accused and the victim family

Derek O’Brien’s Clubhouse interaction exposes how TMC fears the prospect of loss in West Bengal: Three statements made and what they mean

Perhaps to fire-fight what Prashant Kishor said, Derek O'Brien appeared on Clubhouse for a short interaction with select 'liberals'.

Rally of dead bodies, threats against CRPF, lying and scaring with ‘detention camps’ so people don’t vote: What viral audio of Mamata Banerjee means

Mamata Banerjee was heard telling TMC worker Partha Pratim Roy to organise a political rally with the dead bodies to stir public sympathy

Kangana Ranaut slams Karan Johar after Dharma Productions fires Kartik Aryan, tells them not to ‘force him to hang himself’ like SSR

Kangana Ranaut has hit out at Karan Johar and Dharma Productions after Kartik Aryan was fired from Dostana 2.
- Advertisement -

 

Connect with us

254,077FansLike
529,778FollowersFollow
24,200SubscribersSubscribe