Transcript of Employment in india
- 1. Employment in India Growth after Independence Presented by:
Gaurav Dakliya (2011CH10082) Nikhil Aggarwal (2011CH10099) Paras
Garg (2011CE10377)
- 2. Key Terms Labour force participation rate Percentage of
Working Age Persons Employed Unemployed but looking for a job Work
force participation rate Percentage of the total working age
population employed Unemployment rate Percentage of total working
age population which is unemployed
- 3. Key Terms (Contd.) Usual status (Principal) Usual principal
activity status Labour Force. Employed/Unemployed status
Unemployment rate Usual status (Subsidiary) subsidiary status
workers. Usual Status (PS+SS)
- 4. Key Terms (Contd.) Current Daily Status (CDS) Unemployment
Activity status of an individual for each day of the reference week
Time disposition of an individual on each day of the reference week
Assigning Time Intensities and Activity status Intensity 1.0 full
day, 0.5 Half day Employed for full day 4 Hours 0.5 Intensity for
two economic activities Working for half day Unemployed for full
day/Half Day Outside the labor force for the entire day Current
Weekly Status (CWS) Unemployment one or more of the gainful
activities for at least one-hour on any day of the reference week
Seasonality in Labour Market
- 5. Sector-wise distribution and evolution of economy
- 6. Contribution of different sectors in GDPyear agriculture and
allied activities industry mining and querying manufacturing
services(including construction) Social & Personal Services
1950-51 1450.52 310.26 51.38 250.96 968.42 284.74 1951-52 1472.16
325.43 57.72 258.89 1000.24 293.29 1966-67 1879.62 793.13 122.31
625.63 2032.22 539.5 1967-68 2159.14 804.03 125.19 628.04 2122.94
564.38 1985-86 3336.16 1943.5 291.67 1474.96 4778.16 1311.84
1986-87 3322.5 2078.28 327.39 1556 5105.22 1410.43 1991-92 3902.01
2764.9 484.84 1984.19 6975.1 1852.32 1992-93 4161.53 2851.21 489.31
2045.51 7350.75 1963.32 2000-01 5227.55 4846.65 694.72 3631.63
13353.55 3439.63 2008-09 6556.89 8374.07 980.55 6563.02 26655.8
5444.97 2009-10 6625.09 9122.19 1042.25 7197.26 29329.09 6100.96
2010-11 7091.03 9745.27 1094.21 7741.62 32023.24 6376.75 2011-12
7286.67 10000.42 1084.69 7934.68 34738.06 6747.03
- 7. year 1951-52 1967-68 1986-87 1992-93 2008-09 2010-11 0 5000
10000 15000 20000 25000 30000 35000 year 1950-51 1951-52 1966-67
1967-68 1985-86 1986-87 1991-92 1992-93 2000-01 2008-09 2009-10
2010-11 2011-12
- 8. Dividing in different phases Based on this trend Independent
India can be divided in different phases: Phase 1: Independence to
mid-1960s Phase 2: Mid-1960s to 1980 Phase 3: 1980 to early 1990s
Phase 4: Early 1990s onwards
- 9. Phase 1. Independence to mid 1960s First (1951-1956) and
Second (1956-1961) Five Year Plan. High growth rate in Agriculture
with 59% in GDP share with more than 80% people employed in this
sector. High growth rate in Manufacturing & Industry
sector.
- 10. Phase 2. Mid 1960s to 1980s Third (1961-66), fourth
(1969-1974) and fifth (1974-79) five year plan. Wars drought and
inflation. Growth rate of GDP was 3.5%. Deceleration in growth of
industries. Slower pace of structural shift.
- 11. Phase 3. 1980 to early 1990s Sixth (1980 - 85) and Seventh
(1985-90) Five Year Plan. Sharp growth of GDP between 5.5% to 6%.
