Current Daily Status (CDS) Unemployment

The Current Daily Status (CDS) method is one of the principal approaches used in India to measure employment and unemployment. It provides the most detailed and comprehensive view of labour utilisation by recording the daily activity status of individuals during a reference week. Unlike broader measures, the CDS captures short-term fluctuations, daily underemployment, and partial work, making it a valuable indicator of both open and disguised unemployment in the economy.

Concept and Definition

Under the Current Daily Status (CDS) approach, the employment or unemployment status of a person is determined for each day of the reference week (usually the seven days preceding the survey).

• A person is considered employed on a given day if he or she:
  • Worked for at least one hour during the day, or
  • Had work for at least one hour but could not perform it due to temporary reasons such as lack of raw materials or bad weather.
• A person is considered unemployed for a day if no work was performed and no work was available for that day.

The CDS measure therefore counts person-days of unemployment, rather than merely identifying whether an individual was unemployed for the entire week or year. The unemployment rate is expressed as the ratio of total person-days of unemployment to total person-days of labour force participation during the reference week.

Features and Characteristics

The CDS method provides a more accurate and granular understanding of employment dynamics.

• Daily Reference Unit: Measures activity status on a day-to-day basis.
• Comprehensive Coverage: Captures intermittent work and daily underemployment.
• Higher Sensitivity: Reflects short spells of unemployment that are often missed in broader measures.
• Person-Day Concept: Accounts for the total number of days worked or not worked across the week.
• Realistic Reflection: Particularly useful in economies with seasonal or informal labour markets.

This daily observation makes the CDS a more realistic measure of labour underutilisation in developing economies like India, where employment is often irregular and dependent on seasonal factors.

Comparison with Other Measurement Methods

India uses three main approaches to estimate unemployment:

Under the Usual Status, a person working even occasionally during the year is classified as employed, while under the Current Weekly Status, working for one hour in a week suffices. The CDS, however, measures employment for each day separately; hence, a person who works only two days in a week will be considered unemployed for the remaining five days.

Statistical Trends and Estimates

Historically, the CDS method has reported higher unemployment rates than other measures because it accounts for part-time and intermittent employment.

• In earlier surveys, such as those conducted in 2004–05, the CDS unemployment rate was estimated at around 8 per cent at the all-India level.
• It showed a decline to approximately 6–7 per cent by 2009–10, indicating an improvement in employment opportunities.
• The measure also highlights seasonal unemployment, especially in agriculture and construction, where labour demand fluctuates sharply across months.

Even in recent years, with the expansion of informal employment and the gig economy, the CDS continues to reveal significant hidden underemployment, especially in rural India.

Advantages of the CDS Method

1. Captures Daily Variation: Provides a fine-grained picture of labour market conditions by recognising day-to-day changes.
2. Identifies Underemployment: Measures partial employment and intermittent work often invisible in weekly or annual averages.
3. Useful for Policy Analysis: Assists in designing employment programmes and identifying sectors with irregular work availability.
4. Accurate Reflection of Rural Labour: Effective in capturing agricultural and seasonal employment patterns.

Limitations of the CDS Method

1. Higher Estimates: Since it counts each day of non-work, CDS unemployment rates appear higher than those from other methods.
2. Complex Data Collection: Requires detailed daily records for every individual in the sample, making it resource-intensive.
3. Short-Term Fluctuations: Daily shocks such as weather or festivals can distort data temporarily.
4. Comparability Issues: Difficult to compare internationally, as most countries use weekly or annual reference periods.

Relevance in the Indian Context

India’s labour market is characterised by a high degree of informality, seasonality, and casual employment, especially in agriculture, construction, and small-scale industries. In such an environment, the CDS method provides policymakers with a realistic assessment of:

• The extent of labour underutilisation.
• The proportion of people experiencing intermittent or disguised unemployment.
• The degree of insecurity of employment among daily wage earners and casual workers.

It also assists in evaluating the effectiveness of employment-generation schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which directly impacts the number of days of employment available to rural households.

Contemporary Policy Implications

CDS-based estimates are valuable for:

• Designing welfare schemes: Tailoring job creation programmes based on the frequency of employment gaps.
• Monitoring economic health: Providing early warnings of labour market distress, especially during droughts or economic downturns.
• Assessing informal sector dynamics: Measuring how many days individuals remain unemployed despite being part of the labour force.