Unemployment

Unemployment

Subject :Economy

Context: Unemployment rate in the country has zoomed to a high of 8.3 per cent in December, the highest in 2022, according to data from the Centre for Monitoring Indian Economy (CMIE).

• The unemployment rate in November was at 8 per cent, while in September it was the lowest at 6.43 per cent and was at the second highest level during the year at 8.28 per cent in August, the CMIE data stated.
• While the urban unemployment rate was at 10 per cent during the last month of 2022, rural joblessness stood at 7.5 per cent during December
• Among the States, unemployment continued to be the highest in Haryana at 37.4 per cent in December, followed by Rajasthan at 28.5 per cent, Delhi 20.8 per cent, Bihar 19.1 per cent and Jharkhand 18 per cent.

Periodic Labour Force Survey-

It is India’s first computer-based survey launched by the NSO in 2017. It essentially maps the state of employment in the country. In doing so, it collects data on several variables such as the level of unemployment, the types of employment and their respective shares, the wages earned from different types of jobs, the number of hours worked etc. Before PLFS, the National Sample Survey Office (NSSO)- previous name of NSO used to bring the data related to employment and unemployment based on its quinquennial (every 5 year) household socio-economic survey programme.

The reports are released on a quarterly as well as annual basis.  The quarterly reports cover only urban areas whereas the annual report covers both urban and rural areas.  

• It estimates the key employment and unemployment indicators (viz. WPR, LFPR, UR) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS).
• To estimate employment and unemployment indicators in both usual status and CWS in both rural and urban areas annually.

Various indicators

•  Labour Force Participation Rate (LFPR)-the percentage of persons in labour force (working or seeking or available for work) in the population of all age
• Unemployment rate -refers to the percentage of unemployed persons in the labour force. Labour force includes persons who are either employed or unemployed but seeking work.
• Worker Population Ratio (WPR)-the percentage of employed persons in the population.

Activity Status

• Usual Status: The activity status determined on the basis of the reference period of the last 365 days preceding the date of survey, it is known as the usual activity status of the person.
• Current Weekly Status (CWS): The activity status determined on the basis of a reference period of the last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person).