With reference to the definition of unemployment by the National Statistical Office (NSO), consider the following statements: 1. It includes those who are not working due to lack of work. 2. It excludes those who seek work through employment exchanges. 3. It includes those who express their willingness for work under prevailing conditions. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The National Statistical Office (NSO) classifies the activity status of persons into three broad categories: Working (Employed), Seeking or available for work (Unemployed), and Neither seeking nor available for work (Not in the Labour Force). The definition of unemployment relies on the individual being without work despite being part of the labour force. Statement-wise Analysis: - Statement 1 is Correct: An unemployed person is defined as someone who, during the reference period, did not work and was not engaged in any economic activity specifically due to a lack of work. - Statement 2 is Incorrect: The category "seeking or available for work" includes those who make tangible efforts to find a job. Registering with employment exchanges is a recognized method of seeking work. Therefore, individuals seeking work through employment exchanges are included in the unemployment statistics. - Statement 3 is Correct: The definition encompasses those who are "available for work." This refers to individuals who may not be actively seeking work (perhaps due to a belief that no work is available) but express their willingness to work under prevailing conditions if work is offered. Key Takeaway: To be classified as unemployed by the NSO, a person must satisfy three criteria: they must be without work, seeking work (active search), or available for work (passive willingness). Seeking work through employment exchanges is a valid criterion for inclusion.

NCERT Class 11 Economics — Chapter 7: Employment: Growth, Informalisation and Other Issues

mcqmedium

With reference to the definition of unemployment by the National Statistical Office (NSO), consider the following statements:

It includes those who are not working due to lack of work.
It excludes those who seek work through employment exchanges.
It includes those who express their willingness for work under prevailing conditions.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1, 2 and 3
B1 and 3 only
C1 and 2 only
D2 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The National Statistical Office (NSO) classifies the activity status of persons into three broad categories: Working (Employed), Seeking or available for work (Unemployed), and Neither seeking nor available for work (Not in the Labour Force). The definition of unemployment relies on the individual being without work despite being part of the labour force.

Statement-wise Analysis:

Statement 1 is Correct: An unemployed person is defined as someone who, during the reference period, did not work and was not engaged in any economic activity specifically due to a lack of work.
Statement 2 is Incorrect: The category "seeking or available for work" includes those who make tangible efforts to find a job. Registering with employment exchanges is a recognized method of seeking work. Therefore, individuals seeking work through employment exchanges are included in the unemployment statistics.
Statement 3 is Correct: The definition encompasses those who are "available for work." This refers to individuals who may not be actively seeking work (perhaps due to a belief that no work is available) but express their willingness to work under prevailing conditions if work is offered.

Key Takeaway:

To be classified as unemployed by the NSO, a person must satisfy three criteria: they must be without work, seeking work (active search), or available for work (passive willingness). Seeking work through employment exchanges is a valid criterion for inclusion.

Your note

More from Chapter 7: Employment: Growth, Informalisation and Other Issues

With reference to the definition of ‘workers’ in the Indian economy, consider the following statements: 1. Self-employed individuals are considered workers in the Indian economy. 2. A person temporarily abstaining from work due to illness is excluded from the worker category. 3. Those who help main workers in economic activities without receiving direct payment are included in the category of workers. Which of the statements given above is/are correct?

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Consider the following statements regarding the ‘Worker-Population Ratio’ in India: 1. It is defined as the total population divided by the number of workers. 2. The worker-population ratio is generally higher in rural areas compared to urban areas. 3. A higher ratio indicates that a greater proportion of the population is actively contributing to the production of goods and services. Which of the statements given above is/are correct?

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With reference to the concepts of Gross Domestic Product (GDP) and Gross National Product (GNP), consider the following statements: 1. GNP is calculated by deducting the value of exports from the GDP. 2. GDP is the total money value of all final goods and services produced in a country in a year. 3. The net earning from foreign transactions is always positive for a developing country like India. Which of the statements given above is/are correct?

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Consider the following statements regarding the participation of women in the workforce in India: 1. Women constitute the majority of the workforce in rural India. 2. The worker-population ratio for women is significantly higher in urban areas than in rural areas. 3. Many household activities performed by women are not recognised as productive work, leading to an underestimation of women workers. Which of the statements given above is/are correct?

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The term "Squatters" in the context of the informal sector refers to:

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Keep practising Chapter 7: Employment: Growth, Informalisation and Other Issues

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The correct option is 1 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Correct: An unemployed person is defined as someone who, during the reference period, did not work and was not engaged in any economic activity specifically due to a lack of work.
Statement 2 is Incorrect: The category "seeking or available for work" includes those who make tangible efforts to find a job. Registering with employment exchanges is a recognized method of seeking work. Therefore, individuals seeking work through employment exchanges are included in the unemployment statistics.
Statement 3 is Correct: The definition encompasses those who are "available for work." This refers to individuals who may not be actively seeking work (perhaps due to a belief that no work is available) but express their willingness to work under prevailing conditions if work is offered.

Key Takeaway: