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Resource centre on India's rural distress
 
 

Making Sense of India’s Measures of Unemployment -Rahul Menon

-TheIndiaForum.in

The co-existence of seasonal and regular employment has posed a challenge over the decades for accurately measuring unemployment in India. An explainer and a discussion in the light of the puzzling results of the 2019-20 Periodic Labour Force Survey.

The Periodic Labour Force Survey (PLFS) of 2019–20 has revealed a significant fall in in the unemployment rate, to 4.8% from 6.1% in 2017–18, according to what is called the Usual Status. This is puzzling for two reasons. First, economic growth had been falling steadily even before the pandemic. Second, the survey covered the period corresponding to the first lockdown in March 2020. That unemployment declined when the Indian economy effectively seized up is difficult to accept, especially when data from other sources — such as the Centre for Monitoring the Indian Economy (CMIE) — indicates otherwise.

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