Which of the following correctly define the way the unemployment rate is calculated in
India?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. The percentage of persons unemployed among the persons in the labour force
In India, similar to international standards, the unemployment rate (UR) is defined as the percentage of persons unemployed among the persons in the labour force. The labour force includes both employed and unemployed individuals who are actively seeking work. Those who are neither employed nor actively looking for work (e.g., students, homemakers not seeking external employment) are considered "out of the labour force" and are not included in this calculation.