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Question

How is unemployment different from underemployment? How is unemployment measured in India?

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Solution

Unemployment is a situation in which people are willing to work and capable to work, but still, they are not getting work. Underemployment, on the other hand, is a situation in which an individual is working much below his potential.

As per 27th round of NSSO, three types of estimates are available:

(i) Usual Status Unemployment - It is measured in the number of persons who remained unemployed for a major part of the year.

(ii) Weekly Status Unemployment - It is measured in the number of persons who did not find any work even for an hour during the week proceeding the survey week.

(iii) Daily Status Unemployment - Daily status unemployment is measured in terms of the number of man-days a person was not getting work on a day during the week proceeding the survey week.

Out of these three, the daily status unemployment concept is most appropriate because it takes into consideration both open and underemployment.

Unemployment Rate by Daily Status =Daily Status UnemploymentNumber of Man Days Available×100


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