ppt employment unemployment in india

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Issues in Indian Economy

Employment and Unemployment situation in India

2

Employment and Unemployment in India

• Introduction

• Concepts and Definitions

• Measurement of Employment and Unemployment

• Trends in Employment and Unemployment

• Some Policy Issues

3

Concepts and Definitions

The entire spectrum of human activity falls into two categories –economic activities and non-economic activities.

Any activity resulting in production of goods and services that add value to national product was considered as an economic activity for the employment and unemployment survey. Such activities included (i) production of all goods and services for market (i.e. for pay or profit)

including those of government services, (ii) production of primary commodities for own consumption and (iii) own account production of fixed assets.

UN System of National Accounts

4


The term 'economic activity' as defined in the employment and unemployment included:

(i) all the market activities performed for pay or profit which result in production of goods and services for exchange.

(ii) of the non-market activities,(a) all the activities relating to the agriculture, forestry, fishing, mining and quarrying sector (i.e. industry Divisions 01 to 09 of NIC-2008) which result in production of primary goods for own consumption (including free collection of uncultivated crops, forestry, firewood, hunting, fishing, mining, quarrying, etc.)and(b) activities relating to the own-account production of fixed assets, which include production of fixed assets including construction of own houses, roads, wells, etc., and of machinery, tools, etc., for household enterprise and also construction of any private or community facilities free of charge. A person may be engaged in own account construction in the capacity of either a labourer or a supervisor.

NSSO

5


Activity Status: It is the activity situation in which a person was found during a specified reference period with regard to the person's participation in economic and non-economic activities. According to this, a person could be in one or a combination of the following three broad activity statuses during the reference period:

(i) working or being engaged in economic activity (work),(ii) being not engaged in economic activity (work) but either making tangible efforts to seek 'work' or being available for 'work' if 'work' is available and(iii) being not engaged in any economic activity (work) and also not available for 'work'.

Broad activity statuses mentioned in (i) and (ii) above are associated with 'being in labour force‘ and the last with 'not being in the labour force'. Within the labour force, broad activity status (i) and (ii) were associated with 'employment' and ‘unemployment’, respectively.

6


The detailed activity statuses under each of the three broad activity statuses (viz.‘employed’, ‘unemployed’ and ‘not in labour force’) and the corresponding codes used in the survey are given below:

Working (or Employed)self-employedregular wage/ salaried employeecasual labour

Not working but seeking/available for work (or Unemployed)Neither working nor available for work (or Not in Labour force)

– attended educational institutions– attended to domestic duties only– attended to domestic duties and was also engaged in free collection of goods (vegetables,roots,

firewood, cattle feed, etc.), sewing, tailoring, weaving, etc. for household use– rentiers, pensioners, remittance recipients, etc.– not able to work owing to disability– others (including beggars, prostitutes, etc.)– did not work owing to sickness (for casual workers only)– children of age 0-4 years

7


• Workers (or Employed): Persons who were engaged in any economic activity or who, despite their attachment to economic activity, abstained themselves from work for reason of illness, injury or other physical disability, bad weather, festivals, social or religious functions or other contingencies necessitating temporary absence from work, constituted workers. Unpaid household members who assisted in the operation of an economic activity in the household farm or non-farm activities were also considered as workers.

• Seeking or available for work (or unemployed): Persons who, owing to lack of work, had not worked but either sought work through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or expressed their willingness or availability for work under the prevailing conditions of work and remuneration, were considered as those ‘seeking or available for work’ (or unemployed).

• Labour force: Persons who were either 'working' (or employed) or 'seeking or available for work' (or unemployed) constituted the labour force.

• Not in labour force: Persons who were neither 'working' nor 'seeking or available for work‘ for various reasons during the reference period were considered as 'not in labour force'.

8


• Self-employed: Persons who operated their own farm or non-farm enterprises or were engaged independently in a profession or trade on own-account or with one or a few partners were deemed to be self-employed in household enterprises.– own-account workers, employers, helpers in household enterprise

• Regular wage/salaried employee: These were persons who worked in others’ farm or nonfarm enterprises (both household and non-household) and, in return, received salary or wages on a regular basis (i.e. not on the basis of daily or periodic renewal of work contract).

• Casual labour: A person who was casually engaged in others’ farm or non-farm enterprises (both household and non-household) and, in return, received wages according to the terms of the daily or periodic work contract, was considered as a casual labour.

9

Measuring Employment/Unemployment

• Different approaches followed to determine activity status: The persons surveyed were classified into various activity categories in three approaches on the basis of activities (economic/non-economic) pursued by them during certain specified reference periods.

• The three approaches are usual status approach, current weekly status approach and the current daily status approach. Three reference periods used in NSS surveys are (i) one year, (ii) one week and (iii) each day of the reference week. – The activity status of a person in the usual status approach, the activity

status of a person is determined on the basis of the reference period of one year.

