Home Employment PLFS vs. Perception: India Defends Accuracy of Job Market Data

PLFS vs. Perception: India Defends Accuracy of Job Market Data

India-jobless-data-is-not-accurate
India-jobless-data-is-not-accurate

JULY 23: The Government of India has strongly rebutted the claims made in the Reuters article dated 22 July 2025 titled “Official India jobless data is not accurate, say top independent economists.” In an official statement released by the Press Information Bureau (PIB), the government termed the article methodologically flawed, asserting that it is based on unverifiable perceptions rather than credible, data-driven evidence.

The rebuttal highlights that Reuters relied on the opinions of around 50 unnamed economists without providing transparency about their selection, background, or the nature of questions posed to them. Such a perception-based poll, the statement argues, lacks the statistical rigor needed to challenge official employment data. It neither references large-scale empirical research nor discloses details about sampling variability or data validation, thereby undermining its credibility.

In contrast, the government underscored the reliability of the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO). The PLFS is a globally recognized and scientifically designed survey that employs a multi-stage random sampling framework covering both rural and urban regions. Since January 2025, it has introduced monthly estimates in addition to annual and quarterly data, enabling more granular and timely labour market analysis.

The PLFS methodology aligns with international standards, including those of the International Labour Organization (ILO). Its datasets are widely used by global institutions such as the World Bank, UNDP, and ILOstat for comparative employment studies and Sustainable Development Goals (SDG) reporting. The government emphasized that PLFS documentation, sampling design, and error margins are publicly available, ensuring complete transparency and independent scrutiny.

According to PLFS data, India’s labour indicators have shown consistent improvement. The Labour Force Participation Rate (LFPR) for individuals aged 15 years and above has risen from 49.8% in 2017–18 to 60.1% in 2023–24, while the Unemployment Rate (UR) has declined from 6.0% to 3.2%. Youth unemployment dropped from 17.8% to 10.2%, a rate lower than the global average of 13.3% reported by the ILO. Formal job creation has also surged, with over 1.29 crore net EPFO subscribers added in 2024–25.

The statement concluded that Reuters’ narrative misrepresents India’s employment situation, which, backed by official statistics, reflects growth, rising earnings, and expanding job opportunities across emerging and traditional sectors.