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-tttttttt`-tt tttt -ttt`-ttt`-t-t ~tt`-tt78.84 79.00 78.91t-t ttttt`-tt tttt-t tt`-ttt`-t-t ~tt`-tt76.02 70.66 74.45t-t rttt t tttt -ttt`-ttt`-t-t ~tt`-tt66.59 48.41 60.33 86.58 51.34 72.24 67.09 48.51 60.65t`-t-tt`-t-t -tttft-t-ttttt ttt-t175.30 108.14 162.94 276.04 212.86 265.18 238.41 171.68 226.64*****HighlightsNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008H-iHIGHLIGHTSThis report is based on the 64thround survey on employment and unemployment and migrationparticulars conducted during July, 2007 to June, 2008. The survey covereda sample of 1,25,578households (79,091 in rural areas and 46,487 in urban areas) and a sample of 5,72,254 persons(3,74,294 in rural areas and 1,97,960 in urban areas). Employment and unemployment rates weremeasured in three different approaches, viz. usual status (us) with a referenceperiod of one year,current weekly status (cws) with a one-week reference period and current daily status (cds) basedon the daily activity pursued during each day of the reference week. Unless otherwise stated, allusual status workers will mean all workers taking into consideration the usual principal andsubsidiary status taken together (ps+ss). Some of the key findings are stated below.A. Household and Population CharacteristicsAbout 72 per cent of the households belonged to rural India and accountedfor nearly74 per cent of the total population.Average household size in India was 4.5. The rural household size (4.7) was slightlyhigher than urban household size (4.2).The population in the age group 15-59 years, which is defined to beeconomicallyactive, comprised about 57 per cent of males and 60 per cent of females in ruralareasand about 67 per cent of males and 66 per cent of females in urban areas.B. Labour Force and Work ForceAccording to the usual status (ps+ss), 41 per cent of population belonged to thelabourforce. This proportion was 43 per cent for rural and 37 per cent for urban areas. Thelabour force participation rate (LFPR) was about 56 per cent of rural males and29 percent of rural females belonged to the labour force. The corresponding proportions in theurban areas were 58 per cent and 15 per cent, respectively.About 40 per cent of the population in the country were employed according usualstatus (ps+ss). The worker population ratio (WPR) was about 42 per centin the ruralareas and 35 per cent in the urban areas.The male WPR in both the rural and urban areas were considerably higher than femaleWPR. In both the rural and urban areas, male WPR was nearly 55 per cent. Compared tothis, the female WPR was 29 per cent in rural areas and 14 per cent in urban areas.The WPRs obtained according to current daily status were lower than those obtained inthe current weekly status, which, in turn, were lower than those according to usualstatus rates: WPR in India, was 34 per cent as per current daily status, 37 per centaccording to current weekly status, and it was 40 per cent according to usual status.Between 2004-2005 and 2007-08, in both rural and urban areas, WPR formales inusual status (ps+ss) remained unchanged at 55 per cent. However, for females, itdecreased by about 4 percentage points for rural areas (from 33 per cent to 29 per cent)and about 3 percentage points for urban areas (from 17 per cent to 14 per cent).HighlightsNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008H-iiWPR for children of age 5-14 years had shown a declining trend during the periodfrom1993-94 and 2007-08. The reduction in WPR for both male and female children in ruralareas was from 6 per cent in 1993-94 to 2 per cent in 2007-08. In the urban areas, thereduction in WPR for male children was from 4 per cent in 1993-94 to 2 per cent in2007-08 and for female children from 3 per cent to 1 per cent.In usual status (ps+ss), among rural males, WPR was the highest (57 per cent) amongthe scheduled tribe (ST) while it was the lowest (54 per cent) amongscheduled caste(SC) and other backward class (OBC). Female WPR, in the rural areas, was the highestfor ST (40 per cent) and the lowest for others(22 per cent).Among urban males, WPR according to usual status was the highest forSC andothers (56 per cent each) while WPR was the lowest among the ST (51 per cent).Female WPR, in the urban areas, was the highest among the ST (20 per cent) and thelowest among the others (12 per cent).Self-employment status was dominant for both males and females in bothrural andurban area. In rural India, more than half of the usually employed (all workers) wereself-employed 55 per cent among males and nearly 58 per cent among females. Thecorresponding figures in urban India were 43 per cent for males and 42 per cent forfemales.The percentage of regular wage/salaried employees was relatively lower amongfemales as compared to males in both rural and urban India. The proportion of regularwage/salaried persons was 9 per cent for males and 4 per cent for females in theruralareas, whereas in urban areas, these figures were 42 per cent and 38per centrespectively.The share of the casual labourers in total workforce was much higher in the rural areasthan in the urban areas. In the rural areas, nearly 36 per cent ofmale workers and 38per cent of female workers, were casual labourers.In the urban areas, nearly 15 percent of male workers and 20 per cent of female workers were casual labourers.In rural India, among the usually employed (ps+ss), about 67 per cent of males and 84per cent of females were engaged in agriculture sector. The corresponding figures in1977-78 were 81 per cent and 88 per cent, respectively.In urban India, the trade, hotel and restaurant sector engaged about 28 per cent of themale workers, while in manufacturing nearly 24 per cent of the male workers wereengaged. During 1977-78 to 2007-08, the proportion of urban males engaged inmanufacturing decreased from 28 per cent to 24 per cent while the increase for trade,hotel & restaurant during this time period was from 22 per cent to 28 per cent.For urban females, other services sector accounted for the highest proportion (38percent) of workers, followed by manufacturing (28 per cent) and agriculture (15 percent).Since 1977-78, the proportion of urban females employed in agriculture fell by nearly17 percentage points (from 32 per cent in 1977-78 to 15 per cent in 2007-08).HighlightsNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008H-iiiCompared to the urban areas, in the rural areas, a very high percentage of persons wereengaged in subsidiary economic activity. About 14 per cent of rural population and 2per cent of urban population were engaged in subsidiary economic activity.In the rural areas, engagement in subsidiary economic activity was more prevalentamong those classified as workers in the usual principal activity status.Nearly 25 percent of rural male workers (as per PS) and 24 per cent of rural female worker (as perPS) were engaged in subsidiary economic activity.Considerable gender differentials in the wage rates (per day) for regular wage/salariedemployees were observed. The average wage rate for regular wage/salariedemployees, of age 15-59 years, in rural areas was 175.30 for males and Rs. 108.14 forfemales and in the urban areas, male wage rate was Rs. 276.04 against the femalewagerate of Rs. 212.86.The wage rate for casual labour in public works was significantly higher than that forthe casual labours in other than public works.In the rural areas, the wage rate, for workers of age 15-59 years, engaged as casuallabour in public works other than Mahatma Gandhi NREG (MGNREG) public workswas Rs. 74.45 and for MGNREG public works, was Rs. 78.91. On the other hand,thewage rates, for workers of age 15-59 years, engaged as casual labourin other thanpublic works was Rs. 60.33 in the rural areas and Rs. 72.24 in urban areas.No male-female disparity in the wage rates for casual labours in MGNREG publicworks existed and the disparity was almost negligible in case of casual labour in otherthan MGNREG public works. However, considerable male-female and rural-urbandisparities in wage rate existed among the casual labours in other type of works.In the rural areas, average male wage rate (of workers of age 15-59 years) for casuallabour other than MGNREG public works was Rs. 76.02 and it was Rs. 70.66 forfemales.There was no gender differential in wage rate for casual labour in MGNREG publicworks, the wage rate (of workers of age 15-59 years) was nearly Rs.79.00 for bothmale and female.The percentage share of person-days in rural casual labour in public works during NSS64thround was four times higher than that observed in NSS 61stround. In the ruralareas, share of person-days in MGNREG public works and other public worksin totalcasual labour person-days for male and female combined was 3.2 per cent.In the rural sector, on an average, Rs. 66.59 was earned in a dayby a male casuallabourer (of age 15-59 years) engaged in casual labours other than public works,whereas a female casual labourer earned Rs. 48.41a day showing adifference ofabout Rs. 18. In the urban areas, a male casual labourer engaged in works other thanpublic works earned Rs. 86.58 in a day and a female, Rs. 51.34 in a day.HighlightsNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008H-ivC. Unemployment RateAt the all-India level, unemployment rate was nearly 8 per cent in the cds approach. Theunemployment rate stood at nearly 4 per cent in cws and 2 per centin the usual statusapproach, i.e., in usual (adj.).The unemployment rates for the urban areas in the usual (adusted.) status approach was 4per cent compared to 2 per cent in the rural areas and 5 per cent in cws in theurban areascompared to 4 per cent in the rural areas. In cds the rate was nearly 7 per centin the urbanareas and 8 per cent in the rural areas.In the rural areas, generally, the female unemployment rate was lowerthan the maleunemployment rate, in all the approaches of measurement, but this