GS3 · 10 marks · 150 words

Explain the significance of the recent changes made to the Periodic Labour Force Survey (PLFS) with respect to labour market data estimation in the country.

Answered by 3 toppers · CSE 2025

EmploymentMacroeconomic Indicators

Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

How toppers approached it

From all 3 answers · about 150 words.

Opening

  • A definition1 of 3
  • No separate opening1 of 3
  • A restatement1 of 3

Body

  • Points3 of 3

Close

  • A summary2 of 3
  • A way forward1 of 3

The toppers’ answers

Ujjwal PriyankAIR 10 · CSE 2025 · 162 wordsTheir whole copy

Opening · a restatement

The Periodic Labour Force Survey (PLFS) carries out market survey of the Indian economy to bring out key data on unemployment rate in India.

The recent change was made to give monthly data on the unemployment rate in India since April 2025.

Body · points

Significance of the changes.

  1. It helps bring more frequent and current data. Eg: 5.1% unemployment in urban areas in April 2025.

  2. It reduces the consideration period for analysing the period for which a person was employed.

  3. Enhances the quality of governance through better contextual insights.

  4. Ensures effective structural changes to reduce underemployment.

  5. Timely implementation of schemes such as Employment-linked incentives.

  6. Shift from "usual status" which used to ask for previous 182 days. -> This ensures better recall of employment duration.

Challenges -> 90% workers in the unorganised sector -> underreporting of data -> Poor adoption of technology

Close · a way forward

There is a need to push labour-oriented industries reform for better employment elasticity in economy.

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