Government clarifies data on labour force participation rate

New Delhi, April 26 Reacting to a news item in some section of the media regarding decrease in Labour Force Participation Rate (LFPR) in the country, the Ministry of Labour and Employment said on Tuesday that employment is the primary concern of the government and various steps are being taken by the ministries/departments for generation of employment opportunities in the country.

Explaining that the LFPR is the percentage of population which is either working (employed) or seeking work (unemployed), the government said, "It is important to note that the complete working age population may not be working or seeking work."

A substantial portion of the working age population is either pursuing education or is engaged in unpaid activities like production of goods for their own consumption, unpaid domestic activities or caregiving services for household members, volunteering, training, etc.

"Thus, making an inference by some sections of the media that half of the working age population has lost hope for work is factually incorrect," the ministry said in a statement.

As per the reports of the Ministry of Education for 2019-20, more than 10 crore persons were enrolled in secondary, higher secondary, higher or technical education, out of which about 49 per cent were female, the government said.

Majority of these students pursuing higher education are in the working age population, but all of them may not be seeking work. Similarly, not all females engaged in unpaid domestic services may be seeking paid work.

The government also said that the Periodic Labour Force Survey (PLFS) data indicate that the labour force and work force in the country has increased steadily from 2017-18 to 2019-20, while the unemployment rate has declined.

"It is further evident from the data that the increase in female labour force as well as female working population ratio during 2017-18 to 2019-20 was higher compared to increase in male labour force and working population ratio," it said.

The government also quoted the Economic Survey 2021-22 estimates that indicate there was an increase of 4.75 crore in employment during 2019-20 as compared to 2018-19.

"The increase in labour force during 2019-20 compared to previous year was 4.52 crore. Thus, during 2019-20, more employment was generated than the increase in the labour force in the country," the government claimed.

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