trend was reverse inthe case of urban areas.In the rural areas, female unemployment rate stood at 8 per cent in cds comparedto 9 percent for males while in the urban areas, female unemployment rate in the cds wasnearly10 per cent which was 3 percentage point higher compared to male unemployment rate.D. UnderemploymentThe proportion of usually employed males (ps+ss) who are found to be notemployed(unemployed+not in the labour force) during the week preceding the dateof survey(current weekly status) was 4 per cent in the rural and 2 per cent in the urban areas.The proportion of usually employed females (ps+ss) not employed (unemployed+ notin the labour force) during the week preceding the date of survey was as high as19 percent in the rural and 7 per cent in urban areas.The proportion of person- days without work (unemployed+ not in the labour force) ofthe usually employed (ps+ss) was about 36 per cent and 19 per cent for females in ruraland urban areas respectively as against 11 and 5 per cent for males in rural and urbanareas respectively.The percentage of person-days on which persons with some work during the referenceweek (according to the current weekly status) were without work (unemployed+notinthe labour force) was about 7 for rural males, 21 per rural females, 3 for urban malesand 12 for urban females.The above approximate indicators of rate of underemployment indicate that theincidence of underemployment was higher in rural than urban and higherfor femalesthan for males.HighlightsNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008H-vSome important employment and unemployment indicators at a glancerural urban rural+urbanindicator male female person male female person male female person(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)usual principal statusLFPR 551 220 389 573 126 358 557 196 381WPR 538 216 381 550 118 342 541 190 371PU 13 4 9 23 8 16 16 5 11UR 23 19 22 40 66 45 28 27 28usual status (ps + ss)LFPR 559 292 429 576 146 369 563 254 413WPR 548 289 422 554 138 354 550 250 404PU 11 3 7 22 8 15 14 4 9UR 19 11 16 38 52 41 24 17 22current weekly statusLFPR 547 245 400 572 138 363 554 217 390WPR 525 237 384 545 129 345 530 209 374PU 22 9 16 27 9 18 24 9 16UR 41 35 39 47 65 50 43 40 42current daily statusLFPR 536 204 374 568 125 355 544 183 369WPR 490 187 342 529 113 329 500 168 339PU 45 17 31 39 12 26 44 15 30UR 85 81 84 69 95 74 80 84 81wage rates (Rs.) for persons of age 15-59 yearsCasual labour inMGNREGA publicworks78.84 79.00 78.91Casual labour inother public works76.02 70.66 74.45Casual labour inother type of works66.59 48.41 60.33 86.58 51.34 72.24 67.09 48.51 60.65Regular wage/salaried persons175.30 108.14 162.94 276.04 212.86 265.18 238.41 171.68 226.64ContentsReport No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008CONTENTSPageChapter OneIntroductionThe report in perspective 1Background 1-2Scope of the present survey 2-3The survey outline 3Sampling design 3-4Contents of the Report 4Plan for release of results 4Chapter TwoConcepts and DefinitionsConcepts and definitions of some important terms 5-16Annexure I: Broad Structure of NIC 2004 (Sections andDivisions)17-18Chapter ThreeSummary of FindingsIntroduction19-20Characteristics of Households and Population 20-27Labour Force and Employed Population 27-51Unemployment 51-57Underemployment 58-60Employment and Unemployment Situation among SocialGroups60-65Some important results (Statements) for each State/U.T. 66-197Appendix ADetailed TablesA-1 A-295Appendix BSample Design and Estimation ProcedureB-1 B-8Appendix CFacsimile of Schedule 10.2 on Employment &Unemployment and Migration ParticularsC-1 C-10Appendix DProjected PopulationD-1 D-3ContentsReport No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008Appendix A: Detailed TablesTable No. Title PageTable (1): Number of villages/ UFS blocks, households and persons surveyed bystate/ u.t.A-1Table (2) Estimated number of households and number of persons by ageand sex,average household size, sex ratio for each state/ u.t.A-1 - A-4Table (3) Class limits of the quintile groups on MPCE and average MPCE for eachquintile group for each state/ u.t.A-5 - A-6Table (4) Class limits of the decile groups on MPCE and average MPCEfor eachdecile group for all-IndiaA-7Table (5) Distribution (per 1000) of persons of age 5 years and above by levels ofgeneral and technical education for different age-groupsA-8 A-16Table (6) Distribution (per 1000) of persons by usual principal activity category foreach age-groupA-17 A-25Table (7) Distribution (per 1000) of persons by usual activity category taking alsointo consideration the subsidiary economic status of persons categorizednot working in the principal status (ps+ss) for each age-group separatelyfor each household social groupA-26 A-70Table (8) Distribution (per 1000) of persons by current weekly activity for eachagegroupA-71 A-115Table (9) Distribution (per 1000) of person-days by current daily activityfor eachage-groupA-116 A-160Table (10) Distribution (per 1000) of usually working persons by industry of work A-161 A-166Table (11) Distribution (per 1000) ofpersons/ person-days working according tocws/ cds by industry of workA-167 A-172Table (12) Distribution (per 10,000) of workers by occupation group/division A173 A-175Table (13) Distribution (per 1000) of persons by current weekly activitystatus forpersons with different usual activity status (ps+ss)A-176 A-181Table (14) Distribution (per 1000) of person-days by current daily activity status forpersons with different usual activity status (ps+ss)A-182 A-187Table (15) Distribution (per 1000) of person-days by current daily activitystatus forpersons with different current weekly activity statusA-188 A-193Table (16) Distribution (per 1000) of persons by usual subsidiary economicactivityfor each usual principal activityA-194 A-202ContentsReport No. 531: Employment and Unemployment Situation in India: July, 2007-June, 2008Table No. Title PageTable (17) Distribution (per 1000) of persons by usual activity categorytaking alsointo consideration the subsidiary economic status of persons categorisednot workingin the principal status (ps+ss) for each general educationallevel for each of the age groups 0-14, 15-24, 15-29, 15-59, 15+ andallagesA-203 A-256Table (18) Distribution (per 1000) of persons byusual activity categorytaking alsointo consideration the subsidiary economic status of persons categorizednot working in the principal status (ps+ss) for each decile group onhousehold monthly per capita consumer expenditure classA-257 A-262Table (19R/U) Distribution (per 1000) of persons by usual activity category taking alsointo consideration the subsidiary economic status of persons categorisednot working in the principal status (ps+ss) for each household typeforrural/urban areasA-263 A-268Table (20) Average wage/ salary earnings (Rs. 0.00) per day received from regularwage/salaried employment (31,71 & 72) according to current daily statusby industry of work and broad educational level for the persons of agegroups 15-59 years and 15+A-269 A-286Table (21) Average wage earnings (Rs. 0.00) per day received by casualwageemployment (41,42, 51) according to current daily status by industry ofwork for different age-groupsA-287 A-295Chapter OneIntroductionNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007June, 20081Chapter OneIntroduction1.0 The report in perspective1.0.1 An all-India survey on the situation of employment and unemployment and migrationparticulars in India was carried out during NSS 64thround (July, 2007 to June, 2008). Thecollection of information on employment and unemployment particulars wasas a part of theannual series of the National Sample Survey Organisation (NSSO) which was started in NSS60thround and repeated in NSS 62ndround. In between NSS 60thand NSS 62ndround, theseventh quinquennial round of NSS was conducted in NSS 61stround (2004-05). The overallsample size for NSS 64thround was comparable with that of NSS 61stround but was on thelower side in NSS 62ndround. However, the designs of these three rounds were different. NSS61stand 64throunds were oriented towards demographic design while the design of NSS 62ndround design was enterprise based.1.0.2 In this round, the scope of the survey on employment and unemployment wasenhancedwith the collection of information on migration particulars of the households, of the householdmembers and of the out-migrants. In this survey, a nation-wide enquirywas conducted in amoderately large sample of households to provide estimates on variouscharacteristicspertaining to employment and unemployment and migration particulars inIndia and somecharacteristics associated with them at the national and state levels.Information on variousfacets of employment and unemployment and migration in India were collected through aschedule of enquiry (Schedule 10.2). Based on the data collected during the survey period,estimates pertaining to employment-unemployment in India along with various characteristicsassociated with these have been presented in this report.1.1 Background1.1.1Past Surveys: To assess the volume and structure of employmentand unemployment,starting with the 9thround (May-September, 1955), NSSO conducted a number of surveys onemployment and unemployment. To give a firm conceptual framework for conducting suchsurveys, the Planning Commission, in the year 1970, set up an ExpertCommittee onUnemployment Estimates, (popularly known as the Dantwala Committee), which reviewedthese surveys and the indicators generated from such surveys.Basedon concepts anddefinitions recommended by this Committee, the first quinquennial survey on employment andunemployment was conducted in the 27thround of NSS.After the 27thround, quinquennialsurveys on employment and unemployment situation in India have been carried out by theNSSO, during the 32ndround (July 1977 - June 1978), 38thround (January 1983 - December1983), 43rdround (July 1987 - June 1988), 