Why in the News?
- In August 2025, the Ministry of Statistics and Programme Implementation released the Periodic Labour Force Survey quarterly data (April–June 2025) and the monthly bulletin (July 2025).
- The Periodic Labour Force Survey provides estimates on employment and unemployment trends in India.
- The unemployment rate declined to 2 percent in July 2025, compared to 5.6 percent in June 2025.
What is the Periodic Labour Force Survey (PLFS)?
- The Periodic Labour Force Survey (PLFS) was launched by the National Statistical Office (NSO) in 2017 to provide more frequent labour market statistics.
- Its first annual report (2019) covered the period July 2017 – June 2018.
- The survey’s primary aim is to generate:
- Quarterly estimates of key labour market indicators (for urban areas).
- Annual estimates for both rural and urban regions.
- PLFS uses the Current Weekly Status (CWS) approach, under which a person is considered unemployed if they did not work for at least one hour during the reference week but were available for or seeking work.
- Key Indicators
- Labour Force Participation Rate (LFPR): The percentage of persons in the labour force (working or seeking or available for work) in the population.
- Worker Population Ratio (WPR): Share of employed individuals in the total population.
- Unemployment Rate (UR): Share of unemployed persons among the labour force.
- As per the ILO (International Labour Organisation), unemployment refers specifically to people who are without work but actively seeking jobs; it is not the same as being simply jobless.
- Activity Status
- Usual Status (US): Based on the principal activity pursued during the last 365 days before the survey.
- Current Weekly Status (CWS): Based on activity during the 7 days prior to the survey.
- Comparison: Unemployment under Usual Status is generally lower than CWS, since the likelihood of finding some work in a year is higher than within a week.
| About ILO (International Labour Organisation)
1. The ILO is a specialized agency of the UN focused on improving labour standards, promoting social justice, and ensuring decent living and working conditions worldwide. 2. Established in 1919 under the Treaty of Versailles (post–World War I), based on the principle that lasting peace must rest on social justice. 3. In 1946, it became the first specialized agency of the United Nations. 4. Headquarters: Geneva, Switzerland. 5. Also a member of the UN Development Group (UNDG), supporting efforts to achieve the Sustainable Development Goals (SDGs). 6. Unique Feature: The only tripartite UN agency, bringing together governments, employers, and workers from member states in its decision-making. 7. Function: The ILO works through its tripartite framework to: a. Formulate international labour policies and programmes to protect rights, improve living and working conditions, and expand employment opportunities. b. Develop international labour standards with a monitoring system to ensure compliance. c. Provide technical cooperation and assistance to help member states implement labour policies effectively. d. Promote training, education, and research in labour and employment-related fields. 8. Recognition: Awarded the Nobel Peace Prize in 1969 for advancing peace and justice through labour rights. |
Key Highlights of the Survey
- Labour Force Participation Rate:
- Rural and Urban Combined:
| July 2025 | June 2025 | |
| Women | 25.5% (marginal increase) | 24.5% |
| Men | 57.4% (almost same) | 57.4% |
| Overall | 41.4% (marginal Increase) | 41% |
- For people aged 15 years and above
| July 2025 | Rural Areas | Urban Areas |
| Men | 78.1% | 75.1% |
| Women | 36.9% | 25.8% |
| Overall | 56.9% | 50.7% |
- Unemployment Rate
| July 2025 | Rural Areas | Urban Areas | Rural + Urban |
| Men | 4.6% | 6.7% | 5.3% |
| Women | 3.9% | 8.7% | 5.1% |
| Overall | 4.4% | 7.2% | 5.2% |
- Worker Population Ratio (WPR)
| July 2025 | Rural Areas | Urban Areas | Rural + Urban |
| Men | 54.1 | 54.8 | 54.3 |
| Women | 26.6 | 18.9 | 24.2 |
| Overall | 40.2 | 37.2 | 39.2 |
- Around 57% of individuals (55% of households) surveyed were from rural areas, while 43% of individuals (45% of households) were from urban
Implications of the Survey Findings
- Gender Gap in Labour Force Participation
- Women’s participation remains significantly lower than men (25.5% vs. 57.4% overall).
