Revision summary
India measures unemployment on more than one reference period because work is often casual. Usual status (ps and ps+ss) uses the last year and usually gives the lowest rate. Current weekly status uses the last seven days. Current daily status counts person-days and captures underemployment. PLFS is the present NSO survey that carries these NSSO concepts.
Model answer
Introduction
Unemployment in India is not one number. The National Sample Survey Office, now through the Periodic Labour Force Survey, measures it on different reference periods because much work is casual and seasonal.
Body
Usual status
- Usual principal status asks what a person did for the major part of the last 365 days.
- Usual principal-plus-subsidiary status (UPSS) also counts a shorter secondary activity, so the unemployment rate is usually the lowest of the three.
- This long-period measure is useful for structural unemployment, but it can hide short spells without work.
Current weekly and daily status
- Current weekly status (CWS) looks at the last seven days. A person who worked even one hour in that week is employed.
- Current daily status (CDS) counts person-days in the week. It captures underemployment and is usually the highest unemployment rate.
- PLFS, run by the National Statistical Office, is the present vehicle for these concepts in both usual status and CWS for rural and urban India.
The concept is therefore a set of clocks, not a single clock. Policy must say which clock it is using.
Flow diagram
Conclusion
NSSO unemployment is usual status for the year, CWS for the week, and CDS for person-days. PLFS continues those clocks. The daily measure shows more unused labour than the yearly measure.
Quick related
Students also ask
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Why do three rates differ?
They use different clocks. A person with some work in the year may still have idle days in the week.
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Did PLFS replace the idea of usual status?
No. PLFS still publishes usual status and CWS. It is a new survey series, not a new definition of work.
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