The government is contemplating increasing the frequency of job data surveys to monthly for urban areas and quarterly for rural areas, a senior official stated.
Currently, the Ministry of Statistics and Program Implementation (MoSPI) conducts the Periodic Labor Force Survey (PLFS) quarterly for urban areas and annually for rural areas.
The latest urban survey for the March quarter of FY24 was released in May. The annual rural survey for July 2022-June 2023 was published last October.
“Providing employment data more frequently has been a government priority. We are examining alternatives to see if we can enhance the frequency of existing PLFS surveys to better capture labor market trends,” the source said.
Developed nations typically release job data monthly, which markets and economists use to gauge economic resilience. The dominance of India’s informal economy has so far complicated the frequent tracking of employment data.
The quarterly survey methodology uses the current weekly status (with a seven-day reference period). The annual PLFS for rural areas relies on the usual status (with a 365-day reference period).
According to the latest quarterly estimate, the urban unemployment rate rose to 6.7 percent for the March quarter of FY24, up from 6.5 percent in the previous quarter.
“Efforts are underway to utilize available technological tools. The current computer-based methodology allows the ministry to immediately record responses on its server and ensures real-time data validation. These efforts aim to provide data useful to policymakers, with a goal of moving such indicators to monthly publications,” the official added.
India’s employment data has been a contentious issue for the government and economists.
Private agencies like the Center for Monitoring the Indian Economy (CMIE) have become a key reference for unemployment data due to its duration and higher frequency.
Besides MoSPI, other ministries, including the Ministry of Labor, conduct employment surveys like the Quarterly Employment Survey (QES).
Unlike the PLFS, which offers a supply-side view of the labor market, the QES provides a demand-side perspective.
The QES results are significantly delayed, with the last survey pertaining to Q2 of FY23. Subsequent rounds’ results have yet to be released.