Major shift to service sector. Large decline in the share of
agriculture. Manufacturing sector more or less stagnant Percentage
Employment Shift Primary Sector 65.6% to 59.1% Secondary Sector
14.4% to 16.2% Tertiary Sector 20% to 24.7%
- 12. Phase 4. Early 1990s onwards Eighth to Eleventh five year
plan. Beginning of privatization and liberalization. Foreign
policies and trades played major part. Accelerated structural
shift. Contribution to GDP: Primary Sector 20% to 16% Secondary
Sector 26% to 25% Tertiary Sector 54% to 59%. Percentage Employment
shift Primary Sector 59.84% to 53.2% Secondary Sector 17.42% to
21.50% Tertiary Sector 22.73% to 25.40%
- 13. Problems faced by Agriculture Sector Slow and uneven
growth. Obsolete methods for irrigation and cultivation Flaws in
land reforms Finance problems Problems related to storage,
marketing, warehousing, communication and transport
- 14. Problems faced by manufacturing sector Under-utilization of
capacity Absence of proper infrastructure Increasing capital-output
ratio High cost industrial economy Inadequate employment generation
Poor performance of public sector Industrial sickness Global
Competition
- 15. Problems faced in Service Sector Inadequate infrastructure
facilities High growth but low share in providing employment
Improper maintenance in airports, railways, highways, power plants
etc Service sector cannot grow in isolation
- 16. National Rural Employment Guarantee Act (NREGA)
- 17. NREGA Salient features: Employment to all those who are
willing to work. Free registration with a job guarantee within 15
days of application At least 1/3rd of the employees must be women
Fixed minimum wage rate and no upper limit Weekly disbursement of
wages and delays not beyond a fortnight.
- 18. Objectives Unemployment Enhancement of livelihood security
of households Arrest rural migration Sustained Development Create
rural assets Create livelihood
- 19. Implementation and Effectiveness of NREGA 144 Crore
person-days of employment 34 Mn household benefitted Improved
employment per rural household, share of women in workforce,
expenditure per district, share of wages in total expenditure
Decreased % of STs benefitting from NREGA Improved utilization of
funds from 73% to 80%
- 20. Indian Acts For Employment
- 21. Factories Act in India In India, the First factories Act
was passed in 1881. This act was basically designed to protect
children and to provide few measures for health and safety of
workers. This law was applicable to only those factories, which
employed 100 or more workers. In 1891 another Factories Act was
passed which extended to the factories employee 50 or more
workers.
- 22. Factories Act includes: Health Safety Welfare Working hours
of Adult Annual Leave with wages
- 23. Minimum Wages Act, 1948 Objective of this act: To prevent
workers from working at starvation wages. To prevent exploitation
of labor and make provisions for statutory fixation of minimum
rates of wages.
- 24. Broad features of the Act The act lays down the principles
for fixation of: A minimum time rate of wages A minimum piece rate
A guaranteed time rate An overtime rate for different occupations,
localities or classes of work and for adults, adolescents, children
and apprentices.
- 25. Employee State Insurance Act, 1948 Objective: To secure
sickness, maternity and medical benefits to employees of factories
and establishments and dependents benefits to the dependents of
such employee.
- 26. Benefits Sickness and extended sickness benefit Maternity
benefit Disable benefit Dependents benefit Medical benefit Funeral
benefit
- 27. Public and Private Sector
- 28. Public Sector and Private Sector distribution Public Sector
contributed 7.5% of NDP in 1950-1951. Small scale private
industries. Public sector forms 25% of NDP in 2007-2008. Public
sector contributes one-third of Exports
- 29. SECTOR-WISE GROSS CAPITAL FORMATION Year Public Corporate
Sector Private Corporate Sector Gross Capital Formation 1 2 3 4
(BASE : 1999-2000) 1950 2.6 6.1 8.7 1955 5.4 6.3 11.7 1960 6.7 5.8
12.5 1965 8.1 6.9 14.9 1970 5.8 7.9 13.8 1975 7.4 8.6 16.1 1980 8.9
9.5 18.4 1985 10.7 9.7 20.4 1990 9.6 13.4 23.0 1995 8.3 16.2 24.4
2000 6.5 16.3 22.7 2005 7.0 24.0 31.0 2007 7.4 25.0 32.5
- 30. EMPLOYMENT IN PUBLIC AND ORGANISED PRIVATE SECTORS Years
Public Sector Private Sector end march end march 1981 154.8 74.0
1991 190.6 76.8 1995 194.7 80.6 2000 193.1 86.5 2002 187.7 84.3
2003 185.8 84.2 2004 181.9 82.5 2005 180.1 84.5 2006 181.9
87.7
- 31. Reasons for growth of public sector The Industrial Policy
Resolution (1956) Schedule A: stated 17 industries, exclusively
under right of state Schedule B: list of 12 industries
progressively state owned Restrictive to new private
industries
- 32. Benefits Helps in rapid economic growth Promote
redistribution of Income Create employment Promote balanced
regional development Limitations Economic Inefficiency
Ineffectiveness in provision of goods and services Rapid expansion
of bureaucracy Pressure on government Benefits and Limitations in
Public Sector
- 33. Benefits and Limitations in Private Sector Benefits Reduce
political interference Provide adequate competition Generate cash
Reduce the concentration of economic power. Limitations Emphasis on
Non-Priority Industries, Emergence of monopoly power and
concentration, Industrial Disputes, Industrial Sickness.
