Question

Regarding the Usual Principal Activity Status (UPS) method of unemployment estimation, which of the following statements is true?

1. The UPS method uses a reference period of 365 days preceding the date of the survey.
2. This measure aims to estimate the number of persons who remained unemployed for only a minor part of the year.
3. The Usual Status method typically yields the highest estimates of unemployment compared to other methods.

• A. i, ii
• B. iii
• C. i മാത്രം
• D. ഇവയൊന്നുമല്ല

Answer 1

Answer:

C. i മാത്രം

• The Usual Principal Activity Status (UPS) method is designed to capture the long-term or chronic unemployment in the economy.

• By using a long reference period of 365 days, it identifies individuals whose primary activity for a major part of the year was being unemployed or not engaged in productive work.

• This method is crucial for understanding the structural aspects of unemployment as it smooths out seasonal and short-term fluctuations, providing a stable, albeit lower, estimate of the unemployed population.

• It is often used to determine the usual economic status of a person over a prolonged period, classifying them as employed, unemployed, or outside the labor force based on their dominant activity during the reference year.