Employment and poverty are two of the most important “social issues” in RBI Grade B ESI and NABARD papers, both for objective questions and descriptive answers. This guide explains the concepts and gives the latest numbers.
Measuring employment: PLFS
The Periodic Labour Force Survey (PLFS), run by the National Statistics Office (MoSPI), started in 2017. Since January 2025, it gives monthly estimates for rural and urban India.
| Term | Formula / meaning |
|---|---|
| Labour Force Participation Rate (LFPR) | (Employed + unemployed seeking work) ÷ Population × 100 |
| Worker Population Ratio (WPR) | Employed ÷ Population × 100 |
| Unemployment Rate (UR) | Unemployed ÷ Labour force × 100 |
| Usual status | Activity over the last 365 days (principal + subsidiary status) |
| Current Weekly Status (CWS) | Activity in the last 7 days (used for monthly estimates) |
Latest monthly PLFS (September 2026, CWS, age 15+)
| Indicator | All-India | Rural | Urban |
|---|---|---|---|
| Unemployment rate | 5.0% | 4.2% | 6.9% |
| LFPR | 55.5% | 58.0% | 50.7% |
| WPR | 52.7% | 55.5% | 47.2% |
| Female LFPR | 34.6% | 38.9% | 25.9% |
Monthly CWS figures are higher than the annual usual-status unemployment rate (about 3.2% in PLFS 2023-24), because they use a shorter reference period. Female LFPR has risen sharply since 2017-18 (approx 23% then).
Types of unemployment
| Type | Meaning | Example |
|---|---|---|
| Disguised | More people working than needed; marginal productivity is zero | Family farms |
| Seasonal | Work only in certain seasons | Agriculture, tourism |
| Structural | Mismatch between skills and jobs | Workers displaced by automation |
| Frictional | Short gap while changing jobs | Job seekers between jobs |
| Cyclical | Due to economic slowdowns | Recession layoffs |
| Educated unemployment | Graduates unable to find suitable jobs | – |
The four Labour Codes
| Code | Replaced |
|---|---|
| Code on Wages, 2019 | 4 laws (Minimum Wages, Payment of Wages, Payment of Bonus, Equal Remuneration) |
| Industrial Relations Code, 2020 | 3 laws (Trade Unions, Industrial Disputes, Standing Orders) |
| Code on Social Security, 2020 | 9 laws (EPF, ESI, Maternity Benefit, gratuity, etc.); covers gig and platform workers |
| Occupational Safety, Health and Working Conditions Code, 2020 | 13 laws |
The 4 codes replaced 29 central labour laws and were brought into force in November 2025 (approx).
Employment-linked schemes: PM Viksit Bharat Rozgar Yojana (2025), VB-G RAM G (125 days of rural work from July 2026), e-Shram (unorganised workers’ database), PM Internship Scheme. See our government schemes list.
Measuring poverty
Official poverty lines (history)
| Committee | Year | Key point | Poverty ratio |
|---|---|---|---|
| Y.K. Alagh task force | 1979 | Calorie-based: 2,400 (rural) and 2,100 (urban) calories | – |
| Lakdawala | 1993 | State-specific lines using CPI-AL and CPI-IW | 36% (1993-94) |
| Suresh Tendulkar | 2009 | Added health and education spending; common basket | 21.9% (2011-12) |
| C. Rangarajan | 2014 | Higher lines (₹32/day rural, ₹47/day urban in 2011-12) | 29.5% (2011-12) |
No new official poverty line has been fixed after Rangarajan; the government relies on MPI and consumption surveys.
Multidimensional Poverty Index (MPI)
| Point | Detail |
|---|---|
| Global MPI | UNDP and OPHI (Oxford); 3 dimensions: health, education, standard of living (10 indicators) |
| National MPI | NITI Aayog; 12 indicators (adds maternal health and bank account) |
| Latest NITI finding | Multidimensional poverty fell from 29.17% (2013-14) to 11.28% (2022-23); about 24.82 crore people escaped poverty |
World Bank estimates
- Extreme poverty in India fell from about 27% (2011-12) to about 5.3% (2022-23), using the new $3 a day (2021 PPP) line (as reported in 2025).
- India’s consumption Gini index was about 25.5 (2022-23), making it one of the more equal countries by consumption (as reported).
Household Consumption Expenditure Survey (HCES) 2023-24
| Indicator | Rural | Urban |
|---|---|---|
| Average monthly per capita consumption (MPCE) | about ₹4,122 | about ₹6,996 |
| Share of food in spending | below 50% | about 40% |
The urban–rural gap in MPCE narrowed to about 70% (approx).
Exam-ready one-liners
- PLFS started in 2017; monthly estimates since January 2025 (CWS).
- Unemployment rate in September 2026 (CWS, 15+): 5.0%; rural 4.2%, urban 6.9%.
- Female LFPR in September 2026: 34.6%.
- Disguised unemployment means zero marginal productivity.
- Four Labour Codes replaced 29 central labour laws.
- Tendulkar poverty ratio (2011-12): 21.9%; Rangarajan: 29.5%.
- NITI Aayog: MPI poverty fell from 29.17% (2013-14) to 11.28% (2022-23).
- Global MPI is published by UNDP and OPHI.
Related reading
Quiz: test yourself
Data from MoSPI, NITI Aayog and World Bank as reported. Figures are revised; check mospi.gov.in and niti.gov.in.