50thround (July 1993 - June 1994), 55thround (July1999 - June 2000) and 61stround (July 2004 - June 2005) in which concepts, definitions andprocedures were based primarily on the recommendations of the DantwalaCommittee. Theresults of these surveys have been brought out in the form of NSS reports.1.1.2 Other surveys on employment-unemployment: Apart from these quinquennial surveys onemployment and unemployment, NSSO has been regularly collecting information on certainkey items on employment and unemployment, as a part of annual series, from a smaller sampleof households in each round since its 45thround (July 1989 - June 1990) through the scheduleon Household Consumer Expenditure (Schedule 1.0). The objective of datacollected in theannual series was, measuring employment and unemployment indicators in termsof the usualChapter OneIntroductionNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007June, 20082and current weekly statuses only, and study of these indicators in respect of category ofemployment, industrial distribution of the usually employed, etc. These procedures continuedtill the 59throundof NSS. In the NSS 60thround survey, there was a significant change inrespect of the procedure of data collection and content of informationas compared to theearlier annual rounds. In the NSS 60thround and in NSS 62ndround, a separate schedule(Schedule 10) on employment and unemployment was canvassed in a separate set of samplehousehold to enable providing estimates of employment and unemploymenton the basis ofcurrent daily status approach also.1.2 Scope of the present survey1.2.1 Subject coverage: The 64thround (July 2007-June 2008) of NSS was earmarked forsurvey on Employment-Unemployment and Migration, Participation and expenditure inEducation and Household Consumer Expenditure. In this survey, information on variousfacets of employment and unemployment as well as on migration in India was collectedthrough the employment-unemployment schedule (Schedule 10.2). In terms of subjectcoverage for employment and unemployment part of the schedule, this survey is broadlysimilar to the NSS 60thround and NSS 62ndround surveys on employment and unemploymentin which a separate schedule on employment and unemployment was canvassed in the annualrounds. The facsimile of Schedule 10.2 used in the NSS 64thround is given in Appendix C.1.2.2 Items of enquiry: In Schedule 10.2 of NSS 64thround (July 2007 June 2008)information was collected regarding the employment-unemployment characteristics andmigration particulars.1.2.2.1 NSSO collected data on employment-unemployment characteristics, based on which,estimates of employment and unemployment, measured in terms of three basic approaches,viz., usual status, current weekly status and current daily status can be obtained. The referenceperiod for these approaches differ - it being 365 days preceding thedate of survey for usualstatus, 7 days preceding the date of survey for current weekly status and each day of the 7days preceding the date of survey for current daily status. Data were collected onthe activitystatus of all persons, i.e. for workers, for those seeking or available for workand also for thoseremaining out of labour force.A worker could be self-employed or enjoy regularsalaries/wages or be employed on casual wage basis.Data on this aspect, along with theindustry of work of the worker and his/her occupation, were collectedduring this survey.Inorder to reveal the multi-dimensional features of the employment-unemployment situation inIndia, information on several correlates pertaining to it were also gathered. For the purpose ofcollection of information on industry of activity, National Industrial Classification (NIC), 2004and National Classification of Occupation (NCO) 2004 was used in this survey. The conceptsused to collect data on employment-unemployment are similar to those used in the usualquinquennial rounds.1.2.2.2In the present survey, migration particulars of the households and the householdmembers were also collected through Schedule 10.2 (Employment & Unemployment andMigration Particulars). Regarding households which have migrated to the place ofenumerationduring the last 365 days, particulars such as location of last usualresidence, pattern ofmigration and reason for migration were collected. Particulars of out-migrants who migratedout to other village/ town, from the household, any time in the past, such as present place ofresidence, reason for migration, period since leaving the household, whether presently engagedin any economic activity, whether sent remittances, number of times and amount of remittancessent during last 365 days to the households by such former members who had migrated outwere collected. Information on the use of remittances received by thehouseholds during last365 days from the members who migrated out any time in the past wasalso collected. FromChapter OneIntroductionNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007June, 20083each of the sample migrants, information on reason for migration, period elapsed sincemigration, location of last usual place of residence, usual activity pursued at the time ofmigration, whether a return migrant, etc., was collected. In this survey, to assess the shortduration movements of the people of India, for the household members who hadstayed awayfor employment or in search of employment for a period of 30 days to 6 months,informationon number of spells of duration of 15 days or more, destination for longest spell and industry ofwork, if worked, were collected.1.2.3 Geographical Coverage: The survey covered the whole of the Indian Union except (i)Leh (Ladakh) and Kargil districts of Jammu & Kashmir (for central sample), (ii) interiorvillages of Nagaland situated beyond five kilometres of the bus routeand (iii) villages inAndaman and Nicobar Islands which remain inaccessible throughout the year.1.3 The survey outline1.3.1. Method of data collection: The survey used the recalled-based interview method using aschedule for data collection from a sample of randomly selected households.The sampledesign on the basis of which the selection of households was made isstated in brief in thefollowing sub-section.1.3.2 Period of survey and work programme: The fieldwork of 64thround of NSSO startedfrom 1stJuly, 2007 and continued till 30thJune, 2008. As usual, the survey period of this roundwas divided into four sub-rounds, each with a duration of three months, the 1stsub-roundperiod ranging from July to September, 2007, the 2ndsub-round period from October, 2007 toDecember, 2007, 3rdsub-round from January, 2008 to March, 2008 and 4thsub-round fromApril, 2008 to June, 2008. An equal number of sample villages/blocks(FSUs), as far aspossible, were allotted for survey in each of these four sub-rounds.1.4 Sampling design1.4.1 An outline of the sampling design: A stratified multi-stage design was adopted for the64thround survey. The first stage units (FSU) were the 2001 census villages (Panchayat wardsin case of Kerala) in the rural sector and Urban Frame Survey (UFS)blocks in the urbansector. However, for the newly declared towns and out growths (OGs) in Census 2001 forwhich UFS were not done, each individual town/ OG were considered as an FSU. Theultimatestage units (USU) were the households in both the sectors. In case of large FSUs, i.e. villages/towns/ blocks requiring hamlet-group (hg)/ sub-block (sb) formation, oneintermediate stagewas the selection of two hgs/ sbs from each FSU. Details of the sample design and estimationprocedure is given in Appendix B.1.4.2 Sample Size first stage units:At the all-India level, 12,688FSUs (7,984 villages and4,704 urban blocks) was allocated for survey. The total number of sample FSUs was allocatedto the States and UTs in proportion to population as per Population Census 2001 subject to aminimum sample allocation to each State/ UT. While doing so, the resource availability interms of number of field investigators was kept in view. The State/ UT level sample size wasallocated between rural and urban sectors in proportion to population as per Census 2001 with1.5 weightage to urban sector subject to the restriction that urban sample sizefor bigger stateslike Maharashtra, Tamil Nadu, etc., did not exceed the rural sample size. A minimum of 8FSUs were allocated to each state/ UT, separately, for rural and urban areas. Further, the Statelevel allocation for both rural and urban sectors were adjusted marginally in a few cases toensure that each stratum got a minimum allocation of 4 FSUs. Within each sector of a State/U.T., the respective sample size was allocated to the different strata in proportion to the stratumChapter OneIntroductionNSS Report No. 531: Employment and Unemployment Situation in India: July, 2007June, 20084population as per census 2001. Allocations at stratum level were adjusted to a multiple of 4with a minimum sample size of 4. Out of these 12,688 FSUs allotted for survey, 12,589 FSUscould be surveyed 7,921 in rural and 4,668 in urban. Note that in the 64thround, a sample of13,600 FSUs (8,304 villages and 5,296 urban blocks) was also selected for surveyby the stateagencies (State sample) at the all-India level.1.4.3. Sample size second stage units: For Schedule 10.2, a sample of10 households wasplanned for survey from each selected village and urban block. In the Central sample, 1,25,578households were actually surveyed 79,091 in rural areas and 46,487 in urban areas.Asregards the actual number of persons surveyed, it was 3,74,294 in the rural sector and 1,97,960in the urban sector.1.5 Contents of the Report1.5.1 All the estimates presented in this report are based on the Central sampledata only. Thisreport deals, in some details, with the employment-unemployment estimates measured in termsof the three basic approaches of usual status, current weekly status and currentdaily status andtheir patterns along with their correlates. It also covers some aspects of