Skip to main content

PLFS data: Is rising employment good news? Deeper analysis suggests contrary results

By Ishwar Chandra Awasthi, Puneet Kumar Shrivastav* 

Results of the Periodic Labour Force Survey (PLFS), 2020-21, released by the Ministry of Statistics and Programme Implementation, Government of India (GoI) on June 14, 2022, show improvement in work force participation rate (WPR) and labour force participation rate (LFPR) and declining unemployment rate. Four rounds of data have been released from 2017-18 to 2020-21 based on PLFS.
The general trend in the last four rounds clearly shows consistent increase in WPR and LFPR and falling unemployment rates by usual status (PS+SS). Though increase in WPR and LFPR is reported highest in 2019-20 over 2018-19, yet rising trend in these two key indicators continues throughout, and similarly fall in unemployment is registered highest in 2019-20 over 2018-19.
Clearly, the recent results give some solace and relief after unprecedented Covid-19 pandemic that has entailed enormous loss of human lives and livelihoods and crippled economic activities (Figure-1). However, some deeper analysis provides contrary results and clearly shows that all is not good as portrayed by these results. Some cursory analysis helps to demolish the encouraging news.
The sectoral movements of workforce indicate that primary sector employment, mainly the agriculture, shows rise of workforce during the period barring a bit slow down in 2018-19. The retrogression of workforce to agriculture somehow is not positive sign of wellbeing of workforce.
Understandably, those working in non-agriculture sector have returned to agriculture under duress conditions where real wages are lower compared to non-agriculture sector. This is certainly an employment of last resort. Employment in secondary sector stagnated and tertiary sector employment contracted in 2019-20 and 2020-21 (Figure-2). These sectors are considered better paid compared to agriculture sector.
Employment is generally disaggregated into self-employment, regular employment and casual employment. Regular paid employment is generally considered secure and better which is also a proxy of decent employment. Self-employment is considered fairly secure, though incomes from certain activities might be highly irregular, inadequate and even uncertain. However, for typical casual workers, neither duration of employment nor income is certain.
In agriculture sector, self-employment shows a modest uptrend, the regular salaried/wage employment has almost stagnated and casual employment has also declined during the period (2017-17 to 2020-21). Thus, most of the employment has occurred in self-employment in agriculture.
In the secondary sector, self-employment has generally stagnated barring in 2020-21 that saw some improvements. Regular salaried/ wage employment also stagnated and declined albeit sharply in 2020-21 compared to earlier years. Casual employment also declined or stagnated with some marginal spurt in 2020-21. In services sector, self-employment stagnated from 2017-18 to 2019-20 and later some increases were noticed in 2020-21. The regular salaried/ wage employment also stagnated and declined in 2020-21. The casual employment shows a steady decline over the years.
The rise in employment has been observed in those segments which are informal and unorganized receiving no social security and without the preview of labour laws. Undeniably, nature of employment occurred as a form of last resort or distress form of employment where people cannot afford to remain unemployed for any length of time and often forced to resort whatever employment is available (Table -1).
The newly sought information in PLFS 2020-21 reveals that 12.6 percent of the self-employed engaged in primary sector are the user or consumer of their own produced products via economic activities in which they are engaged in. Whatever they are producing is being consumed by them only.
So, the question here arises whether such economic activities should be considered as employment in real sense or it’s just a strategy for survival of livelihood. Further, one third (32%) of the self-employed individuals under primary sector do sell less than 50 percent share of their produce and rest is being used for their own consumption. Only 12.5 percent self-employed do use their entire produce for market (Figure-3).
Indeed, a country like India, where more than half of the workforce is engaged in self-employment activities, which is being promoted with sincere policy efforts by government, is still long way to go. Given evidences compel us to wonder whether all that glittering is really a gold.
---
*Dr Awasthi is Professor at Institute for Human Development, New Delhi; Dr Shrivastav is Assistant Director, National Institute of Labour Economics Research & Development (Under NITI Aayog, GoI), New Delhi. Views are personal

