Unemployment data in India – What, why and how?

By admin March 22, 2019 10:20

Unemployment data in India There are media reports that for the first time since 1993-94, the actual size of India’s maleworkforce, or men who are working, has shrunk. Let’s find out the basics.

Unemployment occurs when a person who is actively searching for the work is unable to find work. He is capable of doing work. People who are either physically unfit for work or not willing to work are not called unemployed. The common measure of unemployment is unemployment rate. The unemployment rate is defined as a number of unemployed people divided by the number of people in the labour force.

Labour Force:

Persons who are either working or available for work (or unemployed) during the reference period together constitute the labour force.

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Unemployment rate is the percent of the labor force that is without work. Unemployment rate = (Unemployed Workers / Total labor force) X 100 Earlier, the NSSO (National Sample Survey Office) was conducting Unemployment Surveys as part of its National Sample Surveys. From 2017, NSSO launched a a nationwide Labour Force Survey called Periodic Labour Force Survey (PLFS). It generates accurate indicators of labour market for every quarter. It also prepares annual estimates of different labour force indicators both in rural and urban areas. While the NSSO publishes employment rates in percentage — and not actual workforce figures— its data sets include details of populations, sex ratio, labour force participation rates,employment-to-population ratio etc. The National Sample Survey Organization (NSSO) has three different estimates of unemployment. They are based on different approaches which classify an individual’s activity status. These approaches are:

  • Usual status approach with a reference period of 365 days preceding the date of survey
  • Current weekly status approach with a reference period of 7 days preceding the date of survey
  • Current daily status with each day of the 7 days preceding date of survey as the reference period.

Activity Status: When an individual is found during the reference period with respect to his participation in an activity. The NSSO defines following Activity Status

i) Working

ii) Seeking for work i.e. & Unemployed’s

iii) Neither seeking nor available for work.

Labour force = both employed and unemployed. A shrinking workforce suggests an increase in the number of unemployed, and also points to fewer new job opportunities.

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By admin March 22, 2019 10:20