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Reading: Why ought to we comply with a cautious method whereas decoding the ‘common standing’ employment measures?
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StockWaves > Economics > Why ought to we comply with a cautious method whereas decoding the ‘common standing’ employment measures?
Economics

Why ought to we comply with a cautious method whereas decoding the ‘common standing’ employment measures?

StockWaves By StockWaves Last updated: May 11, 2026 8 Min Read
Why ought to we comply with a cautious method whereas decoding the ‘common standing’ employment measures?
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In keeping with the Periodic Labour Drive Survey (PLFS) rounds, the Indian financial system witnessed a big rise in feminine work power participation charge (FWPR) over the current years, reaching 36% in 2022-23 from 22% in 2017-18.This rise is notably increased in rural areas, rising from 24% to 41%, in comparison with the city FWPR, which rose from 18% to 24% over the identical interval.Nevertheless, concluding that this enhance represents an unambiguous enchancment in girls’s labour market circumstances can be deceptive. That is partially as a consequence of these employment measures not informing on varied different features of high quality of employment, together with the extent of underemployment. These FWPR estimates are based mostly on figuring out financial participation below the ‘common principal and subsidiary standing’ or interchangeably referred to as the ‘common standing’ measure of employment.

The ‘common standing’ is essentially the most extensively reported statistical measure of employment throughout all domains. Though the current ‘common standing’ traits point out increased engagement of ladies in financial actions general, these estimates must be interpreted with warning as these measures assign the standing of being employed to  people with considerably totally different durations of financial engagements. The standard exercise standing of an individual is decided based mostly on each common principal standing and common subsidiary standing.  In keeping with the definition of common standing, an individual is taken into account employed in the event that they meet both the principal standing criterion (employed for at the least six months in a 12 months) or the subsidiary standing criterion (employed for at the least 30 days however lower than six months in a 12 months).  The subsidiary financial engagement is taken into account to outline the employment standing of an individual solely when the person isn’t employed based on the principal standing criterion. However the period of   engagement in subsidiary actions is usually considerably lower than principal employment.  The standard standing method doesn’t differentiate between principal standing and subsidiary standing staff and provides them collectively to estimate the workforce participation charges. Consequently, the same old standing measures fail to disclose the underemployment present amongst subsidiary staff with none principal engagement. Due to this fact the downside of a broad measure like common standing which incorporates the subsidiary engagement in defining employment is the shortcoming to seize the underemployment.

We perceive the danger with narrower measures like common principal standing because it undercounts the extent of actions going down within the casual and subsistence economies, that are principally seasonal in nature.  Thus the same old principal standing measure offers us a more in-depth image for under these with secure employment circumstances all all year long because it occurs largely for working-age males. Nevertheless it fails to measure girls’s workforce participation adequately and this underestimation is important for rural girls due to their excessive share of engagement in short-term seasonal alternatives majorly within the agricultural sector. Because the PLFS 2022-23 reveals, among the many rural girls solely engaged in subsidiary actions, roughly 82% are concerned in agricultural actions majorly as unpaid household staff/personal account staff. So, whereas it is necessary to not gloss over the subsidiary engagements the place girls take part considerably and seize the varied actions extensively, because the broad employment measures do, we should even be conscious of the perils of decoding the adjustments in these broad measures with out trying into the granular particulars. We have to delve deeper to know whether or not the change is pushed by principal or subsidiary engagements. That is crucial for a greater understanding of the extent of underemployment among the many staff because the period of financial engagement is among the metrics of underemployment and it differs considerably between principal and subsidiary actions.

As we distinguish amongst girls staff based mostly on the principal and subsidiary engagements, we discover that over the interval of 2017-18 to 2022-23, the share of ladies solely in subsidiary engagement has risen from 10% to 23% at all-India stage, with the share rising from 12% to 26% amongst rural girls and 6% to 12% amongst city girls. This means that the rise in FWPR over the current years, is considerably pushed by a rise in subsidiary engagements. These shares are a lot decrease for males because the shares of male staff engaged solely in subsidiary actions are 3% at all-India stage, 3% in rural areas, and a couple of% in city areas in 2022-23. The shares reveal the upper underemployment present amongst girls staff, and extra so in rural areas, compared to male  staff.

Additionally, once we examine girls’s labour market participation throughout the states based mostly on common standing estimates, we have to tread with warning. In keeping with PLFS 2022-23 common standing measures, in case of few states with rural FWPR above nationwide common like Karnataka, Andhra Pradesh, Maharashtra, Telangana, Tamil Nadu, and Gujarat, the shares of ladies with sole engagement in subsidiary actions vary between 2-14%. And, in case of few different states, equally with rural FWPR above nationwide common like Jharkhand, Madhya Pradesh, Odisha, Uttarakhand, a really excessive share of rural girls staff are engaged solely in subsidiary actions, with the shares mendacity between 36-52%. Thus, the character of ladies’s labour market participation may be very totally different between these two units of states, nevertheless it stays uncaptured if one seems on the common standing estimates alone.

In India’s context, due to the empirical realities of a growing nation like excessive prevalence of casual employment, seasonal actions, the broad employment measures  particularly underemployment typically don’t reveal the varied features of high quality of employment together with underemployment. Any try to interpret these employment estimates and adjustments in these estimates must be undertaken with granular stage inspection, in any other case it might be insufficient and deceptive. That is significantly true for ladies who’re majorly engaged in these ill-paid or unpaid short-term marginal actions the place the rise of their participation is extra typically distress-driven and fewer in response to era of good-quality, long-term employment alternatives. It’s due to this fact crucial that policymaking takes under consideration the same old standing estimates along side common principal standing estimates to be able to guarantee a complete consideration of ladies’s work.

This weblog is written by Bidisha Mondal, Senior Analysis Fellow at IWWAGE,
Aneek Chowdhury, Analysis Affiliate at IWWAGE.

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