Comments

TRENDING

Economist-editor's allegations on Narmada defamatory, baseless: Medha Patkar

Counterview Desk  In a reply directly addressed to well-known economist, journalist and columnist Swaminathan S Anklesaria Aiyar’s two articles in the Times of India (republished here and here ), calling them defamatory and wondering whether they were borne out of “ignorance or a conspiracy through political alliance”, Narmada Bachao Andolan leader Medha Pakar has said that the Narmada Sardar Saravar Project and the people's movement by adivasis, farmers, labourers, fish workers, potters and all the generations’ old communities from the river valley have suddenly come to be focused on, since the Gujarat elections are in the doorstep. She believes that while the “defamatory accusations with baseless conceptions such as ‘urban naxals’ are to be laughed at as the electoral strategic moves, one gets shocked to read the articles by a known old columnist like Swaminathan Ankalesaria Aiyar, published in a reputed daily like the Times of India." According to her, Aiyar’s two articl

Hindutva groups threat to peace, freedom: US diaspora groups tell FBI, other govt depts

By Our Representative  The Islamophobic and neo-Nazi ideology of Hindutva is a clear and present danger to peace and freedoms in the United States, a coalition of civil rights organizations told key officials of the U.S. Attorney General’s Office, the US Department of Justice (DOJ), and the Federal Bureau of Investigation (FBI) at a recent event in Edison, New Jersey. At the event titled United Against Hate, activists from American Muslims for Democracy (AMD), Hindus for Human Rights (HfHR) and Indian American Muslim Council (IAMC) made detailed presentations on this ideology of Hindu supremacism that is committing mass persecution of India’s Muslims and Christians and is rearing its ugly head in New Jersey as well as across the US. Attending the event were David S Leonardis, Special Investigator from the New Jersey Department of Law & Public Safety; Michael E Campion, Chief of the Civil Rights Division for the US Attorney General's Office; and Jonathan R Norbut of the U.S. Dep

Facing tough times, Rajasthan's Raika herders hold first-ever camel cheese festival

By Rosamma Thomas*  During the pandemic, the annual Pushkar camel fair in Rajasthan did not occur for fear of contagion; in 2022, it was called off again as lumpy skin disease affected cattle. At Sadri in Pali district, however, festivity continues – a two-day Camel Cheese Festival was held on November 23 and 24, 2022. Visitors spent time with the camel herds and their Raika, drank camel-milk tea with the herders and then returned to lunch at the Kumbhalgarh Camel Dairy, from where the Kumbhalgarh Fort is visible, to taste camel cheese. The Raika herders have been facing a tough time – camels are no longer used as much for transport or agriculture in Rajasthan. The animals have limited utility, but their milk is prized. Camel Charisma, the dairy at Kumbhalgarh, sends camel milk across the country to people who use it in therapy – for autistic children, improved blood sugar levels, or even to treat cancer. It is believed that the health benefits of the camel milk is because the animals

As polls approach, electorate 'failing to realise': Gujarat model is in a shambles

By DN Rath*  Gujarat assembly elections, scheduled to be held on 1 and 5 December 2022, is viewed by many as dress rehearsal for the 2024 Lok Sabha elections. When the suffering people have been pointing towards redressal of some local issues like absence of cleanliness, sewage problem, shortage of water supply, troubles created by stray cattle, insufficiency of streetlights, etc., it is evident that they are not fully aware that assembly elections are being fought on ideological standpoints and policy decisions. Nor is there the realisation that the state is in a shambles and the much-trumpeted ‘Gujarat model’ of development has proved to be a hoax. Like other states, the people of Gujarat are also back-broken by steep rise in prices to the tune of 400% in last 20 years. It is not that the government cannot control the spurt in prices if it so wants. Apart from the fact that price rise is an inevitability in a capitalist economy, artificial shortage triggered by massive hoarding, b

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Shedding Hindu-Hindi-Hindustan? New Modi-Shah love for Tamil Nadu 'ignores' Periyar

By Sandeep Pandey*   The Rashtriya Swayamsewak Sangh (RSS) or the Bhartiya Janata Party (BJP) have long argued for ‘Hindu-Hindi-Hindustan’, which into recent years has translated into a crisper English expression: ‘One Nation-One Religion-One Language’. Given this backdrop, it is curious that the BJP government has organised the Kashi Tamil Sangamam in Varanasi, the Prime Minister’s constituency. Why did the BJP and RSS feel the need for such an event? All Narendra Modi events are highly publicised and have multiple political objectives. It is never an innocuous religious/cultural event as it may appear from the face of it. Afterall, RSS calls itself a cultural organisation, but has never ceased to surprise us with its political designs. Tamil Nadu has a long history of opposing imposition of Hindi by Union governments. Periyar EV Ramasamy had opposed the idea of compulsory teaching in Hindi as far back as in 1937. The 1960s witnessed violent protests against Hindi in which a number

