You can listen to this article as a podcast on Spotify. Follow 'The Paradigm Daily' on Spotify so that you do not miss out on new episodes!
The National Statistical Office (NSO) launched the Periodic Labour Force Survey, India's first computer-based survey, in 2017. There are two primary purposes of the PLFS: to estimate employment and unemployment.
The unemployment rate for PLFS is calculated using two methods: the Usual Status and Current method and the Weekly Status method. The normal status (ps+ss) approach has a one-year reference period, while the current weekly status approach has a one-week reference period.
- Current Weekly Status (CWS)
According to Current Weekly Status, unemployment estimates are based on an average of seven consecutive days during the period of the survey.
A person's current weekly status is determined by whether they worked at least one hour on any day in the seven days leading up to the survey date. In this way, the number of workers measured by current weekly status (CWS) is representative of the overall level of employment over an entire week.
- Usual Status
The Labour Force is estimated using the typical status approach during a one-year timeframe. It is calculated by adding two categories together: usual principal status (ps) and subsidiary status (ss).
The normal status (ps+ss) assessment of the labor force contains
- Those who were either employed or available to work largely during the twelve months prior to the take-in date
- Those remaining in the population who have worked for at least 30 days in the 365 days prior to the date of the survey.
The International Labour Organization (ILO) definition is used by the Office of National Statistics. This is the internationally accepted definition of unemployment. It is suggested by the International Labour Organization, a United Nations institution, and is utilized by the European Union's Statistical Office, the Organization for Economic Cooperation and Development (OECD), and other countries.
A person aged 16 or older belongs to one of three categories based on ILO rules: employed, unemployed, or economically inactive. Working is defined as doing at least one paid hour of work per week or being absent from the workplace for a period of time. A person that is enrolled in a government-sponsored training course is also counted as employed, as is someone who works unpaid for their family's business. According to ILO rules, everyone who is unemployed, available for employment, or looking for work is considered unemployed.
Measurement of unemployment
Using the International Labour Organization (ILO) criteria, the Labour Force Survey (LFS) monitors unemployment. A Labour Force Survey is mandated by law for every EU country. Private-household residents are surveyed as part of the LFS.
The poll asks respondents questions about their personal circumstances and employee behavior. According to ILO definitions, each respondent is classed as employed, unemployed, or economically inactive based on the answers to these questions.
The outcomes of the interviews are processed once they have taken place. The responses can be used to derive results reflecting the complete household population using official mid-year population estimates of the total number of individuals residing in each location by age group and gender. The final published results are then seasonally adjusted from these estimates.
At the end of November 22 last year, India's unemployment rate was 7.8% with the labor participation rate at 39.3%. This resulted in a dramatic drop in employment to 36.24%.
One of the most important national household surveys done by governments is labor force surveys. It is critical to determine and understand the country's employment and unemployment rates.
This article has been written by Omer Khan for The Paradigm
See you next time...
Join us on 15th August in Twitter Spaces for The Paradigm's FreedomCon, India's largest socio-political convention, focusing on the future of the country through a dialogue about the present and projections about the future. With discussions with India's experts on the country's socio-political, business, financial, and economic present, and future, The Paradigm's FreedomCon 2021 is all set to assist the citizens in understanding what lies ahead for us.
Click here to register for the event.