{"id":49570,"date":"2019-07-12T19:00:50","date_gmt":"2019-07-12T13:30:50","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=49570"},"modified":"2019-07-12T16:02:19","modified_gmt":"2019-07-12T10:32:19","slug":"7-pm-jobless-growth-becomes-more-systemic-12th-july-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-jobless-growth-becomes-more-systemic-12th-july-2019\/","title":{"rendered":"7 PM | Jobless growth becomes more systemic | 12th July, 2019"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/drive.google.com\/open?id=1PhOAhrGj8YeQCKEHS_IhNX20n0Zv5z6n\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Read\u00a0In-depth analysis of all the Editorials here (opens in a new tab)\">Read\u00a0In-depth analysis of all the Editorials here<\/a><\/strong><\/p>\n\n\n\n<p><strong>Context: <\/strong>Labour\nforce participation and jobless growth in India.<\/p>\n\n\n\n<p>Employment has always figured as an important element of the\ngrowth and development process of the Indian economy. India being a highly\npopulated country, employment becomes a crucial element. Employment acts as a\nlink between economic growth and poverty reduction. Employment serves as a\nsignificant variable in the attainment of inclusive and sustainable growth. In India, household based Employment-Unemployment\nSurveys are conducted by the National Sample Survey under Minister of\nStatistics and Programme Implementation (MoSPI), the Annual Labor Force Survey\nby Minister of Labor and Employment (MoLE) and the Population Census by Office\nof the Registrar General &amp; Census Commissioner. The Employment-Unemployment\nSurvey (EUS) is a comprehensive household survey providing labor force\nstatistics in India. It was first conducted in the 9thround of the National\nSample Survey (NSS) in 1955. The current format of quinquennial surveys started\nin the 27thround in 1972-73, based on M.L. Dantwala committee report. Since\nthen, 8 quinquennial surveys have been conducted with the last one conducted\nduring 2011-12. The EUS is carried out over a period of 12 months to account\nfor seasonal variations in employment.<\/p>\n\n\n\n<p><strong>Statistical\ninformation with regard to labor force participation and unemployment:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>According to Periodic Labor Force Survey\n(PLFS) the labor force participation rate in 2012 is 55.5% and in 2018 is\n49.7%. (LFS is percentage of people working or seeking work in the above-15\nyears of age). Women\u2019s labor force participation rate decline from 31% to 24%.<\/li><li>The overall unemployment rate at 6.1%\nwhich is 2.77 times the same figure for 2012.<\/li><li>Women unemployment: in urban areas it is\n10.8% and in rural areas is 3.8%<\/li><li>&nbsp;Educated\nUnemployment: the highest rate among the diploma and certificate holders\n(19.8%); followed by graduates (17.2%); and post graduates (14.6%).<\/li><\/ul>\n\n\n\n<p><strong>Reasons behind\nthe Jobless growth in India:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Services\nsector<\/strong>:\nIndia\u2019s economic growth since the 1990s has\nlargely been on account of an expansion of the services sector, in which\nexports are seen as having played an important role. The rise in the share of\nservices in GDP was particularly sharp after 1996-97 amounting to 6.8\npercentage points over the subsequent 10 years as compared with just 1.9\npercentage points during the previous 10 years. In the event, services as a\ngroup came to dominate the Indian economy, accounting for more than half its\nGDP. The share of the services sector in total employment was relatively low,\nand despite the expansion of services, the growth of employment in this sector\nhas been limited. Between 1999-00 and 2004-05, employment in the tertiary\nsector increased by only 22 per cent, whereas GDP at constant prices\ncontributed by the services sector expanded by 44 per cent. Tertiary sector\nemployment in 2009-10 amounted to only 25 per cent of the work force, despite\nthe fact that around 55 per cent of GDP came from this sector.<\/li><li><strong>Agriculture sector<\/strong>:\nAccording to the National Sample Survey Office\u2019s\n(NSSO\u2019s) periodic labor force survey (PLFS) report showed a collapse in\nagricultural jobs as a key reason behind rising unemployment, particularly in\nthe rural parts of the country. The proportion of people, in the working age\ngroup, employed in agriculture fell by 8 percentage points for rural men and\n9.3 percentage points for rural women, an analysis of the NSSO\u2019s PLFS report\nfor 2017-18.<\/li><li><strong>Productivity across all sectors<\/strong>: A\nlarge share of India\u2019s workforce is employed in low productivity activities\nwith low levels of remuneration. This is especially true of the informal sector\nwhere wages can be one twentieth of those in firms producing the same goods or\nservices but in the formal sector.<\/li><li><strong>Manufacturing sector<\/strong>: Work\nOpportunities that are lost in traditional agriculture have to be replaced by\nwork opportunities in some other sector. In the normal course it is the\nsecondary sectors (manufacturing, electricity and construction) that grow much faster\nthan agriculture during transition of an economy. However, in the post reform\nperiod the growth of manufacturing industries has been constrained by\ncompetition from imports. Thus, in the medium term, the ability of\nmanufacturing sector to replace the work opportunities lost in traditional\nagriculture is rather limited over the years.<\/li><li><strong>Role of MSMEs<\/strong>: The\nMSME sector in India is one of the country&#8217;s biggest providers of jobs, right\nfrom workers to middle management levels.&nbsp;However, larger\ncompanies&nbsp;have sufficient funding to install machinery and automation,\nwhich small scale industries do not. The\nsmall scale businesses are mostly one-person shows, with the entrepreneur\nrunning their company with some assistants and workers. Even marketing is\nusually done by the entrepreneur.&nbsp;This owner runs a low-cost operation, as\nprofits derive from low-cost of operations. So even though MSMEs had the\npotential but unable to tap it due to multiple constraints.