28 October: measuring unemployment
Wednesday 28 October 2026
GS Paper 3 · 250 words · 15 marks
Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.
(UPSC Mains 2023, GS Paper 3, Q11)
You have eleven minutes. Write your answer before you read anything below.
Open only after you have written
How to approach this question
The directive. Examine the method means look at how it works and where it falls short. The first sentence of the question is a claim you can accept in one or two lines. Most of your words go on the method and the improvements.
A shape that works in 250 words.
| Part | Words | What to write |
|---|---|---|
| Introduction | 30 | Accept the claim, with one reason |
| Why it is structural | 35 | Where workers are, and the skills gap |
| The method | 60 | The PLFS and its three measures |
| Its problems | 50 | What the measures miss |
| Improvements | 50 | Three or four, matched to the problems |
| Conclusion | 25 | Why better measurement helps policy |
Material you can use.
| Measure | Reference period | Counted as employed if |
|---|---|---|
| Usual status | Previous 365 days | Main activity was work, or worked 30 days or more in a subsidiary role |
| Current weekly status | Previous 7 days | Worked at least one hour on any day |
| Current daily status | Each half-day of the previous 7 days | Worked in that half-day |
| Other sources | What they add |
|---|---|
| Time Use Survey (2019, 2024) | Unpaid care and domestic work |
| EPFO payroll data | Formal jobs |
| e-Shram portal | Registered unorganised workers |
| ILO standards on work statistics (2013) | Measures of labour underutilisation |
Mistakes to avoid.
| Mistake | What to do instead |
|---|---|
| Writing only about causes of unemployment | Spend most of your words on the method |
| Naming the PLFS without its measures | Give the reference periods |
| Improvements that do not match a problem | Pair each improvement with what it fixes |
A model answer
Much of India's unemployment is structural. Jobs have not grown where workers are, and many workers lack the skills new jobs need.
Why it is structural. Close to half of India's workers are still in agriculture. Manufacturing has not absorbed them. Unemployment is highest among educated young people, which shows a gap between skills and jobs.
The method. The National Statistical Office runs the Periodic Labour Force Survey (PLFS), started in 2017. Since 2025 it also releases monthly estimates. It uses three measures. Usual status looks at the previous 365 days. Current weekly status counts a person as employed if they worked at least one hour in the past week. Current daily status records each half-day of the past week.
Its problems. One hour a week, or 30 days a year in a subsidiary role, counts as employment. This hides underemployment. Unpaid family helpers count as employed. Unpaid care work, done mostly by women, is not counted as work. Gig work is hard to classify.
Improvements.
- Report time-related underemployment and labour underutilisation, as the ILO's 2013 standards recommend.
- Combine the PLFS with the Time Use Survey to count unpaid work.
- Use EPFO payroll and e-Shram data to track formal and informal jobs.
- Publish district-level estimates so skilling schemes can target local gaps.
Structural unemployment needs policy aimed at sectors, skills and places. Measures of underemployment and district data would show where that policy should go.
Word count: 235.
| Where | What earns credit |
|---|---|
| Opening | Accepts the claim with a reason, in two lines |
| Body | Correct definitions, then problems, then matched fixes |
| Conclusion | Links measurement back to structural policy |