Skip to content
  • Facebook
  • X
  • Linkedin
  • WhatsApp
  • YouTube
  • Associate Journalism
  • About Us
  • Privacy Policy
  • 033-46046046
  • editor@artifex.news
Artifex.News

Artifex.News

Stay Connected. Stay Informed.

  • Breaking News
  • World
  • Nation
  • Sports
  • Business
  • Science
  • Entertainment
  • Lifestyle
  • Toggle search form
  • Access Denied
    Access Denied Nation
  • Judge delays Donald Trump’s sentencing in hush money case until after November election
    Judge delays Donald Trump’s sentencing in hush money case until after November election World
  • How Jhansi Nurse Saved Over Dozen Babies
    How Jhansi Nurse Saved Over Dozen Babies Nation
  • More Than 80% Of Indians Exposed To Climate-Related Health Risks: Ex-WHO Chief Scientist
    More Than 80% Of Indians Exposed To Climate-Related Health Risks: Ex-WHO Chief Scientist World
  • How Kamala Harris’ Campaign Cost  Million
    How Kamala Harris’ Campaign Cost $12 Million World
  • Access Denied Business
  • North Corporation conducts ‘street-view videography’ to know footpath conditions; float tenders for maintenance
    North Corporation conducts ‘street-view videography’ to know footpath conditions; float tenders for maintenance Nation
  • Larry The Cat Awaits Sixth Prime Minister As UK Election Nears
    Larry The Cat Awaits Sixth Prime Minister As UK Election Nears World
India’s unemployment data dilemma – The Hindu

India’s unemployment data dilemma – The Hindu

Posted on September 6, 2026 By admin


The challenge in measuring the unemployment rate using the Current Weekly Status (CWS) approach — where a person’s activity status is determined based on the preceding seven days — is to assess not only whether people are employed, but also the nature of their jobs, the frequency and regularity of their payments, and the overall quality of employment.
| Photo Credit: Getty Images/iStockphoto

The government has finally found a way to measure the statistical elephant of unemployment; however, it may be incomplete — much like the blind men who touched different parts of a pachyderm and mistook it for the whole truth.

The challenge in measuring the unemployment rate using the Current Weekly Status (CWS) approach — where a person’s activity status is determined based on the preceding seven days — is to assess not only whether people are employed, but also the nature of their jobs, the frequency and regularity of their payments, and the overall quality of employment. In an economy where a vast majority of the population are involved in informal work, employment cannot be analysed through a headline rate of high frequency indicator, if it can be called so.

Also Read | Marginal increase in unemployment rate April-June quarter: PLFS

India’s decision to transform the quarterly/yearly unemployment data into a monthly indicator is economically desirable, even if its credibility is questionable given the nature of its database, which seldom takes into account circular migration.

Efforts have been made to strengthen India’s database comprising EPFO (Employees’ Provident Fund Organisation) and ESIC (Employees’ State Insurance Corporation) payroll data, GST-based enterprise information, income tax records, corporate payroll data, gig economy employment data, and rural wage indicators but at present, even these sources remain fragmented. Unlike a mature labour market — comprising payroll surveys, unemployment insurance records, formal contracts, and extensive administrative databases — India’s large informal employment market is difficult to track.

Most advanced nations count unemployment using a Labour Force Survey based on the definition of the International Labour Organization (ILO). The U.S., Japan, EU and the U.K. have decades of household survey data with detailed information on full-time versus part-time jobs, hourly wages, job duration, labour mobility, and unemployment spells.

Also Read | The stark reality of the missing jobs for India’s Gen Z 

A leading indicator

The latest Periodic Labour Force Survey (PLFS) says that India’s unemployment rate for those aged 15 years and above marked a four-month low of 5.1% in July. The review period coincided with the peak of kharif season, when demand for agricultural labour rose for land preparation, transplanting, and allied activities. Since construction, agriculture, small trade, logistics, and local services see seasonal fluctuations, it is likely that July’s decline reflects increased hiring in these segments rather than a broad-based expansion in formal sector jobs.

Monthly unemployment should at the best be a leading indicator, not a comprehensive measure of labour market health.

India has a labour market where various reports suggest that 90% of the population are involved in the informal sector; agricultural employment remains seasonal, with wage payments negotiated informally and where underemployment/ disguised employment is widespread. Indicating limited granularity, data is rather sketchy on wage growth, hours worked, job quality, occupational shifts, and sector-wise employment trends. Therefore, monthly unemployment data reflects seasonal movements rather than structural improvement. A fall in unemployment may indicate distress-driven entry into low-productivity jobs rather than genuine employment creation.

COMMENT | The fact is youth unemployment has a household cost 

The overall decline in unemployment was owing to rural areas, where unemployment declined to 4.5% from 5%; but it should not be read as a major improvement in the job market. Independent labour studies estimate that there are between 30 to 35 million seasonal labourers moving across India annually, forming the invisible backbone of urban construction and infrastructure.

