Abstract
Labour market responses to past business downturns across countries have been ambiguous and paradoxical, including both pro‐ and counter‐cyclical reactions. In the absence of adequate social safety nets, including unemployment insurance, counter‐cyclical employment rates could signal distress rather than productive employment opportunities. Juxtaposing household employment‐ unemployment data with the recommendations of the 19th International Conference of Labour Statisticians on labour underutilization, this article critiques existing data on underemployment in India and calls for the review of data collection methods to better inform labour market policies.
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