Statement by the Ministry of Labor and Employment on an article in some media regarding the declining labor force participation rate (LFPR) in the country | Odisha News | Latest news from Odisha

New Delhi: Employment is the main concern of the Indian government and various measures are taken by ministries/departments to create job opportunities in the country.

The labor force participation rate (LFPR) is the percentage of the population that is working (employed) or looking for work (unemployed). It is important to note that the entire population of working age may not be working or looking for work. A significant portion of the working-age population is in education (secondary/tertiary/technical education) or engaged in unpaid activities such as production of goods for own consumption, unpaid household activities or care services to members of the household, volunteering, training, etc. Thus, to make an inference by any part of the media that half of the working-age population has lost all hope of a job is factually incorrect.

According to Ministry of Education reports for the year 2019-20, more than 10 crores no one was enrolled in secondary, upper secondary, tertiary or technical education in 2019-20, of which around 49% were women. The majority of these students pursuing higher education are part of the working-age population, but not all of them may be looking for work. Similarly, not all women engaged in unpaid domestic services for household members may be seeking paid work.

The authentic data source of Employment/Unemployment Indicators in India is published by the Ministry of Statistics and Program Implementation (MoSPI) through the Periodic Labor Force Survey (PLFS) which is conducted since 2017-18. The latest PLFS annual report is available for the 2019-20 survey period. According to the annual report of the PLFS, the labor force participation rate (LFPR), the labor force ratio (WPR) and the unemployment rate (UR) in the usual situation for people aged 15 and over were the following:


Male Female Total Male Female Total Male Female Total
2017-18 71.2 22.0 46.8 75.8 23.3 49.8 6.1 5.6 6.0
2018-19 71.0 23.3 47.3 75.5 24.5 50.2 6.0 5.1 5.8
2019-20 73.0 28.7 50.9 76.8 30.0 53.5 5.0 4.2 4.8
  • PLFS data indicate that the Working population and labor force in the country possesses increased steadily from 2017-2018 to 2019-2020 And on the other hand The unemployment rate has fallen.
  • It is further apparent from the above data that the increase in the female labor force as well as female labor force ratio during the year 2017-18 to 2019-20 is upper compared with increase in male labor force/labour force ratio.

the Economic Survey 2021-22 estimated the total number of people in the labor force, employment and unemployment for all ages and in usual situation for the year 2017-18, 2018-19 and 2019-20 based on the PLFS report, which are The following :

(in crore)

Year Active population Job Unemployment
2017-18 50.95 47.14 3.83
2018-19 51.82 48.78 3.04
2019-20 56.34 53.53 2.81
  • Estimates from the 2021-22 economic survey indicate that there has been a increase of 4.75 crore in employment in 2019-2020 compared to 2018-19.
  • the increase in labor force during 2019-20 compared to the previous year was 4.52 crore.
  • Thus, in 2019-20, more jobs have been created as the increase in the labor force in the country.

Quarterly PLFS reports for the urban sector are available through September 2021. Quarterly labor force data indicate that although the labor force declined during the 1st wave of the Covid-19 pandemic, however, as the economy recovered in subsequent quarters of 2020-21, the labor force experienced a rapid recovery.

The Quarterly Employment Survey (QES), conducted by the Labor Bureau, aims to assess the employment situation in nine selected sectors of India’s non-farm economy in successive quarters. Total estimated employment in the nine selected sectors from the first round of QES (April to June 2021) is around 3.08 crores compared to a total of 2.37 crores in these sectors taken collectively, as shown in the sixth economic census (2013-14), reflecting a growth rate of 29%.

Total estimated employment in the nine sectors selected in the second round of QES (July-September 2021) stood at around 3.10 crore, which is 2 lakhs higher than the estimated employment (3.08 crore) of the first round of QES (April-June 2021).

Payroll data from the Employees Provident Fund Organization (EPFO) covers low-wage workers in medium and large establishments in the formal sector. The net increase in EPFO ​​contributions is an indicator of the extent of job creation/labour market formalization and coverage of social security benefits to the organized sector workforce/ semi-organized. The latest payroll data released by EPFO ​​on 20.04.2022 shows that there is a net addition of ETH subscribers of 14.12 lakh in the month of February 2022. Furthermore, the latest payroll data net addition indicate that the net addition of EPF subscribers increased by 44% during 2021-22 (through February 2022) compared to the year 2020-21.

The other indicators of economic activities such as gross GST collection at a record high in the month of March 2022 and India’s record level of overall exports in FY 2021-22 also support a positive trend of creation. jobs in the country.

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