<\/li><li><strong>Employment elasticity<\/strong>: Employment elasticity is a measure of the percentage\nchange in employment associated with a 1 percentage point change in economic\ngrowth. The employment elasticity indicates the ability of an economy to\ngenerate employment opportunities for its population as per cent of its growth\n(development) process. The aggregate employment\nelasticity estimates for India vary from 0.18 (arc elasticity) to 0.20 (point\nelasticity) during the post reform period (1993-94 to 2011-12).&nbsp; In India\nthere is very low employment elasticity means economic growth does not leads to\nneeded employment generation. <\/li><\/ul>\n\n\n\n<p><strong>Measures to improve employment opportunities in\nindia:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Enhance\nskills and apprentices:<\/strong> The Labour Market Information System\n(LMIS) is important for identifying skill shortages, training needs and\nemployment created. The LMIS should be made functional urgently. Ensure the\nwider use of apprenticeship programmes by all enterprises. This may require an enhancement\nof the stipend amount paid by the government for sharing the costs of\napprenticeships with employers.<\/li><li><strong>Labor\nlaw reforms:<\/strong> Complete the codification of labour laws at the\nearliest. Simplify and modify labour laws applicable to the formal sector to\nintroduce an optimum combination of flexibility and security. Make the\ncompliance of working conditions regulations more effective and transparent.\nThe National Policy for Domestic Workers needs to be brought in at the earliest\nto recognize their rights and promote better working conditions.<\/li><li><strong>Enhance\nfemale labor force participation:<\/strong> according to NITI Aayog strategy\nfor new India @ 75 Ensure the implementation of and employers\u2019 adherence to the\nrecently passed Maternity Benefit (Amendment) Act, 2017, and the Sexual\nHarassment of Women at Work Place (Prevention, Prohibition and Redressal) Act.\nIt is also important to ensure implementation of these legislations in the\ninformal sector. Further details may be found in the chapter on Gender. Ensure\nthat skills training programmes and apprenticeships include women.<\/li><li><strong>Rural\ntransformation and agriculture sector:<\/strong> there are\nimmense possibilities for diversification in agricultural sector towards more\nvalue added activities such as food processing. This is an area, which has by\nand large remained unexploited, because reforms in agriculture sector having\nbeen very slow, resources have not yet started flowing into food processing\nindustries. Involvement of State Governments in implementing reforms in\nagriculture and food processing sectors is of crucial importance. Economic\nreturns from States initiatives in transforming the rural economy from\ntraditional agriculture to more value added activities in horticulture, etc.\nhas been demonstrated well in some of the States, such as Maharashtra and\nHimachal Pradesh. Such diversification has immense potential for bridging some\nof the gaps in prodcivity levels of workers in agriculture vis a vis other\nsectors. Besides diversification of agriculture there is a strong need to\nrestructure the rural economy by way of promotion of nonfarm activities in\nrural areas. Whatever nonfarm activities are being carried out in the rural\nareas now are more out of desperation to eke out a living rather than an informed\nchoice of a vocation, backed by infrastructural and institutional facilities. A\nmassive improvement in infrastructure is required to promote growth of rural\nindustries on a sustainable basis. This will go a long way in generating good\nquality employment and meeting many of the consumption requirements of rural\npeople. Many steps have been taken in regard to village connectivity, e.g.,\nPrime Minister Gram Sadak Yojana (PMGSY) and telecommunication. But power\nsector reforms are urgently needed to set up modern processing facilities. In\nthis rural areas will be self sustained in creating employment opportunities.<\/li><\/ul>\n\n\n\n<p><strong>Way\nforward: <\/strong><\/p>\n\n\n\n<p>Employment\ngeneration and improving employability has been the priority concern of the\nGovernment. The Government is implementing various programmes in this direction\nlike encouraging private sector of economy, fast tracking various projects\ninvolving substantial investment and increasing public expenditure on schemes\nlike Prime Minister\u2019s Employment Generation Programme (PMEGP), Mahatma Gandhi\nNational Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya\nGrameen Kaushalya Yojana (DDU-GKY) and Deendyal Antodaya Yojana-National Urban\nLivelihoods Mission (DAY-NULM). All the schemes must be implemented in true\nspirit of their objective to generate job opportunities for Indian growing\nlabour force.<\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/jobless-growth-becomes-more-systemic\/article28391822.ece\">https:\/\/www.thehindu.com\/opinion\/op-ed\/jobless-growth-becomes-more-systemic\/article28391822.ece<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read\u00a0In-depth analysis of all the Editorials here Context: Labour force participation and jobless growth in India. Employment has always figured as an important element of the growth and development process of the Indian economy. India being a highly populated country, employment becomes a crucial element. Employment acts as a link between economic growth and poverty&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-jobless-growth-becomes-more-systemic-12th-july-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | Jobless growth becomes more systemic | 12th July, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-49570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":1,"cached_at":"","cached_date":1700658462},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"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=49570"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=49570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=49570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=49570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}