MUMBAI: The BSE has launched India’s first index that will determine the country’s unemployment rate. As per the Index, launched in collaboration with The Centre for Monitoring Indian Economy (CMIE) an independent economic think-tank headquartered in Mumbai, India’s rural unemployment rate stood at 7.15% and the Urban rate stood at 9.62%. The overall rate of unemployment rate in the country stood at 7.97%, the index showed.

This is the first instance of non-governmental organisations producing an unemployment measure for any country, the BSE said.

The unemployment indices are based on response received from over 130,000 individuals in about 39,600 households, both in rural and urban India. The panel of households contains over 500,000 adult individuals from 158,000 households. Respondents are spread across 315 cities and 3,000 villages across India.

CMIE’s Consumer Pyramids Panel of households is utilized to compute the index. The size of the labour force and the unemployment rate in India is measured by asking all the adult members of the panel of randomly selected households, their employment / unemployment status. A comprehensive survey of these individuals would be conducted thrice in a year in three Rounds spanning over four months each. This survey plans to get employment/unemployment status from 125,000 adults per month.┬áThe Estimates would be computed using the sample of responses.

“India does not have a fast-frequency measure of unemployment. This joint effort by BSE and CMIE will produce a 30-day moving average measure of the unemployment rate in India, every day and a monthly unemployment rate at the end of every month. It takes into account all observations available for a calendar month and are available from January, 2016,” BSE said.

The BSE also plans to publish consumer sentiment indices for which it has tied up with University of Michigan’s Institute for Social Research and CMIE. University of Michigan produces consumer sentiment indices in the US that had commenced its first survey of consumers in 1946.

“These indices would consist of 30-day moving average measures of consumer sentiments on a daily basis. Its two major constituents are index of current economic conditions and the index of consumer expectations.”