OFFICIAL STATISTICS SPECIALLY DESIGNED FOR INDIAN STATISTICAL SERVICE (ISS) AND OTHER GOVERNMENT & PRIVATE SECTOR STATISTICAL EXAMINATIONS
Get the complete book, written for ISS aspirants and every statistical exam that tests Indian official statistics.
Buy the book on Amazon.inPeriodic Labour Force Survey (PLFS) in India: LFPR, WPR, Unemployment Rate and Exam Questions for ISS
Whenever the news reports India's unemployment rate or labour force participation, the source is almost always the Periodic Labour Force Survey (PLFS) run by NSO, MoSPI. It is a regular in Indian Statistical Service (ISS) papers, and it also shows up in RBI, NABARD, SSC and university statistics exams. Since the survey now gives more frequent estimates, it is more exam-relevant than ever. This guide gives you the concept, the formulas and three exam-style questions.
1. What is the Periodic Labour Force Survey?
PLFS is India's official household survey on employment and unemployment. Started in April 2017 by the National Statistics Office (NSO), it replaced the five-yearly employment-unemployment rounds of the NSS. It tells us how many people are working, looking for work, or outside the labour force.
Why examiners love this topic
PLFS mixes definitions, ratios and survey concepts. One question can ask you to define activity status, compute LFPR, WPR and UR, or explain why two reference periods give different unemployment rates.
2. Who conducts PLFS and how?
NSO under MoSPI runs PLFS as a household survey with a stratified multi-stage sampling design. Estimates are usually reported for persons aged 15 years and above. After the recent revamp, MoSPI releases monthly, quarterly and annual results, so check the current release calendar.
Reference periods
Usual status uses the past 365 days. Current weekly status (CWS) uses the past 7 days.
Indicators
LFPR, WPR, unemployment rate, distribution of workers by status and industry, and earnings.
Classification
Every person is classified as employed, unemployed or outside the labour force.
Exam tip
Always name the status concept with any unemployment figure, for example UR (CWS). The usual-status rate and the CWS rate for the same period are different numbers, and mixing them is an easy way to lose marks.
3. Key indicators and formulas
The three headline indicators are simple ratios. Only the denominator changes.
Here P is the population of the age group, E is the number employed, U is the number unemployed, and L = E + U is the labour force.
- Identity: WPR = LFPR × (1 − UR/100). Handy for checking your answers.
- Denominator: UR is measured against the labour force, not the total population.
- Note: UR can fall even when employment is flat, if people leave the labour force.
4. Activity status at a glance
| Category | Who is included |
|---|---|
| Self-employed | Own-account workers, employers and unpaid helpers in household enterprises |
| Regular wage/salaried | Employees who get a regular salary or wage from an employer |
| Casual labour | Persons hired on a casual basis and paid daily or periodic wages |
| Unemployed | Persons without work who are seeking or available for work |
| Outside labour force | Students, persons engaged only in domestic duties, pensioners and others not seeking work |
Employed = self-employed + regular wage/salaried + casual labour. Labour force = employed + unemployed. Verify definitions against the latest PLFS instruction manual.
5. Usual status vs current weekly status: the comparison that keeps coming up
| Basis | Usual status (PS+SS) | Current weekly status (CWS) |
|---|---|---|
| Reference period | Past 365 days | Past 7 days |
| Criterion | Principal status by majority time, plus subsidiary activity of 30 days or more | Employed if worked at least 1 hour on any day of the week |
| What it captures | Long-term, structural picture | Short-term, latest picture |
| Unemployment rate | Usually lower | Usually higher |
| Best use | Annual and long-run comparison | Monthly and quarterly tracking |
6. Common mistakes students make
- Computing UR as unemployed divided by total population. The denominator is the labour force.
- Counting students and homemakers not seeking work as unemployed. They are outside the labour force.
- Comparing a usual-status figure with a CWS figure as if they were the same concept.
- Assuming only paid workers are employed. Unpaid family helpers in household enterprises are counted as employed.
- Saying PLFS is run by RBI or the Labour Bureau. It is run by NSO, MoSPI.
7. Three important questions on PLFS
Try each one on your own first, then tap the answer.
Define LFPR, WPR and the unemployment rate. How are they related?
Show answer
LFPR is the percentage of the population in a given age group that is in the labour force, that is, employed or unemployed. WPR is the percentage of the population that is employed. UR is the percentage of the labour force that is unemployed. They are linked by WPR = LFPR × (1 − UR/100).
In a district, the population aged 15 years and above is 1,000 (in thousands). Of these, 380 are employed and 20 are unemployed (in thousands). Compute LFPR, WPR and UR, and verify the identity connecting them.
Show answer
Labour force L = 380 + 20 = 400 (thousands).
LFPR = 400 / 1000 × 100 = 40%. WPR = 380 / 1000 × 100 = 38%. UR = 20 / 400 × 100 = 5%.
Check: LFPR × (1 − UR/100) = 40 × 0.95 = 38 = WPR. The identity holds.
Distinguish between the usual status and current weekly status approaches in PLFS. Why do they give different unemployment rates, and when is each preferred?
Show answer
Write your answer in four parts. (a) Concepts: usual status uses a 365-day reference period; the principal status is the activity on which most time was spent, and a subsidiary status is any other activity for 30 days or more. CWS uses the past 7 days, and a person is employed if she or he worked at least one hour on any day of that week. (b) Why rates differ: CWS picks up short spells of joblessness and seasonal swings, whereas usual status treats many people as employed if they worked for most of the year or in a subsidiary activity. So UR (CWS) is generally higher than UR (usual status). (c) Preferred use: usual status suits structural, annual analysis and comparison with earlier NSS rounds; CWS suits frequent tracking of the labour market. (d) Conclusion: report both where possible, and always state the reference period.
Key takeaways
- PLFS is the official labour force survey of India, run by NSO, MoSPI.
- LFPR and WPR use the population as denominator; UR uses the labour force.
- WPR = LFPR × (1 − UR/100) is a quick check for numerical answers.
- Usual status (365 days) and CWS (7 days) give different unemployment rates. Never mix them.
Everything on Official Statistics, in one book
PLFS is just one chapter of the syllabus. If you want the complete picture, this book is built for you.
- Indian official statistical system: MoSPI, NSO, NSC and the data they produce
- National accounts, GDP, IIP, price indices and labour statistics
- NSS surveys, sampling designs and data quality concepts
- Written specially for the ISS exam, and useful for other government and private sector statistical exams
- Concept-focused notes to revise quickly before the exam
Official Statistics for ISS and other Government & Private Sector Statistical Examinations