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Shortfalls in employment surveys

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October 13, 2017

What is the issue?

  • There has been a lack of official unemployment estimates.
  • This undermines democratic accountability.

What are theshortfalls in employment survey mechanisms?

  • NSSO - there has been a delay in mapping unemployment by the National sample survey office, where the last employment survey took place in 2011-12.
  • There is also no clear decision on upcoming employment surveys, whether it should stick to April-March cycle or shift to June-July cycle.
  • Shifting the cycle has its own complications like data becoming incomparable.
  • CIME -Centre for Monitoring the Indian Economyis able to produce high-frequency unemployment data with a large sample size using innovative methods such as hand-held devices.
  • It has estimated that urban unemployment in the first full week of October was at its highest in 11 months.
  • But the estimates by this organisations are not taken into account by the government.
  • Non-State actors - Many non-state actors are also taking surveys which are many times biased or not reliable.
  • It is puzzling to see the non-state actors taking up the task of conducting surveys using digital technology, while the government lags in its data collection mechanisms.

What are impacts of lack of employment data?

  • Unavailability of unemployment data, comparability of overall growth estimates have made the economy opaque.
  • The delays in survey during the turbulent times have become a major obstacle in framing suitable policies.
  • This crisis can be clearly seen on the small and medium enterprises (SMEs) which were affected by demonetisation and GST.
  • They have been the engine of employment growth in India, given the constraints on hiring and firing by the larger companies.

Way Forward

  • The government has failed to bring in this crucial aspect of governance- collection of employment data under the radar of its Digital India.
  • To respond and realign the priorities with appropriate policies, government needs to update its data collection mechanisms.
  • This will ensure confidence and transparency in the economy and also boost investments.

 

Source: Business Standard

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