To account for the job outlook in India in a better way, Prime Minister Modi has replaced the existing Annual Employment Unemployment Survey with Periodic Labour Force Survey (PLFS). On the recommendation of the task force on employment, Modi led government on Monday set up a technical committee under TCA Anant, former chief statistician, to now include larger sample with improved survey methodologies to compute job creation.
In a statement, the ministry of labour and employment said, "the new survey would not only have annual data on employment-unemployment on rural sector but will also have quarterly data on employment-unemployment on urban sector based on larger sample size". The ministry further added, the corresponding AEUS data set would be comparable.
On a monthly basis, the ministry comes out with payroll data which reflects the formalization of jobs in the country. Additionally, on the employment front, two more major surveys are conducted by the Labour Bureau namely Annual Employment-Unemployment Survey (EUS) and Quarterly Employment Survey (QES). But the Quarterly survey has its own limitations in the sense that it takes into account the employment size of just 2.40 crore employees in comparison to the total employee strength of close to 47 crore in the country.
Earlier Assocham said for any developing economy, the payroll data is crucial to align different policies such as the ones concerning interest rates, welfare schemes, taxation and investment incentives.