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Labour Force Participation Rate

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The Labour Force Participation Rate (LFPR), obtained by dividing the number of persons in the labour force by total population, is an important parameter in employment projections and formulation of employment strategies.

NSSO defines Labour force participation rate (LFPR) as the number of persons/person days in labour force per thousand persons/person days.

LFPR = No. of persons/person days employed + No. of persons/person days unemployed x 1000
Total Population

The crucial issue, however, is the basis, or the decision rule, on which a person is classified as belonging to the labour force. There are four different concepts used in India in this regard. These are*:

a) Usual Principal Status (UPS)
b) Usual Principal and Subsidiary Status (UPSS)
c) Current Weekly Status (CWS), and
d) Current Daily Status (CDS).



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