underemployment. Thereport gives the results generated at all-India level and some important results for differentStates/ Union Territories.1.5.2 As stated earlier, this report deals with various estimates onemployment andunemployment along with their correlates as obtained from data collected on relevant items forthe entire round. Consequently, all discussions in this report are limited to only suchitems/concepts, based on which estimates have been generated. A detailed explanation of theseis given in the next chapter entitled Concepts and Definitions.1.5.3 This report contains three chapters, including the present introductory chapter, and fourappendices. Chapter Two states in detail the concepts and definitionsof terms used in thesurvey in connection with the various items covered in this report. Chapter Three discusses themain findings of the survey. While the detailed tables based on which this report is brought outare presented in the Appendix A, the sample design and the estimationprocedure is given inAppendix B. The facsimile of the schedule is given in Appendix C. InAppendix D, theProjected Population as on 1st March 2007 and 1st March 2008 supplied by RGIOffice havebeen presented along with those projected for 1st January 2008 usingcompound rate ofgrowth. The projections have been given for, male and female, separately, for rural and urbanfor each State/U.T.1.6 Plan for release of results1.6.1 It has been planned to bring out two reports on the basis ofdata collected in Schedule10.2 (Employment & Unemployment and Migration particulars) of NSS 64th. The presentreport - first in the series of two reports - deals in some detail,with the employmentunemployment estimates measured in terms of the three basic approaches ofusual status(us),current weekly status (cws) and current daily status (cds) and their patterns along with theircorrelates.It also covers some aspects of underemployment.The report gives the resultsgenerated at all-India level and some important results for different states/union territories. Theother report planned to be released is Migration in India: 2007-08, in which various aspects ofhousehold migration, features of out-migrants, receipt and use of remittances by thehouseholds, migration particulars of the household members, etc., have been discussed.Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 20085Chapter TwoConcepts and Definitions2.0 The concepts and definitions of some important terms used in thesurvey and relevant tothis report are explained in the following paragraphs.2.1 Household: A group of persons who normally lived together and took food from acommon kitchen constituted a household.The adverb normally means thattemporaryvisitors and guests (whose total period of stay in the household was expected tobe less than 6months) were excluded but temporary stay-aways (whose total period ofabsence from thehousehold was expected to be less than 6 months) were included.Thusa child residing in ahostel for studies was excluded from the household of his/her parents, but a resident domesticservant or paying guest (but not just a tenant in the house) was included in theemployers/hosts household.Living together was given more importance thansharingfood from a common kitchen in drawing the boundaries of a household in case the two criteriawere in conflict.However, in the special case of a person takingfood with his family butsleeping elsewhere (say, in a shop or a different house) due to shortage of space, the householdformed by such a persons family members was taken to include the person also. Each inmateof a hotel, mess, boarding-lodging house, hostel, etc., was consideredto be a single-memberhousehold except that a family living in a hotel (say) was considered one household only. Thesame principle was applicable for the residential staff of such establishments. The size of ahousehold is the total number of persons in the household.2.2 Age (years): The age in completed years, as on the date of survey, of the householdmembers were recorded.2.3 Household type:The household types were assigned on the basis ofthe sources of thehousehold s income during the last 365 days preceding the date of survey.For this purpose,only the household s income from economic activities was considered. The incomeof servantsand paying guests was not taken as the income of the household. Household typeshave beenarranged as follows:For rural areas, household types (codes are given in brackets) were as follows:self-employed in:agriculture (4),non-agriculture (1),rural labour:agricultural labour (2),other labour (3),residual other households (9).For urban areas, the household types (codes are given in brackets) were as follows:self-employed (1),regular wage/salary earning (2),casual labour (3),residual other households (9) .Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200862.3.1 Procedure for assigning household type codes in rural sector: For a ruralhousehold, ifa single source (among the five sources of income listed in precedingparagraph) contributed50% or more of the household s income from economic activities during the last 365 days, thetype code (1, 2, 3, 4 or 9) corresponding to that source was assigned.For a household to be classified as agricultural labour or self-employed in agriculture (code2 or 4) its income from that source must be 50% or more of its total income. Ifthere is no suchsource yielding 50% or more of the household s total income, code 1,3 or 9 was givenaccording to the following procedure:To be classified as self-employed in non-agriculture (code 1), the household s income from thatsource must be greater than its income from rural labour (all wage-paid manual labour) as wellas that from all other economic activities put together (a three-way division isto be consideredhere).A household not getting code 1, 2 or 4 is to be classified as other labour (code3) if its incomefrom rural labour (all wage-paid manual labour) was greater than that from self-employmentas well as that from other economic activities (again a three-way division). All otherhouseholds were given type code 9.2.3.2 For urban areas the different urban household type codes correspond tofour sources ofhousehold income, unlike the rural sector where five sources were considered. An urbanhousehold was assigned the type code 1, 2, 3 or 9 corresponding to the major source of itsincome from economic activities during the last 365 days. For a household, whichdid not haveany income from economic activities, type code 9 (residual other households) wasassigned.2.4 Monthly per capita consumer expenditure (MPCE): For a household, this is the totalconsumer expenditure over all items divided by the household size andexpressed on a permonth (30 days) basis. A persons MPCE is understood as that of the household to which he orshe belongs.2.4.1 It may be noted that some of the employment and unemployment characteristics, in thisreport, have been studied with the level of living, of the household members. Thus, thedistribution of population by income level is considered as a useful backgroundinformationfor the study of employment and unemployment. As it is difficult to collect reliable incomedata, the NSSO, collects data on consumption expenditure in its surveys. In thepresent surveyon Employment & Unemployment and Migration Particulars (Schedule 10.2),data onconsumption expenditure was collected through a separate work-sheet which was integratedwith Schedule 10.2 (see Appendix C). The work-sheet is an abridged version of the detailedschedule used for collecting information of household consumer expenditure in the consumerexpenditure survey. The estimate of MPCE derived based on worksheet may not converge tothe corresponding estimates derived through main enquiry schedules of household consumerexpenditure (Schedule 1.0). The abridged work-sheet was used to reducethe respondentfatigue. Based on the abridged work-sheet, monthly per capita consumerexpenditure wasworked out for each sample household, which is expected to serve as a close proxy for incomeand facilitates ordering the households and persons thereof in the hierarchy of their level ofliving.2.4.1.1 Decile classes of MPCE: The first decile of the distribution of MPCE over thepopulation of any region or domain is the level of MPCE below which10 per cent of thepopulation lie, the second decile, the level below which 20 per cent of the population lie, andso on. Thus, the population can be divided into 10 decile classes of MPCE as follows: MPCEup to the 1stdecile, from 1stdecile to the 2nddecile, from the 2nddecile to the 3rddecile, and soon. Estimates of employment and unemployment parameters for each of the decile class help toChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 20087portray the variation of such variables with variation in MPCE. In this round, decile classes areused in all-India tables and are formed separately for the rural and urban sector of India.2.4.1.2 Quintile classes of MPCE:The population of any region or domain can be dividedinto five quintile classes of MPCE, where the 1stquintile of the distribution of MPCE meansthe level of MPCE below 20 per cent of the population lie, the second quintile,the level belowwhich 40 per cent of the population lie, and so on. In this roundquintiles are estimatedseparately for the distribution of MPCE in the rural and urban sector of each State/U.T.2.4.1.3 Procedure for collecting monthly per capita consumer expenditure(MPCE): Aworksheet was used for collection of information on household consumerexpenditure inSchedule 10.2 to get a proxy for total household consumer expenditure, The approximate valueof consumer expenditure obtained through the worksheet has been used for studyingemployment and unemployment characteristics of the household members. Theworksheetcontained 19 different components of household consumer expenditure. Depending upon thetype of item, either of the two reference periods viz,. 