The Indian government's statistics ministry has established a high-powered experts committee to strengthen labour market data, according to a report by Business-Today. The 22-member panel, formed on June 9, will address key issues such as informal sector employment, moonlighting, seasonal migration, and the growing gig and platform economy.
Committee Structure and Mandate
The committee is chaired by Alakh Sharma, professor at the Institute for Human Development (IHD). Its term is set for two years, and it includes participation from multiple government bodies: Niti Aayog, the labour ministry, the skill ministry, and the education ministry. The panel's terms of reference specify that it will "examine the concepts, definitions, classifications, sampling and measurement frameworks adopted in labour statistics, particularly in the context of the Periodic Labour Force Survey (PLFS)."
The committee shall, inter alia, examine the concepts, definitions, classifications, sampling and measurement frameworks adopted in labour statistics, particularly in the context of the Periodic Labour Force Survey (PLFS).
Focus Areas and Key Issues
The committee will review classification frameworks for industry, occupation, status of employment, and enterprise characteristics. It will also examine issues related to developing demand-side labour market indicators, including:
- Measurement of labour demand
- Job vacancies
- Labour turnover
- Occupational demand
- Skill requirements
- Job–skill mismatch
To generate high-frequency demand-side indicators, the panel may evaluate the use of administrative and alternative data sources. These include the National Career Service (NCS), MCA databases, job portals, enterprise/HR administrative datasets, and other digital labour market information systems, according to the ministry's order.
The committee will also consider international definitions from the 19th International Conference of Labour Statisticians regarding forms of work, informal employment, own-use production work, and unpaid trainee work. It will suggest adaptations suitable for the Indian context.
Implications for Labour Market Data
For executives and investors tracking India's labour market, this panel's work could lead to more accurate and timely data on employment and workforce participation. Currently, the Periodic Labour Force Survey (PLFS) is the primary source, but it may undercount informal and gig workers. The inclusion of alternative data sources could provide a more comprehensive picture of labour demand and supply.
| Focus Area | Key Aspects |
|---|---|
| Informal sector employment | Measurement gaps, classification |
| Moonlighting | Multiple job holdings, data capturing |
| Seasonal migration | Tracking temporary workers |
| Gig and platform work | Defining and counting platform workers |
| Demand-side indicators | Job vacancies, turnover, skill gaps |
| Alternative data | NCS, MCA, job portal, HR datasets |
Next steps: The committee has a two-year term to submit its recommendations. Its findings could influence how the government, businesses, and analysts assess India's employment trends, particularly in the rapidly evolving gig and platform economy. For corporate strategists, improved labour data may help in workforce planning, investment decisions, and risk assessment related to labour availability and skill shortages.
Sources:
