Looking beyond the unemployment rate

Regardless of the approach we use, there is no denying the fact that unemployment rates in India are high

Radhicka Kapoor
unemployment, jobs

The activity status of a person is determined on the basis of the reference period of one week

The much-awaited results of India’s first Periodic Labour Force Survey (PLFS) have finally been released. The most widely cited statistic from this report is the unemployment rate of 6.1 per cent. This rate is based on the usual status approach which relates to the activity status of a person during the reference period of 365 days preceding the date of survey. Significantly, the unemployment rate based on the current weekly status (CWS), determined on the basis of the activity status for a person during a reference period of seven days preceding the date of survey, is higher at 8.9 per cent. Having a longer reference period, the usual status measures report a larger number of employed compared to the CWS measures. As India moves towards reporting labour force indicators at an annual and quarterly frequency, it is more appropriate to anchor the policy discourse in the CWS measure. Being inherently smoother, the usual status measures are unlikely to vary much over short time inter
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jun 14 2019 | 1:33 AM IST

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