30 days and 365 days, was used to recordconsumption of different groups of items. Conceptual framework and approach to recordhousehold consumer expenditure through the worksheet is similar to theone adopted fordetailed household consumer surveys carried out by NSSO.2.5 General educational level: A person was considered as literate if he/shecould both readand write a simple message with understanding in at least one language. For allthe individualswho were found to be literate, the general level of education was collected in terms of highestlevel of education successfully completed. Highest level of education successfully completedby each member of the household was decided by considering his/ herall general/ technical/vocational educational level and was recorded in terms of 13 categories viz. (i)not literate, (ii)literate without any schooling, (iii) literate without formal schooling:(a) Non-formalEducation Courses (NFEC)/ Alternative Innovative Education Programme (AIEP), (b) TotalLiteracy Campaign (TLC)/ Adult Literacy Centres (AEC), (c) others; literate with formalschooling including EGS (iv) below primary, (v) primary, (vi) upper primary/middle, (vii)secondary, (viii) higher secondary, (ix)diploma/certificate course, (x) graduate, and (xi)postgraduate and above. The criterion for deciding primary, upper primary/ middle, secondary,etc., levels were the same that had been followed in the concerned states/unionterritories. Thecategory diploma or certificate course meant diploma or certificate courses in generaleducation, technical education or vocational education, which is belowgraduation level.Diploma or certificate courses in general education, technical educationor vocationaleducation, which is equivalent to graduation level, was considered under the categorygraduate. Similarly, diploma or certificate courses in general education,technical educationor vocational education, which is equivalent to post-graduation level and above wereconsidered under the category post-graduate and above. It may be noted that the persons withgeneral education level secondary and above have been referred to as educated persons inthis report.2.6 Technical educational level: The highest level of technical education successfullycompleted by each member of the household was recorded in terms of 6 categoriesviz. (i) notechnical education, (ii) technical degree (graduate level) in agriculture/ engineering/technology/ IT/medicine/management, (iii) technical degree (postgraduate and above level) inagriculture/ engineering/ technology/ IT/ medicine/ management, etc., (iv) diploma orcertificate (below graduate level) in agriculture/ engineering/technology/IT/ medicine/management, etc., (v) diploma or certificate (graduate level) in agriculture/ engineering/technology/IT/ medicine/ management, etc., and (vi) diploma or certificate (postgraduate andabove level) in agriculture/ engineering/ technology/IT/ medicine/ management,etc. Technicaldiploma or certificate in other subjects included diploma or certificatein management,applied arts, etc.Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200882.7 Public works: Public works were those activities which were sponsored by Governmentor Local Bodies, and which covered local area development works like construction of roads,dams, bunds, digging of ponds, etc., as relief measures, or as an outcome of employmentgeneration schemes under the poverty alleviation programme such as Mahatma GandhiNational Rural Employment Guarantee (MGNREG) public works, Sampoorna GrameenRozgar Yojana (SGRY), National Food for Work Programme (NFFWP), etc. The coverage ofschemes under public works was restricted to those schemes through which the Governmentgenerated wage employment under poverty alleviation programme, or reliefmeasures. Thetypes of works that were generally undertaken through these schemes, were watersheddevelopment, drought proofing, land levelling, flood control, laying pipes or cables, sanitation,water harvesting, irrigation canal, development of orchard, road construction, buildingconstruction / repair, running crche, etc. To distinguish between public works andworks notclassifiable as public works, some broad characteristics of public work were identified, viz.the primary objective is generation of wage employment and poverty alleviation,and creationof community asset as an outcome in achieving those main objectives. It is to benoted that theexisting activity status code 41 (casual wage labour in public works) was split into two codesfor assigning activity status codes as per current daily activity status and current weeklyactivity status, as follows:(i) worked as casual wage labour in public works other than Mahatma Gandhi NationalRural Employment Guarantee (MGNREG) public works 41(ii) worked as casual wage labour in Mahatma Gandhi National Rural EmploymentGuarantee (MGNREG) public works 42However, in the usual activity status, code 41 was used for casual wage labour in publicworks, which included all types of public works and code 42 was notapplicable in the usualactivity status.2.8 Economic activity:The entire spectrum of human activity falls into two categories economic activities and non-economic activities. Any activity resulting in production of goodsand services that add value to national product was considered as an economic activity for theemployment and unemployment survey. Such activities included productionof all goods andservices for market (i.e. for pay or profit) including those of government services, and, theproduction of primary commodities for own consumption and own account productionof fixedassets.2.8.1 The full spectrum of economic activities as defined in the UNsystem of NationalAccounts (1993) was not covered in the definition adopted for the NSS64thround survey ofEmployment and Unemployment. Production of any good for own consumption is consideredas economic activity by UN System of National Accounts (UNSNA 1993)but production ofonly primary goods for own consumption was considered as economic activity by NSSO.While the former considers activities like own account processing of primary products aseconomic activities, in the NSS surveys, processing of primary products for ownconsumptionwas not considered as economic activity.2.8.2 The term economic activity as defined in the employment and unemploymentsurvey ofNSS 64thround, therefore, included:(i) all the market activities performed for pay or profit which result in production of goodsand services for exchange.(ii) of the non-market activities,Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 20089(a) all the activities relating to the primary sector (i.e. industryDivisions 01 to 14 ofNIC-2004) which result in production (including free collection of uncultivated crops,forestry, firewood, hunting, fishing, mining, quarrying, etc.) of primary goods for ownconsumptionand(b) activities relating to the own-account production of fixed assets,which includeproduction of fixed assets includes construction of own houses, roads,wells, etc., andof machinery, tools, etc., for household enterprise and also construction of any privateor community facilities free of charge. A person may be engaged in own accountconstruction in the capacity of either a labourer or a supervisor.As per the practice followed in earlier rounds, certain activities like prostitution, begging, etc.,which though fetched earnings, were not considered as economic activities. Activity status of aperson was judged irrespective of the situation whether such activity was carried out illegallyin the form of smuggling or not.2.9 Activity status: It is the activity situation in which a person was found during the referenceperiod with regard to the person s participation in economic and non-economic activities.According to this, a person could be in one or a combination of thefollowing three broadactivity statuses during a reference period:(i) working or being engaged in economic activity (work) as defined above,(ii) being not engaged in economic activity (work) but either making tangible efforts toseek work or being available for work if work is available and(iii) being not engaged in any economic activity (work) and also not available for work .Broad activity statuses mentioned in (i) and (ii) above are associatedwith being in labourforce and the last with not being in the labour force . Within thelabour force, broad activitystatus (i) and (ii) were associated with employment and unemployment, respectively.2.9.1 Identification of each individual in terms of a unique activity status could pose a problemwhen more than one of the three broad activity statuses listed abovewere concurrentlyobtained for a person. In such an eventuality, the identification uniquely under any one of thethree broad activity statuses was done by adopting either the major timeor priority criterion.The former was used for classification of persons according to the usual activity statusapproach and the latter for classification of persons according to thecurrent activity statusapproach.Each of the three broad activity statuses was further subdivided into severaldetailed activity categories. If a person categorised as engaged in economic activity byadopting one of the two criteria mentioned above was found to be pursuing more than oneeconomic activity during the reference period, the appropriate detailedactivity status coderelated to that activity in which relatively more time had been spent. A similarprocedure wasadopted for assigning detailed activity code for persons categorised asengaged in noneconomic activity and pursuing more than one non-economic activities.2.9.2 The detailed activity statuses under each of the three broad activity statuses (viz.employed, unemployed and not in labour force) and the corresponding codes used in the surveyare given below:Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200810codedescriptionworking (or employed)self-employed11worked (self-employed) in