Shortfalls in employment surveys

What is the issue?

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