GM mustard not swadeshi, it's a patent of MNC Bayer, GoI 'misleading' SC: Modi told

Counterview Desk  In a representation to Prime Minister Narendra Modi, as many as 42 farmers’ organisations though their representatives , backed by senior scientists and experts, have said that the Government of India (GoI) should stop misleading the Supreme Court “with untrue and incorrect” statements on GM mustard. Insisting that India does not need unsafe GM mustard, in their representation, they urged the Supreme Court to order immediate uprooting of GM mustard crop in various locations. The representation comes even as a penal of experts, coming down heavily on the GoI for refusing to see how in less than a week’s time the pollen from GM mustard will “start contaminating” non-GM mustard fields with transgenes, including male sterility and herbicide tolerant traits. Alleging that the GoI is actively misleading the Supreme Court with untrue and incorrect statements on GM mustard, Kavitha Kuruganti of the Coalition for a GM-Free India said, “We can list at least five areas where Gov

Demand to withdraw 'anti-environment, anti-adivasi' forest conservation rules 2022

By Gopinath Majhi*  The Campaign for Survival and Dignity (CSD), Odisha, a coalition of adivasis and forest dwellers’ organisations, has sent a memorandum to the Ministry of Environment, Forest and Climate Change (MoEFCC) raising serious concerns over Forest (Conservation) Rules, 2022, notified by the Centre on June 29.  Contending that recent amendments and a host of executive orders/guidelines issued by the ministry undermine and dilute the FRA and threaten the rights of adivasis and forest dwellers, CSD demands that the 2022 FC Rules should be rescinded forthwith. Demanding withdrawal of such anti-people and anti-environment rules CSD Odisha organised a protest Dharana in front of State Assembly today on 25th November 2022 and submitted memorandums to the Hon’ble Governor of Odisha, Chief Secretary and Commissioner-cum-Secretary, ST & SC Development Department for conveying our concerns against the FC Rules 2022 to the Central Government for its withdrawal. The memorandums w

BJP poll gimmick? Bilkis Bano rape case 'pardon' vs Rajiv assassins' release

By Sandeep Pandey*  Supreme Court has released six convicts in the Rajiv Gandhi assassination case. This was bound to happen as earlier AG Perarivalan was released in the same case, setting a precedent. Even though four of them are Sri Lankans but a popular Tamil sentiment favoured the release of these convicts which is why Tamil political parties supported this and resolutions were passed by different governments in Tamil Nadu to his effect.  Rajiv Gandhi paid the price of sending Indian Peace Keeping Force to Sri Lanka where it got entangled with Liberation Tigers of Tamil Eelam and eventually the whole operation ended up is a fiasco.  However, most importantly Sonia and Priyanka Gandhi and probably Rahul too do not have any objections to the release of these convicts. In fact, Sonia Gandhi played an important role in getting the death sentence of the only lady among the convicts Nalini commuted to life term through the Tamil Nadu Governor. Priyanka visited Nalini in Vellore Jail and

Never-ending saga of sin tax: What if murder is taxed at Rs 1 crore, rape at Rs 5 crore?

By Moses Raj GS, Sangeetha Thomas*  What should have ended by June 30, 2022 as a 5 year experiment has resurfaced. The government has extended the levy of GST compensation cess by another 4 years till March 31, 2026. This cess, dubbed as the sin tax imposed on sin(ful) goods, is double the highest slab on indirect taxes. But only a few pay for it and the majority benefit, unendingly. The year 2017 is a landmark year for indirect taxes. With the grand idea of ‘One Nation, One Tax’ as a fiscal slogan subsuming all State based taxes such as octroi /entry tax, Value Added Tax (VAT), sales tax, taxes on lottery, betting and gambling, luxury tax, purchase tax, entertainment tax, property tax, professional tax and central sales tax into a single framework of Goods and Services Tax (GST) changed the contours of revenue collection. Complicating it further, India, with each State having its own size and revenue problems, has the most complex and highly centralised indirect tax structure in the w