household enterprises as own-account worker12worked (self-employed) in household enterprises as an employer21worked (self-employed) in household enterprises as helperregular wage/ salaried employee31worked as regular wage/salaried employeecasual labour41worked as casual wage labour in public works otherthan Mahatma Gandhi NREGpublic works42worked as casual wage labour in Mahatma Gandhi NREG public works51worked as casual wage labour in other types of works61did not work owing to sickness though there was work in household enterprise62did not work owing to other reasons though there was work in household enterprise71did not work owing to sickness but had regular salaried/wage employment72did not work owing to other reasons but had regular salaried/wage employmentnot working but seeking/available for work (or unemployed)81sought work or did not seek but was available for work (for usual status approach)81sought work (for current weekly status approach)82 did not seek but was available for work (for current weekly status approach)neither working nor available for work (or not in labour force)91attended educational institutions92attended to domestic duties only93attended to domestic duties and was also engaged in free collection ofgoods(vegetables, roots, firewood, cattle feed, etc.), sewing, tailoring, weaving, etc. forhousehold use94rentiers, pensioners, remittance recipients, etc.95not able to work owing to disability97 others (including beggars, prostitutes, etc.)98 did not work owing to sickness (for casual workers only)99children of age 0-4 yearsIt may be noted that codes 61, 62, 71, 72, 82 and 98 were applicable for currentweekly statusand current daily status approaches only. Moreover, activity status code 41 in the usual status isused for casual wage labour in all types of public works, whereas in the currentactivity status,code 41 is for casual wage labour in public works other than MGNREG public worksand code42 is for casual wage labour in MGNREG public works.2.10 Workers (or employed): Persons who were engaged in any economic activity or who,despite their attachment to economic activity, abstained from work for reason ofillness, injuryor other physical disability, bad weather, festivals, social or religious functions or othercontingencies necessitating temporary absence from work, constituted workers. Unpaid helperswho assisted in the operation of an economic activity in the household farm or non-farmactivities were also considered as workers. Relevant activity status codes within 11 to 72 wereassigned for workers. Workers were further categorized as self-employed(relevant activityChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 -June, 200811status codes: 11, 12, 21, 61, 62), regular salaried/wage employee (relevant activity statuscodes: 31, 71, 72), and casual wage labour (relevant activity status codes: 41,42 and 51).2.11Seeking or available for work (or unemployed): Persons who, owing to lack of work,had not worked but either sought work through employment exchanges, intermediaries, friendsor relatives or by making applications to prospective employers or expressed their willingnessor availability for work under the prevailing conditions of work andremuneration, wereconsidered as those seeking or available for work (or unemployed). Activity status codes 81or 82 were assigned for unemployed.2.12 Labour force: Persons who were either working (or employed) or seekingor availablefor work (or unemployed) constituted the labour force. Persons with activity status codes 11 82 constituted the labour force.2.13Not in labour force:Persons who were neitherworking norseeking or available forwork for various reasons during the reference period were considered as not in labour force .Persons under this category are students, those engaged in domestic duties, rentiers, pensioners,recipients of remittances, those living on alms, infirm or disabled persons, tooyoung persons,prostitutes, etc. and casual labourers not working due to sickness. Activity status codes 91-95,97 and 98 were assigned for persons belonging to category not in labour force .2.14 Self-employed: Persons who operated their own farm or non-farm enterprises or wereengaged independently in a profession or trade on own-account or with one ora few partnerswere deemed to be self-employed in household enterprises. The essentialfeature of the selfemployed is that they have autonomy (decide how, where and when to produce) andeconomicindependence (in respect of choice of market, scale of operation and finance) for carrying outtheir operation. The remuneration of the self-employed consists of a non-separablecombination of two parts: a reward for their labour and profit of their enterprise. The combinedremuneration is wholly determined by the revenue from sales after netting out value ofpurchased inputs used in production.2.14.1 Categories of self-employed persons: Self-employed persons were categorised asfollows:(i) own-account workers: those self-employed persons who operated their enterprises ontheir own account or with one or a few partners and who, during the reference period, byand large, ran their enterprise without hiring any labour. They could, however,have hadunpaid helpers to assist them in the activity of the enterprise;(ii) employers: those self-employed persons who worked on their own account or with oneor a few partners and, who, by and large, ran their enterprise by hiring labour;and(iii) helpers in household enterprise: those self-employed persons(mostly familymembers) who were engaged in their household enterprises, working full or part time anddid not receive any regular salary or wages in return for the workperformed. They didnot run the household enterprise on their own but assisted the related person living in thesame household in running the household enterprise.2.15 Regular wage/salaried employee:These were persons who worked inothers farm ornon-farm enterprises (both household and non-household) and, in return,received salary orwages on a regular basis (i.e. not on the basis of daily or periodic renewal of work contract).This category included not only persons getting time wage but also persons receiving piecewage or salary and paid apprentices, both full time and part-time.2.16 Casual wage labourer: A person who was casually engaged in others farm or non-farmenterprises (both household and non-household) and, in return, received wages according to theterms of the daily or periodic work contract, was a casual wage labourer.Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 2008122.17 Different approaches followed to determine activity status: The persons surveyed wereclassified into various activity categories on the basis of the activities pursued by them duringcertain specified reference periods. There were three reference periodsfor this survey. Theseare: (i) one year (ii) one week and (iii) each day of the reference week. Based on these threeperiods, three different measures of activity status are arrived at. These are termed respectivelyas usual status, current weekly status and current daily status. As such the procedures adoptedto arrive at the usual status and current daily status are elucidated below.2.17.1 Usual principal activity status: The usual activity status relates to the activity status ofa person during the reference period of 365 days preceding the dateof survey. The activitystatus on which a person spent relatively longer time (i.e. major time criterion) during the 365days preceding the date of survey is considered as the usual principal activity status of theperson. To decide the usual principal activity of a person, first atwo stage dichotomousclassification was followed for determining the broad usual principal activity status (employedor unemployed or not in labour force) of the person. At the first stage, persons were firstcategorised as those in the labour force (either employed or unemployed) and those not in thelabour force depending on the major time spent during the 365 days preceding the date ofsurvey. Persons thus adjudged as not belonging to the labour force were assigned the broadactivity status neither working nor available for work (not in the labour force). At the secondstage, for persons belonging to the labour force, the broad activitystatus of either working(employed) or not working but seeking and/or available for work (unemployed) wasascertained based on the same criterion viz. relatively longer time spent in accordance witheither of the two broad statuses within the labour force during the 365 days preceding the dateof survey.Within the broad activity status so determined, the detailed activity status of aperson pursuing more than one such activity was determined once againon the basis of therelatively longer time spent on such activities.In terms of activity status codes, codes 11-51were assigned to persons classified as workers and codes 91-97 to those not in the labour force.In the usual status approach, a single code 81 was assigned to persons seeking or available forwork (unemployed persons) while two separate codes 81 (sought work) and82 (did not seekbut was available for work) were assigned to unemployed persons according to current weeklystatus and current daily status approach.2.17.2 Usual subsidiary economic activity status: A person whose usual principal status wasdetermined on the basis of the major time criterion could have pursued some economic activityfor a shorter time throughout the reference year of 365 days preceding the dateof survey or fora minor period, which is not less than 30 days, during the reference year. The status in whichsuch economic activity was pursued was the subsidiary economic activity status of that person.Activity status codes 11-51 only were used for the subsidiary economic activityperformed by aperson. It may be noted that engagement in work in subsidiary capacity may arise out of thetwo following situations:(i) a person may be engaged in a relatively longer period during the last 365 days in someeconomic (non-economic) activity and for a relatively minor period, which isnot lessthan 30 days (not necessarily for a continuous period), in another economic activity(any economic activity). The economic activity, which was pursued fora relativelyminor period but not simultaneously with principal activity, was considered ashis/hersubsidiary economic activity.