Context:
National Statistics Office (NSO) Makes Changes in Periodic Labour Force Survey (PLFS) from 2025
Major Changes in PLFS:
- Monthly Release of Labour Indicators – 1st-time ever monthly updates for Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR) and Unemployment Rate (UR)
- Applicable at the all-India level, based on Current Weekly Status (CWS).
- Extended Quarterly Estimates – Now covers both rural and urban areas (previously urban-only).
- Annual Reports Aligned with Calendar Year – New cycle follows January–December format instead of July–June, ensuring better compatibility with international datasets.
- Enhanced Sample Size – Household sample size increased by 2.65 times.
- Improves accuracy and reliability of labour market indicators.
- Improved Geographical Representation – District made the primary geographic unit, enhancing localized data collection.
- Rural stratification now based on village distance –
- Within 5 km of district headquarters
- Cities/towns with over 5 lakh population
- Rural stratification now based on village distance –
Key Labour Market Terms Defined:
- Labour Force Participation Rate (LFPR) – Percentage of people working or seeking work in the total population.
- Worker Population Ratio (WPR) – Percentage of employed persons in the total population.
- Unemployment Rate (UR) – Percentage of unemployed persons among those in the labour force.
Source: MoSPI
Previous Year Question
Human capital formation as a concept is better explained in terms of a process which enables
1. individuals of a country to accumulate more capital.
2. increasing the knowledge, skill levels and capacities of the people of the country
3. accumulation of tangible wealth.
4. accumulation of intangible wealth
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2018 Prelims]
(a) 1 and 2 only
(b) 2 only
(c) 2 and 4 only
(d) 1, 3 and 4 only
Answer: (c)
Explanation:
Statement 1 and statement 3 are not correct: Human Capital Formation relates to the enhancement in the abilities of humans as a resource in himself/herself and not the accumulation of capital and tangible wealth.