Lok Sabha Question No. 1521 (UNSTARRED), answered on 2024-12-04
Subject: Methodological differences between different Labour Surveys
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Shri Asaduddin Owaisi

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA UNSTARRED QUESTION NO. 1521 TO BE ANSWERED ON 04.12.2024

## METHODOLOGICAL DIFFERENCES BETWEEN DIFFERENT LABOUR SURVEYS

## 1521. SHRI ASADUDDIN OWAISI:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a) whether it is true that there are differences in the Labour Force Participation  Rate  (LFPR)  and  Unemployment  Rate  (UR)  as reported by the Periodic Labour Force Survey (PLFS), Centre for Monitoring  Indian  Economy  (CMIE)  and  International  Labour Organization (ILO);
- (b) if  so, the details of the main methodological differences among PLFS, CMIE and ILO surveys in defining and estimating LFPR and UR;
- (c) the rationale for the Government's chosen methodology in PLFS; and
- (d) whether any measures are being considered to harmonise it with other agencies to improve comparability of labour market data, if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS  AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CULTURE [RAO INDERJIT SINGH]

(a) to (d): The Ministry  of  Statistics  and  Programme  Implementation (MoSPI)  has  been  conducting  Periodic  Labour  Force  Survey  (PLFS) since 2017 to estimate various indicators related to employment and unemployment situation in the country. PLFS gives estimates of key employment  and  unemployment  Indicators  like  the  Labour  Force Participation Rates (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), etc. The  ILO  cites  PLFS as  the  source  of employment  unemployment  statistics  in  respect  of  India  on  its ILOSTAT  database.  However,  the  comparability  of  PLFS  estimates with  those  of  private  agencies  such  as  CMIE  is  not  maintained  in MoSPI.

Considering the importance of availability of labour force data at more frequent  time  intervals,  on  the  recommendation  of  the  National Statistical  Commission  (NSC),  MoSPI  constituted  a  Committee  on PLFS  under  the  Chairpersonship  of  Prof.  Amitabh  Kundu,  the  then Member, NSC to develop the survey methodology including the sample design for generating monthly/quarterly labour market data. Subsequently, as a follow-up action on the recommendation made by the  NSC,  a  Standing  Committee  on  Labour  Force  Statistics  (SCLFS) was constituted  by  MoSPI  on  12.11.2014  under  the  Chairmanship  of Prof. S. P. Mukherjee, Emeritus Professor, University of Calcutta. The SCLFS decided that the PLFS would also be used to collect data on some  aspects  of  the  quinquennial  employment  and  unemployment survey  covering  both  rural  and  urban  areas,  besides  retaining  the feature of PLFS to generate quarterly estimates of level and change parameters for only urban areas. Accordingly, SCLFS made recommendations  with  respect  to  the  structure  of  the  Schedule  of Enquiry, Sampling Design, etc., which were adopted for PLFS.

The concepts and definitions in the surveys of MoSPI are formulated conforming to various standards. Further, various facets of internationally accepted standards on labour statistics are studied in MoSPI  to  assess  their  applicability  and  relevance  in  the  country context.