(ii) a person may be pursuing an economic activity (non-economic activity) almostthroughout the year in the principal status and also simultaneously pursuing anothereconomic activity (any economic activity) for a relatively shorter time ina subsidiarycapacity. The economic activity, which was pursued for a relatively shortertime, wasconsidered as his/her subsidiary economic activity.Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 2008132.17.3 Usual activity status considering principal and subsidiary status takentogether: Theusual status, determined on the basis of the usual principal activityand usual subsidiaryeconomic activity of a person taken together, is considered as the usual activity status of theperson and is written as usual status (ps+ss). According to the usual status (ps+ss), workers arethose who perform some work activity either in the principal status or in the subsidiary status.Thus, a person who is not a worker in the usual principal status isconsidered as workeraccording to the usual status (ps+ss), if the person pursues some subsidiary economic activityfor 30 days or more during 365 days preceding the date of survey.2.17.4 Current weekly activity status: The current weekly activity status of a person is theactivity status obtaining for a person during a reference period of 7 days preceding the date ofsurvey. It is decided on the basis of a certain priority cum major time criterion.2.17.4.1 According to the priority criterion, the statusworking gets priority over the statusnot working but seeking or available for work that, in turn, gets priority over the statusneither working nor available for work. A person was considered working (or employed) ifhe/she, while pursuing any economic activity, had worked for at least one hour on at least oneday during the 7 days preceding the date of survey. A person was considered seeking oravailable for work (or unemployed) if, during the reference week, no economic activity waspursued by the person but he/she made efforts to get work or had been availablefor work anytime during the reference week though not actively seeking work in the belief that no work wasavailable. A person who had neither worked nor was available for workany time during thereference week was considered as engaged in non-economic activities (or not in labour force).2.17.4.2 After deciding the broad current weekly activity status of aperson on the basis ofpriority criterion, the detailed current activity status was then decided on the basis of majortime criterion if that person pursued multiple economic activities. The current weekly activitystatus of a person could be any of the valid codes within 11 to 98.Of these codes, 11 to 72pertained to workers, 81 to 82 for unemployed and 91 to 98 for persons not in the labour force.2.17.5 Current daily activity status The activity pattern of the population, particularly in theinformal sector, is such that during a week, and sometimes, even during a day, aperson couldpursue more than one activity.Moreover, many people could even undertake both economicand non-economic activities on the same day of a reference week. Thecurrent daily activitystatus for a person was determined on the basis of his/her activitystatus on each day of thereference week using a priority-cum-major time criterion (day to day labour timedisposition).Time disposition was recorded for every member of the sample households.This involvedrecording of different activities pursued by the members along with thetime intensity inquantitative terms for each day of the reference week. The different activitieswere identifiedand recorded in terms of activity status andindustry codes for persons in urban areas andactivity status , industry and operation codes for persons in rural areas.The description (andcodes used) of current daily activity statuses is the same as thoseof current weekly activitystatus. The terms industry and operation are explained later.The following points wereconsidered for assigning the time intensity and determining the current daily status of a person:i) Each day of the reference week was looked upon as comprising either two half days ora full day for assigning the activity status. For recording time disposition foractivitiespursued by a person in a day, an intensity of 1.0 was given against anactivity that wasdone for full day and an intensity of 0.5 against the activity which wasdone for halfday.ii) A person was considered working (employed) for the full day if he/she had worked for4 hours or more during the day.Chapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200814iii) If a person was engaged in more than one of the economic activities for 4 hours or moreon a day, he/she was assigned two out of the various economic activities on which he/shedevoted relatively longer time on the reference day. In such cases, an intensityof 0.5 wasgiven for each of these two economic activities.iv) If the person had worked for 1 hour or more but less than 4 hours, he/she was consideredworking (employed) for half-day and seeking or available for work (unemployed) orneither seeking nor available for work (not in labour force) for the other half ofthe daydepending on whether he was seeking/available for work or not.v) If a person was not engaged in any work even for 1 hour on a daybut wasseeking/available for work for 4 hours or more, he was considered unemployed for theentire day. But if he was seeking/available for work for more than 1 hour and less than4 hours only, he was considered unemployed for half day and not in labour force forthe other half of the day.vi) A person who neither had any work to do nor was available for work even for halfaday was considered not in labour force for the entire day and was assigned one ortwoof the detailed non-economic activity statuses depending upon the activities pursuedduring the reference day.2.17.6 The current weekly status of a person is derived from the intensities assigned for thedaily activities performed by a person during the 7 days of the reference week.2.18 Industry and occupation of the work activity: For the employed persons, to record theindustry of work, 5-digit classification of NIC-2004 was used and torecord the type ofoccupation, 3-digit classification of NCO-2004 was used. To identify certain category ofworkers under Division 95 (Private households with employed persons) ofNIC-2004, eightadditional codes were used in the survey viz., housemaid /servant (95001), cook (95002),gardener (95003), gatekeeper/chowkidar/watchman (95004), governess/baby-sitter (95005),tutor (95006), driver (95007) and others (95009). Industry Divisions 96 and 97 ofNIC-2004were not used for the purpose of collection of information on industry of activity. The entireactivities described under Division 97 are not under the production boundary ofIndian Systemof National Accounts (ISNA) and are not also considered as economic activities in the NSSsurvey. A part of the activities under Division 96 (viz., hunting and gathering,farming and theproduction of shelter), which is within the production boundary of ISNA, is alsoconsidered aseconomic activities in NSS surveys and the industry of these undifferentiated activities werejudged in the usual manner as done now, by considering the industry in which major time wasspent. Thus, this part of activities got classified against the respective industries under divisions01-14 relating to the primary sector or 45 relating to construction.The rest of Division 96 isoutside the production boundary of ISNA and was not considered as economic activity for theNSS survey. Broad structure of NIC-2004 (Sections and Divisions) have been presented at theend of this Chapter in Annexure I.2.19Manual work: A job essentially involving physical labour was considered as manualwork. However, jobs essentially involving physical labour but also requiring a certain level ofgeneral, professional, scientific or technical education were not termedas manual work . Onthe other hand, jobs not involving much of physical labour and at the same time not requiringmuch educational (general, scientific, technical or otherwise) backgroundwere treated asmanual work . Thus, engineers, doctors, dentists, midwives, etc., were not considered manualworkers even though their jobs involve some amount of physical labour.But, peons,chowkidars, watchman, etc., were considered manual workers even thoughtheir work mightnot involve much physical labour. A few examples of manual workers are cooks, waiters,building caretakers, sweepers, cleaners and related workers, launderers,dry cleaners andpressers, hair dressers, barbers, beauticians, watchmen, gate keepers, agricultural labourers,plantation labourers and related workersChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 2008152.20 Rural labour: Manual labour working in agricultural and /or non-agricultural occupationsin return for wages paid either in cash or in kind (excluding exchange labour),either of casualor regular basis, and living in rural areas, was taken as rural labour.2.21 Wage paid-manual labour: A person who did manual work in return for wagesin cash orkind or partly in cash and partly in kind (excluding exchange labour) was considered as a wagepaid manual labour. Salaries were also counted as wages. A person who was self-employed inmanual work was not treated as a wage paid manual labour.2.22 Agricultural labour: A person was considered as engaged as agricultural labour, if he/shefollowed one or more of the following agricultural