Unemployment: Meaning, Types & Measurement
- It is a situation in which people are ready and willing to work at the existing rate of wages but still, they cannot get work.
- Measurement of unemployment and employment are done by National Sample Survey Organization (NSSO) in India.
- NSSO divides people into the following three categories -
- Working people (engaged in an economic activity)
- Not working (looking for work)
- Neither working nor looking for work
- People in category (a) are called workforce.
- People in category (b) are called unemployed.
- People in categories (a) and (b) are called Labour force.
- People in category (c) are called not in the Labour force.
- Number of unemployed = Labour force – Workforce
- Unemployment data in India are kept under the Ministry of Labour and Employment.
Types of Unemployment
Type of Unemployment
Cyclical Unemployment (Demand Deficiency Unemployment)
Unemployment in India is measured in a variety of ways.
The National Sample Survey Office (NSSO), which is part of the Ministry of Statistics and Programme Implementation (MoSPI), uses the following methods to calculate unemployment in India:
- Usual Status Approach: It estimates only those persons as unemployed who had no gainful work for a major time during the last 365 days before the date of survey.
- Weekly Status Approach: It records only those persons as unemployed who did not have gainful work even for an hour on any day of the week before the date of survey.
- Daily Status Approach: In this approach, unemployment status of a person is estimated for each day in a reference week. A person having no gainful work even for 1 hour in a day is described as unemployed for that day.