Employment, Unemployment

1. Employment, Unemployment &
Labour Force Participation

4. Sources of Employment Data for India
International Source:
ILOSTAT – International Labour Organisation (Free) - https://ilostat.ilo.org/data/
Frequency: Annual & Quarterly
Domestic
 CMIE – Centre for Monitoring of Indian Economy (Paid & Private)
https://unemploymentinindia.cmie.com/
Frequency: Monthly
 PLFS – Periodic Labour Force Survey (Free & Govt.) After 2017-18
https://mospi.gov.in/web/mospi/download-tables-data
Frequency: Quarterly & Annual
 NSSO – National Sample Survey Organisation (Govt.) 1972-73 to 2011-12
http://microdata.gov.in/nada43/index.php/catalog/EUE

5. Key Concepts
Economic Activity
Activity Status
Labour Force
Employed
Unemployed
Labour Force
Greater Labour Force
Out of Labour Force
Labour Force Participation Rate
Worker Population Ratio
Unemployment Rate
Greater Unemployment Rate

6. Economic Activity
Any activity that results in production of goods and services that adds value to national
product is considered as an economic activity.
Economic Activity
Market Activity Non-Market Activity
Market activities are those that involve remuneration to those who perform it, i.e., activity
performed for pay or profit. Such activities include production of all goods and services for market
including those of government services, etc.
Non-market activities are those involving the production of primary commodities for own
consumption and own account production of fixed assets.

7. In India, ‘economic activity’ will include:
 All market activities i.e., the activities performed for pay or profit which result in production of
goods and services for exchange.
AND
Non-market Activities including
 All the activities relating to the primary sector (industry division 1 to 9 of NIC 2008) which
result in production of primary goods for own consumption.
 The activities relating to the own account production of fixed assets. It includes construction of
own houses, roads, wells, etc., and of machinery, tools, etc., for household enterprise and also
construction of any private or community facilities free of charge.
Economic Activity

8. Activity Status
It is the activity situation relating to participation in economic and / or economic activities in
which a person is found engaged during a reference period.
According to this, a person will be in one or a combination of the following three broad
activity statuses during a reference period:
(i) Working or being engaged in economic activity (work),
(ii) Being not engaged in economic activity (work) and either making tangible efforts to seek
'work' or being available for 'work' if the 'work' is available and
(iii) Being not engaged in any economic activity (work) and also not available for 'work'.

9. Activity Status: Reference Period
The activity status of a person is determined on the basis of the activities pursued by the person during
the specified reference period. This is used to evaluate if the person can be categorized as employed or
unemployed.
 Usual Status (US): When the activity status is determined on the basis of the reference period of
the last 365 days preceding the date of survey, it is known as the usual activity status of the
person.
 Usual Principal Status and Subsidiary Status (PS+SS): If a person has engaged in any economic
activity for a period of 30 days or more during the preceding 365 days a person is considered as
employed under this approach.
 Current Weekly Status (CWS): The activity status determined on the basis of a reference period
of last 7 days preceding the date of the survey is known as the current weekly status (CWS) of
the person.
 CMIE considers the day of the survey or on the day preceding the survey to check activity status
(Current Daily Status).

10. Activity Status and Status of Employment
Activity Status:
(i) Working or being engaged in economic activity (work),
(ii) Being not engaged in economic activity (work) and either making tangible efforts to seek 'work' or being
available for 'work' if the 'work' is available and
(iii) Being not engaged in any economic activity (work) and also not available for 'work'.
 Activity statuses (i) & (ii) are associated with 'being in labour force’.
 Activity status (iii) is associated with 'not being in the labour force’.
 Within the labour force,
 Activity Status (i) is associated with 'employment' and
 activity status (ii) with ‘unemployment’.

11. Employed
a) worked in household enterprise (self-employed) as an own-account worker, employer or helper
b) worked as regular wage/ salaried employee.
c) worked as casual wage labour in public works including MGNREG, SGRY, NFFWP, etc.
d) worked as casual wage labour in other types of works.
e) did not work due to sickness though there was work in household enterprise (self employed).
f) did not work due to other reasons though there was work in household enterprise (self employed).
g) did not work due to sickness but had regular wage/ salaried employment.
h) did not work due to other reasons but had regular wage/ salaried employment.

12. Unemployed
Persons, who, during the reference period,
 Had not worked owing to lack of work, but
EITHER
 Sought work through employment exchanges, intermediaries, friends or relatives or by making
applications to prospective employers OR
 Expressed their willingness or availability for work under the prevailing condition of work and
remuneration

13. Labour Force and Greater Labour Force (CMIE)
Labour force consists of persons who are of 15 years of age or more and are either of the following
two categories:
 are employed
 are unemployed and are willing to work and are actively looking for a job
Greater labour force consists of persons who are of 15 years of age or more and are either of the
following three categories:
 are employed
 are unemployed and are willing to work and are actively looking for a job
 are unemployed and are willing to work and are not actively looking for a job

14. Labour Force and Out of Labour Force (PLFS)
 Labour force: Persons who are either employed or 'seeking or available for work' (or
unemployed) during the reference period together constitute the labour force.
 Out of labour force: Persons who are neither 'working' and at the same time nor 'seeking
or available for work' for various reasons during the reference period are considered to
be 'out of labour force’. The persons under this category are:
 students,
 those engaged in domestic duties,
 rentiers,
 pensioners,
 recipients of remittances,
 those living on alms,
 Infirm or disabled persons,
 too young or too old persons, prostitutes,
 casual labourers not working due to sickness.

15. Rates Defined
 Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in
labour force in the population.
 Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in
the population.
 Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among
the persons in the labour force.
 Greater Unemployment Rate (GUER): GUER is the sum of the unemployed who are willing
to work and are actively looking for a job and the unemployed who are willing to work and
are not actively looking for a job, expressed as a per cent of the greater labour force.
Results from PLFS Data : Annual (July 2020 – June 2021) Quarterly (April – June 2022)