What is the objective of the PLFS conducted by NSO?

What is the objective of the PLFS conducted by NSO? Answer:

The Periodic Labour Force Survey (PLFS), launched in April 2017 by the NSO (earlier NSSO), was designed to provide more frequent and timely data on employment and unemployment in India.

• Main objectives:

  1. To estimate key labour force indicators like Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).

  2. To provide annual estimates (July–June) for both rural and urban areas.

  3. To provide quarterly estimates (urban only) for key labour force indicators, thus making labour statistics more current.

  4. To capture informal sector dynamics and help in policy formulation for jobs, skilling, and welfare schemes.

This was a significant improvement because India earlier relied on Employment–Unemployment Surveys (EUS) conducted every 5 years, which were infrequent and often outdated by the time of release.

Follow-up:

How does it differ from the earlier Employment–Unemployment Surveys (EUS) of NSSO?

• Frequency:

  • EUS: Conducted once every 5 years (last major round in 2011–12).

  • PLFS: Conducted continuously, with annual reports (rural + urban) and quarterly bulletins (urban).

• Timeliness:

  • EUS results came with a lag, limiting their usefulness for policymaking.

  • PLFS ensures real-time monitoring of labour markets.

• Design:

  • PLFS uses a rotating panel design in urban areas → households are surveyed in four consecutive quarters.

  • This allows tracking of short-term employment fluctuations.

• Coverage:

  • Both cover rural + urban, but only PLFS gives quarterly urban updates.

👉 In short, PLFS is more dynamic, timely, and policy-relevant than the older EUS.

Cross-question:

Can PLFS provide reliable quarterly estimates for rural areas?

• Current limitation:PLFS provides quarterly estimates only for urban areas, not rural. This is because:

  • Rural employment is highly seasonal (harvest, sowing cycles).

  • Capturing rural employment quarterly would require very large samples to ensure statistical reliability.

• Possible in future?Technically yes, but it would need:

  • Larger sample size,

  • Better resources for field surveys,

  • Adjustments for seasonality.

👉 As of now, quarterly PLFS estimates are reliable only for urban India; for rural India, only annual estimates are provided.