Introduction

Labour Force statistics are pivotal to manpower planning, human resource development and, economic growth.  Pakistan Bureau of Statistics has been conducting Labour Force Surveys (LFS) since 1963. The Survey data is extensively used by the government, researchers and other users at large.

The Survey, along with the quantification of core variables, also estimates important attributes of literacy, migration, technical/vocational training, disability and occupational safety, etc. The estimates are profiled according to latest classifications viz Pakistan Standard Industrial Classification (PSIC 2010) based on International Standard Industrial Classification (ISIC rev-4) and Pakistan Standard Classification of Occupation (PSCO- 2015) in line with International Standard Classification of occupation (ISCO-2008).

Objectives:

The major aim of the survey is to collect a set of comprehensive statistics on the various dimensions of country’s civilian labour force as a means to pave the way for skill development, planning, employment generation, assessing the role and importance of the informal sector and, sizing up the volume, characteristics and contours of employment. The broad objectives of the survey are as follows:

• Socio-demographic characteristics: age, sex, marital status, education level, technical/vocational training, current enrolment, migration, disability etc.
• Labour force trends: total labour force, employed, unemployed, unemployment rate, underemployment etc.
• Employment status: whether individuals are employers, own account workers, contributing family workers, paid employees, regular or casual employees etc.
• Employment in formal and informal sectors, wages of paid employees, annual income of self-employed and payment mode
• Hours worked, working environment, safety and treatment, recovery time etc.

LFS & SDG’s

UN has adopted new development plan called Sustainable Development Goals (SDGs). Under SDGs there are 17 goals, 169 targets and 232 indicators. It is designed in such a way that they are addressing the individuals rather than the households so that benefits can reach up to individual level. Labour Force Survey covers 11-SDGs indicators.

Detail of SDGs Indicators

1.  Indicator 4.3.1 Participation Rate of Youth and Adults in Formal and Informal Education and Training in the previous 12 months by sex
2.  Indicator 5.5.2 Proportion of women in managerial positions
3.  Indicator 8.3.1: Proportion of informal employment in total employment, by sector and sex
4.  Indicator 8.5.1: Average hourly earnings of employees, by sex, age, occupation and persons with disabilities
5.  Indicator 8.5.2: Unemployment rate, by sex, age and persons with disabilities
6.  Indicator 8.6.1: Proportion of youth (aged 15-24 years) not in education, employment or training
7.  Indicator 8.8.1: Non-fatal occupational injuries per 100’000 workers, by sex and migrant status
8.  Indicator 8.7.1 Proportion and number of children aged 5–17 years engaged in child labour by sex and age (Partially covered)
9.  Indicator 8.9.2 Number of jobs in tourism industries as a proportion of total jobs and growth rate of jobs, by sex (Percentage)
10.  Indicator 9.2.2: Manufacturing employment as a proportion of total employment
11.  Indicator 9.5.2: Researchers per million inhabitants

1.1 Background

Pakistan Bureau of Statistics has been carrying out Labour Force Survey (LFS) since 1963. The questionnaire and methodology of the survey have been undergoing pertinent improvements through the forum of “Panel on Labour Statistics” comprising all important stakeholders to keep current with best practices.  The questionnaire was revised in 1990 to include probing questions on marginal economic activities, likely to be carried out mostly by women and tend to go unrecorded with conventional questions. The questionnaire was further improved in 1995 to reckon with the size and composition of migration and informal sector. The scope of the survey was extended in 2001-02 to take the stock of occupational safety and health of employed persons. The questionnaire was further articulated for undertaking 1st quarterly LFS 2005-06. This practice has since been continuing. In the Labour Force Survey (LFS) 2020-21, a module on functional limitation/disability was included, and labour underutilization equations were added. In 2023, the 21st International Conference of Labour Statisticians (ICLS) was held in Geneva. In light of the ICLS recommendations, the survey questionnaire has been revised. New questions have been included on informality, domestic and care work, freedom of association, own-use production of goods, and gig workers/digital platform workers.

This report presents annual results of LFS 2020-21. The survey’s sample size comprises of 99,904 households divided up into four distinct quarterly representatives at National level with urban rural breakdown.