occupations in the capacity of a wage paidmanual labour, whether paid in cash or kind or both:(i) farming,(ii) dairy farming,(iii) production of any horticultural commodity,(iv) raising of livestock, bees or poultry,(v) any practice performed on a farm as incidental to or in conjunction with farm operations(including forestry and timbering) and the preparation for market and delivery to storage orto market or to carriage for transportation to market of farm produce. Further, carriage fortransportation referred only to the first stage of the transport from farm to the first place ofdisposal.Working in fisheries was excluded from agricultural labour.2.23 Wage and salary earnings: Information on wage and salary earnings was collectedseparately for each of the wage/salaried work recorded for a person ina day. Here, earningsreferred to the wage/salary income (and not total earnings taking into consideration of all otheractivities done) received/receivable for the wage/salaried work done during thereference weekby a wage/salaried employee and casual labourer. The wage/ salary received or receivable maybe in cash or kind or partly in cash and partly in kind. While recording the earnings followingconventions were followed.i) The wages in kind were evaluated at the current retail price.ii) Bonus and perquisites such as free accommodation, reimbursement ofexpenditurefor medical treatment, free telephones, etc. evaluated at the cost of the employer orat retail prices and duly apportioned for the reference week were also included inearnings.iii) Amount receivable as over-timefor the additional work done beyond normalworking time was excluded.It may be noted that in the survey, at most two activities could berecorded for a person in aday. Therefore, it is possible that a person might have carried outtwo or more wage/salariedactivities in a day, but only one activity or two activities at the most, depending upon the timespent on those activities, was recorded. In that case, the wage/salaryincome only from thatactivity(s) was collected and recorded separately, and not the total income ofthe person fromall the activities done for the entire day.2.24 Procedure followed for collecting employment and unemployment particulars indifferent NSS rounds: In the annual rounds from 45th(July 1989-June 1990) to 59th(Januaryto December 2003), only activity status and industry of work accordingto usual principalstatus, subsidiary status and current weekly status approach were collected through a fewcolumns of the demographic block of the Consumer Expenditure Schedule(Schedule 1.0).Particulars of employment and unemployment according to the usual principal status and usualsubsidiary status were collected in the annual rounds by following a similar approach as in thequinquennial rounds. In the quinquennial rounds, particulars of currentdaily status of thehousehold members are collected and current weekly status is derived from them, whereas inthe annual rounds, current weekly status has been obtained through a directquery. In the 60thChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200816round (January-June 2004), a separate schedule on employment and unemployment wascanvassed for the first time in an annual round and particulars on employment andunemployment was colleted in the same manner as that of the quinquennial rounds. In NSS62ndround (July 2005 - June 2006) also a separate schedule, similar to the one canvassedduring NSS 60thround, on employment and unemployment was canvassed and in this roundalso particulars on employment and unemployment was colleted in the same manneras that ofthe quinquennial rounds. In the NSS 64thround (July 2007-June 2008) a separate schedule wasalso used to collect data on employment and unemployment. The scope of the schedule wasfurther enhanced with the inclusion information on the some particularsof the migranthouseholds, migrant household members and out-migrants. In this round also particulars onemployment and unemployment was colleted in the same manner as that of the quinquennialrounds.2.25 Labour force participation rate (LFPR): LFPR is defined as the number of persons/person-days in the labour force per 1000 persons /person-days2.26 Worker Population Ratio (WPR): WPR defined as the number of persons/person-daysemployed per 1000 persons/person-days.2.27 Proportion Unemployed (PU): It is defined as the number of persons/person-daysunemployed per 1000 persons/person-days.2.28 Unemployment Rate (UR):UR is defined as the number of persons/person-daysunemployed per 1000 persons/person-days in the labour force (which includes both theemployed and unemployed).2.28.1 Usual status adjusted UR: Unemployment rates for the reference period of 365 days,i.e., in usual principal status (ps) approximates an indicator of chronically unemployed. Someof the persons categorised as unemployed according to the usual principal activity status mightbe working in a subsidiary capacity. Therefore, another estimate of the unemployed excludingthose employed in a subsidiary capacity during the reference period can be derived. The formeris called the usually unemployed according to the principal status (ps)and the latter, theusually unemployed excluding employed in subsidiary status or usual status adjusted i.e., us(adjusted), which would conceptually be lower than the former.2.29 The architecture of key employment-unemployment indicators are given belowin tabularform:activity profile* key indicatorsactivity status(code)category of persons11, 12, 21, 31,41, 42, 51, 61,62, 71, 72workers 1. Labour Force Participation Rate (LFPR):population totalpersons unemployed of no persons employed of no . .2. Worker Population Ratio (WPR):population totalpersons employed of no.3. Proportion Unemployed (PU):population totalpersons unemployed of no.4. Unemployment Rate (UR):persons unemployed of no persons employed of nopersons unemployed of no. ..81, 82 unemployed91, 92 93, 94,95, 97, 98not in labour forceNote: *: Activity status codes, 42, 61, 62, 71, 72, 82, and 98 are used only inthe current status (inCWS and CDS) and the remaining activity status codes are used in both usual in current statusChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200817Annexure IBROAD STRUCTURE OF NIC 2004(SECTIONS & DIVISIONS)Section A: Agriculture, hunting and forestryDivision 01: Agriculture, hunting and related service activitiesDivision 02: Forestry, logging and related service activitiesSection B: FishingDivision 05: Fishing, aquaculture and service activities incidental to fishingSection C: Mining and quarryingDivision 10: Mining of coal and lignite; extraction of peatDivision 11: Extraction of crude petroleum and natural gas; service activities incidental tooil and gas extraction, excluding surveyingDivision 12: Mining of uranium and thorium oresDivision 13: Mining of metal oresDivision 14: Other mining and quarryingSection D: ManufacturingDivision 15: Manufacture of food products and beveragesDivision 16: Manufacture of tobacco productsDivision 17: Manufacture of textilesDivision 18: Manufacture of wearing apparel; dressing and dyeing of furDivision 19: Tanning and dressing of leather; manufacture of luggage, handbags,saddlery,harness and footwearDivision 20: Manufacture of wood and of products of wood and cork, except furniture;manufacture of articles of straw and plaiting materialsDivision 21: Manufacture of paper and paper productsDivision 22: Publishing, printing and reproduction of recorded mediaDivision 23: Manufacture of coke, refined petroleum products and nuclear fuelDivision 24: Manufacture of chemicals and chemical productsDivision 25: Manufacture of rubber and plastics productsDivision 26: Manufacture of other non-metallic mineral productsDivision 27: Manufacture of basic metalsDivision 28: Manufacture of fabricated metal products, except machinery and equipmentDivision 29: Manufacture of machinery and equipment n.e.c.Division 30: Manufacture of office, accounting and computing machineryDivision 31: Manufacture of electrical machinery and apparatus n.e.c.Division 32: Manufacture of radio, television and communication equipment and apparatusDivision 33: Manufacture of medical, precision and optical instruments, watchesand clocksDivision 34: Manufacture of motor vehicles, trailers and semi-trailersDivision 35: Manufacture of other transport equipmentDivision 36: Manufacture of furniture; manufacturing n.e.c.Division 37: RecyclingSection E: Electricity, gas and water supplyDivision 40: Electricity, gas, steam and hot water supplyDivision 41: Collection, purification and distribution of waterSection F: ConstructionDivision 45: ConstructionChapter TwoConcepts and DefinitionsNSS Report No. 531: Employment and Unemployment Situation in India, July, 2007 June, 200818Annexure ISection G: Wholesale and retail trade; repair of motor vehicles, motorcycles andpersonal and household goodsDivision 50: Sale, maintenance and repair of motor vehicles and motorcycles; retail sale ofautomotive fuelDivision 51: Wholesale trade and commission trade, except of motor vehicles andmotorcyclesDivision 52: Retail trade, except of motor vehicles and motorcycles; repair of personal andhousehold goodsSection H: Hotels and restaurantsDivision 55: Hotels and restaurantsSection I: Transport, storage and communicationsDivision 60: Land transport; transport via pipelinesDivision 61: Water transportDivision 62: Air transportDivision 63: Supporting and auxiliary transport activities; activities of travelagenciesDivision 64: Post and telecommunicationsSection J: Financial intermediationDivision 65: Financial intermediation, except insurance and pension fundingDivision 66: Insurance and pension funding, except compulsory social securityDivision 67: Activities auxiliary to financial intermediationSection K: Real estate, renting and business activitiesDivision 70: Real estate activitiesDivision 71: Renting of machinery and equipment without operator and of person