The real impact of demonetisation and GST on the unemployment rate in the country could be far worse than what was portrayed by the headline figures given in the National Sample Survey Office’s (NSSO's) report for 2017-18.
A Business Standard report claimed that if the current weekly status (CWS) approach of the NSSO’s periodic labour force survey (LFPS) is taken into account, the unemployment rate would be significantly higher, at 8.9 percent in 2017-18, as opposed to 6.1 percent when measured using the usual status approach.
In the CWS approach, the activity status of a person is determined on the basis of the reference period of one week, as opposed to the reference period of one year used in the usual status approach.
The CWS gives a better idea about the the impact of demonetisation and GST on jobs, a former chief statistician quoted by Business Standard said.
The NSSO report had been held back by the government and is at the centre of a controversy after two National Statistical Commission (NSC) members, including the acting chairman, resigned on Monday, 28 January.
The two had alleged that the government was preventing the release of this report despite the approval of the NSC.
The unemployment rate in India was at its highest in 2017-18 since 1972-73, the period since data about jobs is comparable, a Business Standard report had said, quoting documents they had accessed.