A Step Backward

Context: PLFS reveals transformation of economy has stalled.

Takeaways from the recent PLFS survey

• Positive development – Decline in unemployment: Unemployment rate declined to 4.8% in 2019-20.
• Key concerns:
  • Covid related rise in unemployment not captured in PLFS survey: The Centre for Monitoring Indian Economy (CMIE) survey shows that unemployment rose to 8.3% in August 2021, an increase of over a percentage point from 7% in July.
  • Huge job loss in manufacturing sector: According to CMIE, manufacturing sector alone has lost 100 million jobs.
  • Less remunerative and less secure jobs are on rise: Share of regular salaried workers has been declining.
  • Informalisation: Non-agriculture workforce in informal sector rose to almost 70%. Sharp rise of 2.6% points in proportion of people working in household enterprises.
  • Gender divide: Women are working more due to unpaid family workers in Agriculture.
  • Structural regression in employment: That is, there is a 3% increase in agriculture employment.

Conclusion: PLFS indicates that India – far from modernising and formalising its economy, seems to be moving backwards in terms of the employment available.