Why this matters now
These themes connect economy, society and governance, and recur in current affairs (PLFS data, MPI reports). Knowing the estimation committees and unemployment types is reliably tested.
Measuring poverty
Poverty in India has traditionally been measured by a poverty line — a minimum consumption expenditure. Key committees: Tendulkar Committee (2009, raised the line and used a broader basket) and the Rangarajan Committee (2014, a higher line). Modern measures go beyond income: the Multidimensional Poverty Index (MPI) captures deprivations in health, education and living standards.
Types of unemployment
| Type | Meaning |
|---|---|
| Structural | Mismatch between workers’ skills and available jobs |
| Cyclical | Caused by downturns in the business cycle (low demand) |
| Frictional | Temporary, between jobs or entering the workforce |
| Seasonal | Work available only in certain seasons (e.g. agriculture) |
| Disguised | More workers than needed; removing some doesn’t cut output (common in farming) |
Measuring unemployment
Unemployment is measured through the Periodic Labour Force Survey (PLFS) by the National Statistical Office. Key indicators are the Labour Force Participation Rate (LFPR), the Worker Population Ratio (WPR) and the Unemployment Rate (UR), using concepts like Usual Status and Current Weekly Status.
Tackling poverty and unemployment
Strategies include employment guarantee (MGNREGA), skilling, support for MSMEs and labour-intensive sectors, social-security schemes, financial inclusion, and broad-based growth. The aim is inclusive growth that creates productive jobs and reduces deprivation.
UPSC angle
Know the Tendulkar vs Rangarajan committees and the MPI (health/education/living standards). Master the unemployment types — especially disguised (farming) and structural (skill mismatch) — and PLFS/LFPR.
Frequently asked questions
How is poverty measured in India?
Traditionally by a poverty line (minimum consumption expenditure), set by committees like Tendulkar and Rangarajan; the Multidimensional Poverty Index (MPI) adds health, education and living-standard deprivations.
What is disguised unemployment?
A situation where more people are employed than needed, so removing some workers does not reduce output — common in Indian agriculture.
What are the main types of unemployment?
Structural, cyclical, frictional, seasonal and disguised unemployment.
How is unemployment measured in India?
Through the Periodic Labour Force Survey (PLFS), using indicators like the LFPR, WPR and unemployment rate.