2023 · GS Paper 3 · Q11 · 15 marks
Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.
In short
India computes unemployment through the NSO's Periodic Labour Force Survey using usual, weekly and daily status, but its one-hour and 30-day work tests hide the underemployment and skill mismatch that make Indian unemployment structural. Adopting the ILO's 19th ICLS (2013) underutilisation measures would expose the real job deficit.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 286 words
Survey architecture
The Periodic Labour Force Survey of the National Statistical Office replaced the quinquennial NSSO rounds in 2017 and, since 2025, gives monthly estimates.
Activity status approaches
Usual Status covers 365 days, Current Weekly Status counts one hour of work in seven days as employment, and Current Daily Status uses half-days; EPFO payroll and the Labour Bureau's Quarterly Employment Survey supplement it.
Low work threshold
The one-hour and 30-day tests count the underemployed as employed, hiding disguised unemployment in farms that hold about 46% of workers.
Skill mismatch unseen
The survey asks whether people work, not whether the job fits their education.
Women and divergence
Unpaid helpers count as self-employed, care work is ignored, and CMIE often reports far higher rates.
Measure underutilisation
Publish ILO 19th ICLS (2013) measures of underemployment and the potential labour force.
Skill-match and admin data
Add a skill-match module and triangulate EPFO, ESIC and e-Shram records, with the Time Use Survey for women's work.
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This chapter in the exam
Employment3 questions
Asked in 3 of 14 sittings since 2013
- 2015The nature of economic growth in India in recent times is often described as jobless growth. Do you agree with this view? Give arguments in favour of your answer.
- 2014"While we flaunt India's demographic dividend, we ignore the dropping rates of employability." What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.
Question from the official UPSC Civil Services (Main) Examination 2023 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.