Let’s not misread labour force data

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Employment numbers from the annual Periodic Labour Force Surveys (PLFS) for the July-June period from 2017-18 to 2022-23 present what seems to be a positive picture of India’s labour market in the last five years. The figures show that the labour force participation rate (LFPR) — the share of people who are either working or are looking for work — increased during the period. They also show a fall in the unemployment rate, with the number of jobs growing at a faster pace than the number of job-seekers. The LFPR increased from 36.9% in 2017-18 to 42.4% in 2022-23. The unemployment rate is shown to have declined from 6.1% to 3.2% during this period. These are impressive numbers. 


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