Question

Consider the different methods for estimating unemployment in India.

1. The Usual Principal Activity Status (UPS) method generally provides the lowest estimates of unemployment.
2. The Current Daily Status (CDS) method tends to yield the highest estimates of unemployment due to its detailed daily assessment.
3. The Current Weekly Status (CWS) method offers a more current assessment than UPS but is less granular than CDS.

• A. 3 only
• B. 2, 3
• C. All of these
• D. 2 only

Answer 1

Answer:

C. All of these

• The three main methods of unemployment estimation in India—UPS, CWS, and CDS—offer different perspectives on the labor market. UPS provides a long-term view, capturing chronic unemployment over a year, and thus typically yields the lowest figures.

• CWS gives a medium-term view, reflecting the weekly employment situation, and often shows moderate unemployment figures.

• CDS, being the most granular with a daily assessment, captures even short spells of unemployment and underemployment, resulting in the highest estimates.

• This range of measures is essential for policymakers to understand the multifaceted nature of unemployment, from structural issues to temporary daily fluctuations, enabling them to formulate targeted interventions.