ISLAMABAD: All independent economists termed Labour Force Survey (LFS) the most “flawed and controversial.” The survey found in 2020-21 that the volume of employed persons increased from 3.22 million from 64.03 million in 2018-19 to 67.25 million in 2020-21.
All economists agreed on one point that the sample of LFS was the poorest in terms of quality of all surveys, collection of pricing data, and calculation of national accounts done by the PBS so there is a need of huge improvement. It’s irony that the PTI was making tall claims about creation of more jobs on the basis of Labour Force Survey, which was always considered as most controversial exercise.
They argued that the volume of employees’ increased mainly in ‘informal sector’ in post Covid-19 scenario and quality of employment did not achieve any improvement at all. First time in the country’s history, Pakistan Bureau of Statistics (PBS) undertook Labour Force Survey on district wise basis with sample size of 100,000 in all the four provinces.
The labour force increased from 68.75 million in 2018-19 to 71.76 million in 2020-21. This shows increase of 1.51 million per annum. The volume of employed persons increased (3.22 million) from 64.03 million in 2018-19 to 67.25 million in 2020-21. This shows 1.61 million people are added to labour force per annum. The volume of unemployed person decreased by 0.20 million from 4.71 million in 2018-19 to 4.51 million in 2020-21.
Unemployment rate went down from (6.9 percent) in 2018-19 to (6.3 percent) in the LFS 2020-21. Decrease is observed both in case of males (5.9 percent, 5.5 percent) and females (10.0 percent, 8.9 percent); however, decline in the unemployment rate of females is more pronounced than that of males during the period. Area-wise disaggregated figures indicate that unemployment rate went down both in urban (7.9 percent, 7.3 percent) and in rural areas (6.4 percent, 5.8 percent). Comparative figures suggested significant decrease in rural males (5.5 percent, 5.1 percent) and females (8.5 percent, 7.4 percent) and in urban male (6.5 percent, 6.0 percent) and urban females (17.1 percent, 16.4 percent). See Table-3.5.1 (Figure-3.5.1).
Underemployment rate went up from (1.2 percent) in 2018-19 to (1.5 percent) in 2020-21 equivalently for females (1.6 percent, 1.9 percent) and males (1.4 percent, 1.6 percent). The same scenario is obtained in rural (1.4 percent, 1.6 percent) and urban areas (0.7 percent, 1.4 percent). Underemployment rate signifies increasing latitude to make alternative option to multiple jobs in order to help handle with the cost of living. Main reason of increase of underemployment rate is prevalence of Covid-19 and smart lockdown during the survey period 2020-21.
Overall employment to population ratio is (42.1 percent), more in case of male (64.1 percent) than female (19.4 percent). The provinces make the same pattern, high for male than female. There were 36 percent employment ratio in KP, Punjab 44.2 percent, Sindh 42.1 percent and Balochistan 38.6 percent in LFS 2020-21.
The comparative surveys estimates indicated changes in the employment shares. Decrease was observed in agriculture/forestry/hunting & fishing (39.2 percent, 37.4 percent), wholesale & retail trade (14.5 percent, 14.4 percent) and other category (2.2 percent, 1.5 percent) while significant increase is noted in construction (8.0 percent, 9.5 percent) and community/social & personal services (14.9 percent, 16.0 percent), manufacturing (15.0 percent, 14.9 percent) and transport storage & communication (6.2 percent, 6.2 percent) remain stagnant during the comparative periods.
Skilled agricultural, forestry & fishery workers constitute the largest group (33.2 percent) of the total employed in 2020-21 followed by elementary occupations (17.4 percent), service and sales workers (15.6 percent), craft & related trades workers (13.7 percent), plant/machine operators & assemblers (7.4 percent), professionals (5.0 percent), technicians & associate professionals (3.8 percent), managers (2.5 percent) and clerical support workers (1.4 percent).
Informal sector accounts for more than 70 percent of non-agricultural employment, more in rural (76.2 percent) than urban areas (68.5 percent).
On the other hand, formal sector activities are concentrated more in urban areas (31.5 percent) than in rural areas (23.8 percent). Share of females in comparison with respective share of males is more visible in both urban formal (42.1 percent) and rural formal (28.9 percent) while, share of males is more prominent in rural informal (77.0 percent) and urban informal (69.7 percent). Shares of male in formal sector goes down while share of females waxes up in the same sector. In the informal sector, employment share of male goes up while in case of females goes down during the comparative periods.
About 30.1 percent workers are reported as service and sales workers, while near one-half workers are reported craft & related trades workers (26.5 percent) or elementary occupations (21.6 percent). The remaining groups make a descending sequence of plant/machine operators & assemblers (11.9 percent), technicians & associate professionals (3.9 percent), professionals (3.3 percent), managers (2.2 percent) and skilled agricultural, forestry & fisheries (0.1 percent). In craft & related trade activities, females’ workers (56.2 percent) more than twice of males’ workers (23.0 percent). In the category of professionals, share of females (9.8 percent) is also three times more than males share (2.5 percent). In the rest of the occupational groups’ share of males are higher than females.