1.2 Objectives

The major aim of the survey is to collect a set of comprehensive statistics on the various dimensions of country’s civilian labour force as a means to pave the way for skill development, planning, employment generation, assessing the role and importance of the informal sector and, sizing up the volume, characteristics and contours of employment. The broad objectives of the survey are as follows:

• To collect data on the socio-demographic characteristics of the total population i.e. age, sex, marital status, level of education, current enrolment and migration etc;
• To acquire current information on the dimensions of national labour force; i.e. number of persons employed, unemployed, and underemployed or out of labour market;
• To gather descriptive facts on the engagement in major occupational trades and the nature of work undertaken by the institutions/organizations;
• To profile statistics on employment status of the individuals, i.e. whether they are employers, own account workers, contributing family workers or paid employees (regular/casual);
• To classify non-agricultural enterprises employing household member(s) as formal and informal;
• To quantify the hours worked at main/subsidiary occupations;
• To provide data on wages and mode of payment for paid employees;
• To make an assessment of occupational health and safety of employed persons by causes, type of treatment, conditions that caused the accident/injury and time of recovery; and
• To collect data on the characteristics of unemployed persons i.e. age, sex, level of education, previous experience if any, occupation, industry, employment status related to previous job, waiting time invested in the quest for work, their availability for work and expectations for future employment.

1.3 Field Operation

PBS is the national statistical organization responsible for collection, processing, compilation and dissemination of statistics. It has 34 Regional/Field Offices located all over Pakistan. These offices are equipped and manned with regular and trained field staff for the collection of data from the field.

In order to evolve dynamics of field enumeration in line with the survey’s objectives, training is imparted to the concerned staff on interviewing techniques and other procedure to be used in the enumeration. For quality control, supervisors from Regional/Field Offices and headquarter, make frequent field visits to keep the collection process on track.

1.4 Reference Period

Reference period is past week i.e. seven days before the date of enumeration.

1.5 Editing/Coding and Data Processing

Consistency checks are applied to the data collection application. After enumeration, enumerators sync data to the server/database. At headquarters, data cleaning processes commence, involving data cleaning queries and coding/editing. Following data cleaning, data are processed, and estimates of key indicators are generated.

1.6 Sampling Plan

Universe: The universe for Labour Force Survey consists of all urban and rural areas of the four provinces of Pakistan and Islamabad excluding military restricted areas. The population of excluded areas constitutes about 1% of the total population.

1.7 Sample Design

A stratified two-stage sample design is adopted for the survey.

1.8 Sampling Frame

Pakistan Bureau of Statistics (PBS) has developed its own sampling frame for both urban and rural domains. Each city/town is divided into enumeration blocks. Each enumeration block is comprised of 200 to 250 households on the average with well-defined boundaries and maps. The frame used in this survey was the most recent frame which is updated through Population and Housing Census 2017.

1.9 Stratification Plan

1.9.1 Rural Domain: Each administrative district in the Punjab, Sindh and Khyber Pakhtunkhawa (KP) is considered an independent stratum whereas in Balochistan, each administrative division constitutes a stratum.

1.9.2 Urban Domain: All administrative divisions in the four provinces, constitutes separate stratum.

1.9.3 Selection of primary sampling units (PSUs)
Enumeration blocks in both Urban and Rural domains are taken as Primary Sampling Units (PSUs). Sample PSUs from each ultimate stratum/sub-stratum are selected with probability proportional to size (PPS) method of sampling scheme. In both Urban and Rural domains, the number of households in an enumeration blocks considered as measure of size.

1.9.4 Selection of secondary sampling units (SSUs)
The listed households of sample PSUs are taken as Secondary Sampling Units (SSUs). A specified number of households i.e. 12 from each urban sample PSU and 16 from rural sample PSU are selected with equal probability using systematic sampling technique with a random start.

1.10 Sample Size and Its Allocation

A sample of 99,904 households is considered appropriate to provide reliable estimates of key labour force characteristics at National/Provincial level with Urban and Rural breakup. The entire sample of households (SSUs) is drawn from 6808 Primary Sampling Units (PSUs) out of which 4552 are rural and 2256 are urban.  

1.11 Method of Data Collection

Data are collected by direct interview method.  Generally, the head of household is chosen to provide information about all members of the household. In case of his/her non-availability at the time of interview, some other informed member of the household down the line is interviewed. The total sample for the year is evenly distributed for enumeration on quarterly basis to offset the effect of seasonal variations. The information collected however relates to the week preceding the date of enumeration.

1.12 Coverage

The survey covers all urban and rural areas of the four provinces of Pakistan and Islamabad except military restricted areas. The population of excluded areas constitutes about 1% of the total population.

All sample enumeration blocks in urban areas and mouzas/dehs/villages in rural areas were enumerated except 3462 households which were not covered due to non-contact or refusal cases in urban and rural areas. However, the number of sample households (96,442) enumerated as compared to total sample size (99,904) is high as response rate is (96.53%).