– The activity status of a person in current weekly status approach is determined on the basis of the reference period of one week

– The activity status of a person in current daily status approach is determined on the basis of the reference period of one day.

10

Measuring Employment/Unemployment

11

Trends in Employment/Unemployment

• Labour Force and Work Force

YearWorkfore Participation Rate

Male Female Persons1983 53.9 29.6 42.01993/94 54.5 28.6 42.02004/05 54.7 28.7 42.02011/12 54.4 21.9 38.6

12


• Growth

13


• Structure

14


• Sectoral Distribution of Male and Female Workers

15


• Employment Categories

16


• Employment Categories

17


Organised Versus Unorganised Sector Employment

18


• Organised Versus Unorganised Sector Employment

19


• Unemployment Rates

20


• Distribution of Workers by Level of Education

21

Employment Generation Programmes in India

• Swarnjayanthi Gram Swarojgar Yojana (SGSY)– It was launched in April 1999 as a major programme for self-employment of the rural poor after

restructuring the then existing Integrated Rural Development Programme (IRDP) and combining it with other allied schemes like TRYSEM, DWCRA, SITRA, GKY and Million Wells Scheme for effective implementation under a single banner called SGSY.

• Prime Minister's Employment Generation Programme (PMEGP)– The scheme was announced by the Prime Minister on 15 August, 2008 in his address from the Red

Fort. This is credit linked scheme formed by merging erstwhile REGP and PMRY scheme. KVIC is the nodal agency at the national level.

– Its main aim is to generate continuous and sustainable employment opportunities in rural and urban areas of the country.

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)– MGNREGA guarantees 100 days of employment in a financial year to a rural household whose adult

members are willing to do unskilled manual work. This Act is an important step towards the realisationof the right to work. It is also expected to enhance people's livelihood on a sustained basis, by developing the economic and social infrastructure in rural areas.

22


• Swarna Jayanti Shahari Rozgar Yojana (SJSRY)– This scheme came into effect on 1 December 1997 with an aim to provide gainful employment to the

urban unemployed and under-employed poor by encouraging them to set up self-employment ventures.

– The government has launched this rationalised SJSRY to replace the three existing schemes -- Nehru Rozgar Yojana (NRY), Urban Basic Services for the Poor (UBSP), and PM's Integrated Urban Poverty Eradication Programme (PMI UPEP).

• Pradhan Mantri Gram Sadak Yojana (PMGSY)– The scheme comes under the authority of the ministry of rural development and was begun on 25

December 2000.– The goal was to provide roads to all villages (1) with a population of 1,000 persons and above by 2003,

(2) with a population of 500 persons and above by 2007, (3) in hill states, tribal and desert area villages with a population of 500 persons and above by 2003, and (4) in hill states, tribal and desert area villages with a population of 250 persons and above by 2007.

• Sampoorna Grameen Rozgar Yojana (SGRY)– SGRY was launched in September 2001 by merging the erstwhile schemes of Jawahar Gram Samridhi

Yojana (JGSY) and Employment Assurance Scheme (EAS). The objective is to provide additional wage employment in the rural areas and food security, along with the creation of durable community, social and economic infrastructure in rural areas. The SGRY is open to all rural poor in need of wage employment and desire to do manual work.

23


S.No. Employment Generation Programme

Year of Beginning Objective/Description

1Employment Guarantee Scheme of Maharashtra

1972 To assist the economically weaker sections of the rural society.

2Crash Scheme for Rural Employmement (CSRE)

1972 For rural employment

3Training Rural Youth for Self-Employment (TRYSEM)

1979 Program for Trainingrural youth for self employment.

4Integrated Rural Development Programme (IRDP)

1980All-round development of the rural poor through a program of assetendowment for self employment.

5National Rural Employment Program (NREP)

1980 To provide profitable employment opportunities to the rural poor.

6Rural Landless Employment Guarantee Program (RLEGP)

1983 For providing employment to landless farmers and laborers.

7Self-employment to the Educated Unemployed Youth (SEEUY)

1983 To provide financial and technical assistance for self-employment.

8Self-Employment programme for Urban Poor (SEPUP)

1986To provide self employment to urban poor through provision of subsidyand bank credit.

9 Jawahar Rozgar Yojana 1989 For providing employment to rural unemployed.

10 Nehru Rozgar Yojana 1989 For providing employment to urban unemployed.

11Scheme of Urban Wage Employment (SUWE)

1990To provide wages employment after arranging the basic facilities forpoor people in the urban areas where population is less than one lakh.

24


S.No. Employment Generation Programme

Year of Beginning Objective/Description

12Employment Assurance Scheme (EAS)

1993 To provide employment of at least 100 days in a year in village.

13Swarnajayanti Shahari Rozgar Yojana (SJSRY)

1997To provide gainful employment to urban unemployed and underemployed poor through self employment or wage employment.

