{"id":49704,"date":"2019-07-13T12:31:20","date_gmt":"2019-07-13T07:01:20","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=49704"},"modified":"2019-07-13T12:32:03","modified_gmt":"2019-07-13T07:02:03","slug":"trend-of-jobless-growth-that-was-till-recently-confined-largely-to-the-organised-sector-has-now-spread-to-other-sectors-of-the-economy-discuss-in-the-context-of-la","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/trend-of-jobless-growth-that-was-till-recently-confined-largely-to-the-organised-sector-has-now-spread-to-other-sectors-of-the-economy-discuss-in-the-context-of-la\/","title":{"rendered":"[Answered] \u201cTrend of \u2018jobless growth\u2019 that was till recently confined largely, to the organised sector has now spread to other sectors of the economy\u201d. Discuss in the context of latest Periodic Labour Force Survey (2017-18). What should be done to ensure inclusive growth?"},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual introduction.
Body. <\/strong>Discuss finding of survey.
Conclusion. <\/strong>Way forward and solutions for inclusive growth. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

The findings of the latest employment survey, called the Periodic Labour Force Survey<\/strong> (2017-18), are a cause for concern. The two biggest issues reported are: the shrinking share of the labour force; and the rising unemployment.<\/p>\n\n\n\n

Findings of the survey:<\/strong><\/p>\n\n\n\n

  • The labour force participation rate<\/strong> (% of people working or seeking work in the above-15 years age category) in the earlier survey of 2012 was 55.5%. This has shrunk to 49.7% in 2018. There is an absolute decline in the number of workers from 467.7 million in 2012 to 461.5 million in 2018.<\/li>
  • The figure for the overall unemployment rate at 6.1% <\/strong>is 2.77 times the same figure for 2012. The rise in overall unemployment has both locational and gender dimensions.<\/strong> The unemployment rate is-
    • Urban women- 10.8%<\/li>
    • Urban men- 7.1%<\/li>
    • Rural men- 5.8%<\/li>
    • Rural women- 3.8%.<\/li><\/ul><\/li>
    • There is severe unemployment among men at 6.2%<\/strong> which is higher than among women at 5.7%<\/strong>. However, given the sharp decline in women\u2019s labour force participation rate<\/strong>, due to the double whammy of exclusion from the labour force and an inability to access employment<\/strong> when included in the labour force. The decline in women\u2019s labour force participation from 31% to 24% means that India is among the countries with the lowest participation of women in the labour force.<\/li>
    • The issue of educated unemployment,<\/strong> given its link with not just growth but also with transformative development, has never been as acute as at present. Defined as unemployment among those with at least a secondary school certificate, it is at 11.4% compared to the previous survey\u2019s figure of 4.9%.<\/li>
    • But what is significant is that the unemployment rates go up as levels of education go up. Among those with secondary school education, it is 5.7% but jumps to 10.3% when those with higher secondary-level education are considered. The highest rate is among the diploma and certificate holders (19.8%); followed by graduates (17.2); and postgraduates (14.6%).<\/li>
    • Among the educated, women face a more unfavourable situation than men despite a low labour force participation rate. Compared to the earlier 2012 survey, unemployment of educated men has more than doubled in both rural and urban areas and in the case of women, the rate has nearly doubled. However, it is important to remember is that the rate was higher for educated women, when compared to educated men, in both the periods.<\/li>
    • Youth unemployment rate (unemployment among those in the 15-29 years age category) has reached a high 17.8%<\/strong>. Even here, the women stand more disadvantaged than the men, especially urban women.<\/li><\/ul>\n\n\n\n

