Explain the methods of measuring unemployment in India.

Question

Ghissu Editorial · Accepted Answer

India measures unemployment through NSSO and PLFS surveys using the Dantwala Committee's (1968) approaches: usual status, current weekly status, current daily status and labour time disposition. Estimates range from about 2.2% (usual status) to over 7% (current daily status), as underemployment and informality blur open unemployment.

**Introduction**

India’s unemployment measurement must address underemployment, informality, and socio-demographic diversity to inform effective policy. Accurate data is vital amid economic slowdowns and demographic shifts to design targeted employment interventions.

**Institutional Framework**

2. **Dantwala Committee Methods**: The 1968 committee’s four approaches, usual status, current weekly/daily status, labour time disposition, capture long-term and seasonal employment variations, providing nuanced labour utilisation insights.

3. **Labour Bureau and Administrative Data**: Labour Bureau’s sectoral reports and efforts to integrate administrative records, including searchable RTI databases in Maharashtra, enhance data transparency, benefiting ==Andhra Pradesh’s welfare-scheme DBT template==. This integration aids timely tracking of employment shifts in industrial corridors like ==Visakhapatnam==.

**Challenges**

4. **Underemployment and Variability**: High informal sector prevalence obscures unemployment; estimates vary from 2.2% (usual status) to over 7% (current daily status), reflecting definitional and reference period differences.

5. **Social Patterns**: Unemployment duration and job-finding rates⟦1⟧ show caste, age, gender, and education gaps⟦2⟧, with youth and women disadvantaged, seen in urban ==Andhra Pradesh==. These disparities affect labour market inclusion and economic equity.

6. **Economic Shocks**: COVID-19 and slowdowns increased unemployment, stressing the need for granular data, especially in drought-hit ==Rayalaseema==, to enable responsive policy measures.

**Way Forward**

7. **Enhanced Surveys and Data Integration**: Increasing survey frequency and linking employment data with administrative records can improve accuracy and reduce reliance on self-reporting, enabling better policy targeting.

8. **Technology and E-Governance**: Leveraging digital infrastructure and improving India’s UN E-Government ranking (97th in 2024) can aid real-time employment monitoring in states like ==Andhra Pradesh==, facilitating data-driven governance.

**Conclusion**

A multifaceted, data-integrated approach addressing underemployment and social disparities is essential for inclusive growth and decent work, advancing the vision of Viksit Bharat 2047.

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