14Swarna Jayanti Gram Swarozgar Yojana (SYGSY)

1999For eliminating rural poverty and unemployment and promoting selfemployment.

15Jai Prakash Narayan Rojgar Guarantee Yojana (JPNRGY)

Proposed in 2002-03 budget

Employment guarantee in most poor distt.

16National Rural Employment Guarantee Scheme

2006 To provide atleast 100 days wage employment in rural areas.

17Sampoorna Grameen Rozgar Yojana

2001To provide wage employment and food security in rural areas and alsoto create durable economic ans social assets.

18 Food for Work Programme 2001To give food thrugh wage employment in the drought affected areas ineight states. Wages are paid by the state governments partly in cashand partly in foodgrains.

19Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

2005To create a right based framework for wage employment programmesand makes the government legally bound to provide employment tothose who seek it.

20Prime Minister’s Employment Generation Programme(PMEGP)

2008To generate employment opportunities in rural as well as urban areasthrough setting up of new self-employment ventures/projects/microenterprises.

25

• Major Concerns– There has been increasing informalization of the workforce.– The decline in the work participation of females– Labour market inequalities are large and disparities and

inequalities have generally increased. The most striking is the disparity between the regular/casual and organized/ unorganized sector workers.

– The gap between per-worker earnings in agriculture and non-agriculture has considerably widened and now stands at a ratio of 1: 6

– The increasing ‘informalization’ of employment has gradually eroded the strength of trade unions.

Labour Market Performance and EmploymentOutcomes in the Last Three Decades

26

Labour Market Performance and EmploymentOutcomes in the Last Three Decades• Positive Outcomes

– The process of diversification of employment away from agriculture has accelerated

– The rise in wages has led to decline in absolute poverty.– Labour productivity has also shown an increase, although it

remains low in comparison to global figures– Rising middle-class, which includes better-educated and skilled

workers with rising incomes and high levels consumption.– Significant growth in some advanced sectors of the economy

such as information technology, automobiles, pharmaceuticals etc., which has had a spill-over effect on other sectors.

– rise in the unionization of informal-sector workers

27

Employment Challenges

• The large number of ‘working poor’ and under-employed engaged in low-productivity activities in the unorganized sectors.• the vulnerability of the working poor. The low earnings are compounded by

deplorable conditions of work in many informal-sector enterprises, as well as in the work premises of self-employed workers engaged in petty activities either at home or on the streets. They suffer from high health-risks as well as lack of safety standards.

• Although, overall, open unemployment is low, the problem of youth unemployment, particularly that of educated youth, is gradually becoming a major concern.

• About 30 per cent of the total unemployed in the year 2011-12 were graduates and above, up from 21 per cent in 2004-05. Differently put, the rate of unemployment among graduates (including technically trained), and diploma holders was around 18 per cent.

28

Employment Challenges

• Then there will be the new entrants in the labour force and the so-called ‘demographic dividend’.– By 2030 India’s workforce will be larger than that of China. Most of the new

entrants will be in the urban areas.

– Providing education and skills to the growing young population and meeting their job aspirations pose huge challenge. As the pace of migration and urbanization is likely to accelerate in the future, there will be the huge task of planning urban growth and formulating effective labour market policies. Failure to do so can be disastrous.

• The unequal access to employment, and discrimination in the labour market, poses yet another challenge.– The inequalities and disparities that exist in access to employment across

gender, regions and social groups remain a huge challenge in India.

29

Policy Agenda

• A medium- to long-term employment strategy should be envisaged to deal with the challenges highlighted above.

– Regulatory interventions in informal enterprises should ensure that a minimum quality of employment is maintained and basic rights of workers are respected.

– Appropriate policies and measures to address the issue of education and skills acquisition, and of skills mismatches need to be urgently put in place.

– Affirmative action policies should be there to increase in access to quality employment across different social groups and regions.

30

Policy Agenda

– Need for the restructuring macroeconomic policies to make them supportive of an appropriate employment strategy

• Tax incentives for particular types of investment or economic activity,• public-sector investment in infrastructure or institutional support which promotes

enterprise-development, • research and development which aims to open up new production methods which are

more labourintensive, • training and skill systems which make labour more productive, • labour codes which encourage hiring, promotion of small and medium enterprises that

are known to be more labour intensive

– Debates on labour market flexibility must be resolved in a way that meets the needs of both workers and enterprises.

• Simplification and modernisation of labour laws; ensure equal pay; strictly enforce the payment of minimum wages and to provide social security to all workers; job security trade-off

• provide a minimum level of social security to all workers, which will certainly promote flexibility

ppt employment unemployment in india

Documents