The Urban Labour Index (ULI) was designed to capture the economic well-being of urban workers, particularly in informal sectors, by using proxy indicators. Which of the following indicators are included in the ULI?​

Correct option is A

The Urban Labour Index (ULI) focuses on urban informal workers’ economic conditions. Instead of relying on only formal economic data (like GDP or trade balance), it uses proxy indicators such as:

• Milk pouring status (regularity of small cash earnings),

• Land holding (asset base/security), and

• Employment status (labour market participation).

This makes ULI a ground-level tool to measure how well urban informal workers are doing.

Knowledge Booster:

• The ULI was created to bridge the data gap on informal urban labour markets, which employ a huge share of India’s workforce.

• Similar indices like Rural Labour Index focus on rural well-being.

• Tracking informal sector is crucial since over 80% of India’s workforce is informal.