Page 346 - economic review

EMPLOYMENT318

Box 9.1
Key indicators of Employment and Unemployment: Basic concepts
Labour Force Participation Rate (LFPR): Labour force refers to the population which sup-
plies or offers to supply labour for pursuing economic activities for the production of goods and
services and, therefore, includes both ‘employed’ and ‘unemployed’ persons. Labour Force
Participation Rate is defined as the number of persons in the labour force per 1000 persons.

Worker Population Ratio (WPR): Worker Population Ratio or Work Participation Rate is de-
fined as the number of persons employed per 1000 persons.

Proportion Unemployed (PU): Proportion Unemployed is defined as the number of persons
unemployed per 1000 persons.

Unemployment Rate (UR): Unemployment Rate is defined as the number of persons unem-
ployed per 1000 persons in the labour force (employed & unemployed).

Note: The above indicators are usually expressed in thousands. However, they can be expressed in
percentages also.

Source: Various NSS Reports
9.6 India is a country where majority of the workers are employed in the unorganized sector and
pursuing multiple activities. Thus, adopting a single approach for estimation of labour statistics will
be inappropriate, as it may not produce precise or accurate estimates. Therefore, in India, estimation
is carried out in four different approaches as presented in Box 9.2.

Kerala State Planning Board