      Solutions for inclusive growth<\/strong>:<\/p>\n\n\n\n

      1. Infrastructure<\/strong>: India needs to invest an additional 3-4% of GDP\non infrastructure to sustain current levels of growth and to equalise its\nbenefits. Although this will clearly require a government role, the relative\nroles of the government and private sector need to be defined. Infrastructure\nis important to equalise growth as investments raise productivity and farmer\nincomes in agriculture, infrastructure help in creating jobs, as well as the\ninfrastructure is needed to connect rural India with the benefits of a growing\neconomy.<\/li>
      2. Labor regulations<\/strong>: India\u2019s restrictive labor regulations have\nconstrained the growth of the formal manufacturing sector. Better designed\nregulations can attract more labor-intensive investment and improve the job\nprospects for India\u2019s unemployed millions, those trapped in poor quality jobs,\nand the 80 million new entrants who are expected to join the work force over\nthe next decade.<\/li>
      3. Financial sector<\/strong>: Problems in accessing finance are a major\nimpediment to the performance of small and medium size businesses in India.\nImproving financial intermediation and ensuring broader access to financial\nservices is critical for equalising growth. Inclusive growth needs financial\ninstitutions to be strong and efficient. The experience with cooperative banks\nunder dual regulation, and deposit taking NBFCs with poor governance, points\nout the challenges in ensuring effective regulation and supervision of entities\nallowed to access public deposits.<\/li>
      4. Agriculture and the rural economy<\/strong>: Agriculture is the largest contributor to India\u2019s\nemployment sector. Ensuring sustainable and profitable agriculture would ensure\ninclusive growth. Raising agricultural productivity requires a return to\ninvestments in agricultural technology and infrastructure. Getting the rural\neconomy moving will also require facilitating rural-non farm entrepreneurship.<\/li>
      5. Lagging states<\/strong>: Faster economic growth has seen rising\ninter-state disparities. Lagging states need to bring more jobs to their people\nby creating an attractive investment destination. Reforming cumbersome\nregulatory procedures, improving rural connectivity, establishing law and\norder, creating a stable platform for natural resource investment that balances\nbusiness interests with social concerns, and providing rural finance are\nimportant. Good understanding and coordination between the government machinery\nis essential for development and inclusive growth.<\/li>
      6. Empowerment and opportunity<\/strong>: In order to achieve inclusive growth, policy\nreforms should focus on empowerment and opportunity, enabling all Indian\ncitizens to engage with the emerging economy on fair terms. Expanding rural\ninfrastructure is good, but without complementary investments in empowerment\nand opportunity will not be enough. Increased access to rural finance can be\nimportant, but only if embedded with other reforms to make the rural economy\nwork for the poor.<\/li>
      7. Accountability of reforms<\/strong>: Outlays do not necessarily mean outcomes. The\npeople of the country are concerned with outcome. Emphasis should be laid on\nthe need to improve the quality of implementation and enhance the efficiency\nand accountability of the delivery mechanism. The fruits of reforms are now\nbeing enjoyed by the rich and to some extent by the middle class and they are\nnot reaching the poor. Hence, efforts should be made in this direction.<\/li>
      8. Land reforms<\/strong>: While raising agricultural productivity is a must\nto cope with the shrinkage of agricultural land, the very slow growth of\nnon-farm opportunities for employment (The rising demand for industrialisation,\nincluding SEZs, and for housing in expanding urban areas) and livelihoods and\nsocial security for small holders poses a challenge and argue for a careful and\ncalibrated approach for land acquisition.<\/li>
      9. Inclusive governance<\/strong>: Governance has to be viewed and shaped in the\ncontext of ongoing social change through the functioning of our democratic\nsystem. Experience has amply demonstrated that anticipatory or inclusive\ngovernance is indispensable for achieving inclusive growth. Creation of legal\nentitlements for an individual\u2019s right to work has added to resilience and\ndynamism in our rural economy. The right to information and the right to\neducation are effective tools of empowerment for removing social imbalances. <\/li><\/ol>\n\n\n\n

        The trend of \u2018jobless growth\u2019 that was till recently confined largely, to the organised sector has now spread to other sectors of the economy, making it more generalised. This calls for a thorough re-examination of the missing linkages between growth and employment. Inclusive growth is a wider connotation encompassing social, economic and political factors. Socially, lack of inclusive growth leads to unrest among many people. The measures which raise equity also promote economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Demand of the question Introduction. Contextual introduction. Body. Discuss finding of survey. Conclusion. Way forward and solutions for inclusive growth. The findings of the latest employment survey, called the Periodic Labour Force Survey (2017-18), are a cause for concern. The two biggest issues reported are: the shrinking share of the labour force; and the rising… Continue reading [Answered] \u201cTrend of \u2018jobless growth\u2019 that was till recently confined largely, to the organised sector has now spread to other sectors of the economy\u201d. Discuss in the context of latest Periodic Labour Force Survey (2017-18). What should be done to ensure inclusive growth?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-49704","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/49704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=49704"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/49704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=49704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}