The July data saw an increase in the labour force participation rate, a positive supply-side signal, but stronger investment and job creation prefix sustainable employment recovery. The challenge is to convert this participation into stable, high-productivity jobs.

The revamped PLFS is a significant improvement over earlier low-frequency labour statistics but its success ultimately depends on whether it gauges the reality of the job market — not merely measuring it more frequently. A credible labour market barometer is the need of the hour to capture the livelihoods of millions of workers.

santosh.v@thehindu.co.in

Published – September 07, 2026 12:38 am IST



Source link

Business Tags:current weekly status unemployment, india unemployment data, unemployment rate in india

Post navigation

Previous Post: Satya Niketan building collapse: students help clear debris, aid rescue operations
Next Post: India-France relations have reached new heights: PM Modi

Related Posts

  • Access Denied Business
  • Access Denied Business
  • ‘Historic’ Budget Reflects Aspirations Of 140 Crore Indians: PM Modi Business
  • No Restriction On Laptop Imports, We’re Only Monitoring: Commerce Secretary
    No Restriction On Laptop Imports, We’re Only Monitoring: Commerce Secretary Business
  • Access Denied Business
  • Eight core sectors’ output growth spurts to three-month high of 6.7% in February
    Eight core sectors’ output growth spurts to three-month high of 6.7% in February Business

More Related Articles

Access Denied Business
LIC sells over 2% stake in Sun Pharma for ₹4,699 crore LIC sells over 2% stake in Sun Pharma for ₹4,699 crore Business
Access Denied Business
Markets decline in early trade on higher crude oil prices, selling in bank stocks Markets decline in early trade on higher crude oil prices, selling in bank stocks Business
Tamil Nadu among States that saw a dip in capex in Q1, FY2026 Tamil Nadu among States that saw a dip in capex in Q1, FY2026 Business
Access Denied Business
SiteLock

Archives

  • September 2026
  • August 2026
  • July 2026
  • June 2026
  • May 2026
  • April 2026
  • March 2026
  • February 2026
  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022

Categories

  • Business
  • Nation
  • Science
  • Sports
  • World

Recent Posts

  • Battle lines in the boardroom | Tata Sons
  • Donald Trump seeks to bring health-research funding under his control, Politico reports
  • Residents want dislodged railings along tracks on GST Road in East Tambaram fixed and opening on Sudhanandha Bharati Salai closed
  • The Hindu Foundation Day: revisiting the journey
  • Medians needed at sharp bends in Guindy – The Hindu

Recent Comments

  1. DonaldFrosy on UP Teacher Who Asked Students To Slap Muslim Classmate
  2. DonaldFrosy on UP Teacher Who Asked Students To Slap Muslim Classmate
  3. YWgliuZUXRuWYumGOFzzpY on UP Teacher Who Asked Students To Slap Muslim Classmate
  4. AlvinNet on UP Teacher Who Asked Students To Slap Muslim Classmate
  5. AlvinNet on UP Teacher Who Asked Students To Slap Muslim Classmate
  • U.S., Iran and mediators make push for 45-day ceasefire, Axios reports
    U.S., Iran and mediators make push for 45-day ceasefire, Axios reports World
  • Trump pushes 1-year, 10% cap on credit card interest rates, banks balk
    Trump pushes 1-year, 10% cap on credit card interest rates, banks balk World
  • Access Denied Business
  • Access Denied Sports
  • China criticises Australia, Canada warships in Taiwan Strait
    China criticises Australia, Canada warships in Taiwan Strait World
  • How does general anaesthesia work?
    How does general anaesthesia work? Science
  • Watch: Marco Rubio declares ‘old world is gone,’ calls for rebuilding western order
    Watch: Marco Rubio declares ‘old world is gone,’ calls for rebuilding western order World
  • Explained: What is Shigella infection?
    Explained: What is Shigella infection? Science

Editor-in-Chief:
Mohammad Ariff,
MSW, MAJMC, BSW, DTL, CTS, CNM, CCR, CAL, RSL, ASOC.
editor@artifex.news

Associate Editors:
1. Zenellis R. Tuba,
zenelis@artifex.news
2. Haris Daniyel
daniyel@artifex.news

Photograher:
Rohan Das
rohan@artifex.news

Artifex.News offers Online Paid Internships to college students from India and Abroad. Interns will get a PRESS CARD and other online offers.
Send your CV (Subjectline: Paid Internship) to internship@artifex.news

Links:
Associate Journalism
About Us
Privacy Policy

News Links:
Breaking News
World
Nation
Sports
Business
Entertainment
Lifestyle

Registered Office:
72/A, Elliot Road, Kolkata - 700016
Tel: 033-22277777, 033-22172217
Email: office@artifex.news

Editorial Office / News Desk:
No. 13, Mezzanine Floor, Esplanade Metro Rail Station,
12 J. L. Nehru Road, Kolkata - 700069.
(Entry from Gate No. 5)
Tel: 033-46011099, 033-46046046
Email: editor@artifex.news

Copyright © 2023 Artifex.News Newsportal designed by Artifex Infotech.