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    Question

    Labour indicators recorded a sharp, all-round improvement in 2020-21 (July-June) compared with the previous three years, data released by the National Statistical Office (NSO) on Tuesday showed. The annual report of the Periodic Labour Force Survey for July 2020 to June 2021 showed that the unemployment rate, as per usual status (reference period of last 365 days preceding the survey), eased to _________ per cent from 4.8 per cent in 2019-20. As per the current weekly status (reference period of one week) — contrary to perceived expectations of a likely hit on jobs — unemployment rate eased to 7.5 per cent in 2020-21 from 8.8 per cent. But there is a catch: while the overall employment situation showed improvement, the rise was seen mostly in low-quality, unpaid work. While the overall employment situation showed improvement, the rise was seen in low-quality, unpaid work. Employment in the unpaid self-employed category continued to show an increase in 2020-21 by rising to 17.3 per cent from 15.9 per cent in 2019-20 and 13.3 per cent in 2018-19. Rural unpaid employment also showed increase to 21.3 per cent in 2020-21 from 20.0 per cent in the previous year, while that for urban areas increased to 6.3 per cent from 5.7 per cent.

    Consider the following Statements about PLFS and choose the option with correct Statements.

    (I)- PLFS estimates the key employment and unemployment indicators in the short time interval of three months for the urban areas only in the ‘Current Weekly Status’ (CWS).

    (II)- It estimates employment and unemployment indicators in both ‘Usual Status and CWS in both rural and urban areas annually.

    (III)- There have been more than 10 Annual Reports covering both rural and urban areas giving estimates of all important parameters of employment and unemployment in both usual status and current weekly status.

    A Only I Correct Answer Incorrect Answer
    B I & II Correct Answer Incorrect Answer
    C Only III Correct Answer Incorrect Answer
    D I, II, & III Correct Answer Incorrect Answer
    E I & III Correct Answer Incorrect Answer

    Solution

    The objective of PLFS is primarily twofold: to estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the ‘Current Weekly Status’ (CWS). to estimate employment and unemployment indicators in both ‘Usual Status’ (ps+ss) and CWS in both rural and urban areas annually. Three Annual Reports covering both rural and urban areas giving estimates of all important parameters of employment and unemployment in both usual status (ps+ss) and current weekly status (CWS) have been released. These three Annual Reports are brought out on the basis of data collected in PLFS during July 2017- June 2018, July 2018-June 2019 and July 2019-June 2020. Now the fourth Annual Report is being brought out by NSO on the basis of Periodic Labour Force Survey conducted during July 2020-June 2021. Usual Principal Status (PS): The activity status on which a person has spent relatively longer time (183 days or more) during the period is considered the usual principal activity status of the person. A person unemployed under this approach indicates chronic unemployment. The Current Weekly Status (CWS) approach to measuring unemployment uses seven days preceding the date of survey as the reference period. A person is considered to be employed if he or she pursues any one or more of the gainful activities for at least one-hour on any day of the reference week. On the other hand, if a person does not pursue any gainful activity, but has been seeking or available for work, the person is considered as unemployed.

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