Explain the methodology used in the Periodic Labour Force Survey (PLFS).

Explain the methodology used in the Periodic Labour Force Survey (PLFS).

Answer:

PLFS was launched in 2017 to provide annual and quarterly labour market indicators.

1. Objectives

• Estimate Labour Force Participation Rate (LFPR)

• Worker Population Ratio (WPR)

• Unemployment Rate (UR)

• Quarterly estimates for urban areas

  
  

2. Sampling Design

(a) Sampling Frame

• Urban: Latest Urban Frame Survey (UFS)

• Rural: Census villages (separately listed)

(b) Type of Design

• Multi-stage stratified sampling

(c) First-stage units (FSU)

• Rural: Villages

• Urban: UFS Blocks

(d) Second-stage units (SSU)

• Households

3. Rotational Panel Scheme

PLFS uses four-visit rotation, similar to international practice.

Visit	Households	Purpose
1st	New	Baseline
2nd	75% retained	Urban only
3rd	75% retained	Urban only
4th	75% retained	Urban only

Rural areas: only one visit.

4. Estimation Procedure

• Uses ratio estimation with population projections.

• Urban quarterly estimates use panel data.

• Annual estimates combine data from all visits.

  
  

5. Key Indicators

• Usual Principal Status (UPS)

• Usual Principal & Subsidiary Status (UPSS)

• Current Weekly Status (CWS)

• Current Daily Status (CDS) (used earlier but now limited)

  
  

6. Challenges

• Urban non-response high.

• Informal sector measurement difficult.

• COVID created disruptions in 2020.

7. Conclusion

PLFS is India’s most important labour-force dataset and internationally comparable due to its rotational panel design.