- Rural women’s participation (36.9%) is higher than urban women’s (25.8%), reflecting barriers in cities like limited flexible jobs and safety issues.
- Rural–Urban Disparities
- Labour Force Participation Rate (LFPR) is higher in rural areas (56.9%) than urban (50.7%).
- This suggests agriculture and informal activities in rural regions continue to absorb a large workforce, while urban areas are still struggling to generate sufficient jobs.
- Unemployment Trends
- Overall unemployment declined to 5.2%, indicating a marginal improvement in the labour market.
- However, women in urban areas face much higher unemployment (8.7%) compared to rural women (3.9%), showing urban labour markets are not inclusive enough for women.
- Worker Population Ratio (WPR) Insights
- Men’s employment levels are steady across rural and urban areas (around 54–55%).
- Women’s WPR remains very low, especially in urban areas (18.9%), pointing to underutilisation of women’s potential in the workforce.
- Household & Individual Distribution
- With ~57% of individuals surveyed from rural areas, the data reflects the continuing demographic weight of rural India in employment statistics.
- It underscores that policies cannot be urban-centric; rural job creation remains critical.
- Policy Takeaways
- For Women: Need for targeted interventions such as skill training, flexible employment, childcare support, and safe workplaces.
- For Rural India: Focus on diversifying non-farm employment and enhancing productivity in agriculture.
- For Urban India: More inclusive job creation strategies, particularly for women and youth.
- Overall: Continued monitoring through PLFS helps in real-time policy adjustments to tackle unemployment and boost participation.
Challenges and Way Forward
| Challenges | Way Forward |
| Low Female Labour Force Participation | Promote flexible work models, childcare facilities, safe transport, and gender-sensitive workplace policies. |
| High Urban Unemployment among Women | Encourage women-focused skilling programs, entrepreneurship schemes, and greater inclusion in formal sector jobs. |
| Rural–Urban Disparities in LFPR and WPR | Strengthen rural non-farm employment, boost MSMEs, and improve urban job creation through labour-intensive industries. |
| Dependence on Informal Sector in Rural Areas | Expand social security coverage, formalisation of jobs, and enhance rural infrastructure for productive employment. |
| Youth Unemployment | Align education with market needs, expand apprenticeships, and create start-up ecosystems for young workers. |
Conclusion
The PLFS July 2025 findings reflect a slight improvement in overall unemployment but also highlight persistent structural challenges, notably the gender gap, rural-urban divide, and underutilisation of youth and women in the workforce. Going forward, policies must balance rural job diversification with urban employment generation, while ensuring that women and youth are at the center of inclusive growth strategies.
| Ensure IAS Mains Question
Q. Despite a marginal fall in unemployment, the PLFS July 2025 findings highlight deep-rooted gender and rural-urban disparities in India’s labour market. Discuss the structural challenges and suggest policy measures to address them. (250 words) |
| Ensure IAS Prelims Question
Q. Which of the following best explains the difference between Usual Status and Current Weekly Status in the Periodic Labour Force Survey? a) Usual Status records activity in the past one month, while Current Weekly Status records the activity in the past year. b) Usual Status records activity in the past year, while Current Weekly Status records the activity in the past week. c) Usual Status and Current Weekly Status both record weekly activity but use different recall methods. d) Usual Status and Current Weekly Status both record yearly activity but differ in seasonal adjustments. Answer: b) Usual Status records activity in the past year, while Current Weekly Status records the activity in the past week. Explanation: 1. Usual Status: Considers the principal activity of a person during the last 365 days preceding the survey. 2. Current Weekly Status (CWS): Considers the activity status of a person during the 7 days preceding the survey. 3. Difference: Usual Status generally shows lower unemployment rates because an individual may find some work over an entire year, while CWS often captures higher unemployment since a person may be without work during a specific week. |
