Relevance: GS-III (Employment & Inclusive Growth) | Source: NSO–PLFS

News

The latest Periodic Labour Force Survey (PLFS) shows that India’s unemployment rate fell to 4.7% in November, the lowest since April. The Labour Force Participation Rate (LFPR) also rose to 55.8%, mainly because more people in rural areas entered the labour market. Urban participation remained broadly stable.

Key Concepts 

  • Unemployment Rate:
    The share of people who want to work, are available for work, but cannot find jobs.
  • Labour Force Participation Rate (LFPR):
    The proportion of people aged 15 years and above who are either working or actively seeking work.
    A rising LFPR often shows that more people feel hopeful about finding jobs.
  • Worker Population Ratio (WPR):
    The percentage of the population that is actually employed.
  • Female LFPR:
    The participation of women in the labour market has been gradually improving — rising from 32% in June 2025 to 35.1% in November 2025 — but still remains far below global averages.

Institution involved:

  • National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.

How PLFS Collects Employment Data (Very Brief)

PLFS uses two measures:

  • Current Weekly Status (CWS): work status in the last 7 days.
  • Usual Status: dominant activity over the last 12 months.

November’s survey covered 3.73 lakh people across rural and urban regions.

India’s Broader Employment Picture 

While headline unemployment has declined, India still struggles with low female participation, underemployment, and the need for better-quality jobs, especially in urban areas.

UPSC Value Box 

Labour Force Participation Rate (LFPR): The proportion of people aged 15 years and above who are either working or actively seeking work.

National Statistical Office (NSO): The central agency responsible for conducting the Periodic Labour Force Survey (PLFS) to estimate employment, unemployment, LFPR and other labour indicators in India.

Q. With reference to the Periodic Labour Force Survey (PLFS), consider the following statements:

  1. PLFS provides employment estimates using both short-term and long-term status indicators.
  2. LFPR includes all persons who are employed or seeking employment.
  3. A rise in female LFPR always indicates improved employment opportunities for women.

How many statements are correct?
A. One only
B. Two only
C. All three
D. None

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