Understanding Employment Data

Why CMIE and PLFS show vastly different numbers.

1. Unpaid Family Labor

The PLFS includes unpaid family helpers as employed. This is the primary reason female labor force participation rates appear to be spiking in rural areas during times of economic distress.

2. Formal vs Informal

EPFO payroll data is an indicator of formalization, not necessarily new job creation. A firm moving from the informal to the formal sector will show up as "new jobs" in EPFO data.