Page 345 - economic review

CHAPTER 317

EMPLOYMENT

Introduction

Employment has always figured as an important element of the development process of Indian
economy. It is closely interlinked with economic growth and poverty reduction. For growth to be
inclusive it must create adequate livelihood opportunities for various sections of labour force by
providing decent employment. In Kerala, unemployment is always a serious problem, particularly the
unemployment of educated persons.

Estimation on Employment and Unemployment: Conceptual Framework

9.2 Data on employment and unemployment are required at periodic intervals to undertake appropriate
policy planning decisions aimed at reducing poverty by providing employment opportunities to the
people. International standards on measuring labour statistics are set by the International Labour
Organisation (ILO). These standards are fixed through resolutions of International Conference
of Labour Statisticians (ICLS), which is convened by the ILO about every five years. The current
standards for labour force statistics on employment and unemployment are the standards adopted
by the Thirteenth ICLS in 1982.

9.3 The main sources of data on employment/unemployment in India are the various surveys
being conducted by the National Sample Survey Organization (NSSO), the Population Census, the
Economic Census, the annual employment-unemployment survey conducted by the Labour Bureau
(an agency under the Ministry of Labour and Employment) and the Employment Market Information
Programme of Director General of Employment & Training, which provides information on the
organized sector employment and Employment Exchange Statistics.

9.4 Even though data is available through the various sources, surveys conducted by the NSSO
are considered as the main data source on employment and unemployment in the country and
are being extensively used. Beginning with the 27th round survey, NSSO has been conducting
surveys on employment and unemployment at periodic intervals in the country. So far nine surveys
on employment and unemployment have been conducted by the NSSO. Latest in this series was the
survey conducted in 2011-12 as part of the 68th round of National Sample Survey.

9.5 Key indicators reflecting the prevalence of employment and unemployment are Labour Force
Participation Rate (LFPR), Worker Population Ratio (WPR), Proportion Unemployed (PU) and
Unemployment Rate (UR). The basic concepts on these indicators are given in Box 9.1.

Economic Review 2014