- 34. Gender-based Analysis
- 35. Women Ratio
- 36. 231.6 106.35 101.08 22.68 Workers in 2009-10 based on
growth rate of Employment rural male rural female urban male urban
female
- 37. Employment Growth Rate: Global Scenario
- 38. 1.9 1.4 2 2003-08 2009-10 2011 2003-08 2009-10 2011 1.2
-0.5 1.0 1.3 -2.4 2.4 2003-08 2009-10 2011 Developing Economies
Transition Economies Developed Economies
- 39. Effect of Integration with global economies on Employment
Employment in India and China
- 40. Similar Current Issues Most important problems in both
economies are currently the same: Agrarian crisis Inadequate
generation of employment in terms of decent work Public neglect of
social sectors Growing inequalities.
- 41. Effect of Integration with global economies (Contd.) Pre
Integration Period China - State Controlled Labour Supply No
Unemployment but Surplus labour Post Integration Period China -
Rigid labour laws dismantled India Not much Reforms in Indian
labour market Shedding of Surplus Labour
- 42. Sector-wise distribution of Labour Force of China and India
(% of labour force) Agriculture Industry Services China 1980 69 18
13 1990 60 21 19 2000 50 23 27 India 1983 86.6 14.7 16.7 1987-88
64.9 17.1 18.0 1992-93 64.0 19.9 20.1 1990-2000 60.4 17.5 22.1
- 43. Effect of Integration with global economies (Contd.)
Unemployment in India and rate of growth Agricultural labour force
Labour intensive manufacturing sector in China Service Sector -
Jobless growth in India IT dominated Service Sector - Educated and
skilled labour Self Employment decreased as of the Increase in wage
employment. Absorbed by Informal sector.
- 44. Distribution of Employment by Type in China (% of total
employment) 1990 1997 2005 Self-employment 51.2 46.1 39.5 Informal
wage employment TVEs 11.2 14.3 19.0 PEIB 03.5 09.8 14.2 Formal wage
employment State 21.5 19.5 09.3 Non-state 0.2 1.5 5.1
- 45. Distribution of Employment by Type in India (% of total
employment) 1983 1993-94 2004-05 Self-employment 57.3 56.4 56.6
Causal wage employment 28.9 31.8 28.4 Regular wage employment 13.8
13.6 15.2 Formal sector employment 7.9 7.3 5.8
- 46. Effect of Integration with global economies (Contd.)
Employment in formal sector Low skilled labour force Increased
labour productivity Brain Drain High Skilled Migrants
- 47. Effect of Integration with global economies (Contd.) Threat
to advanced countries Globalized labour force doubled 10% of United
States labour force may get affected by manufacturing and service
successes in China and India respectively - Freeman Global benefits
growth of these economies Employment needs and provide basic
necessities to growing economy Demand for raw materials and
commodities for other countries
- 48. Conclusion Shift from primary to tertiary sector with
stagnant manufacturing sector. Focus on subsectors with great scope
of growth. Work upon equal participation of both male and female.
Government policies to uplift agriculture sector. IT Sector emerged
as new growth sector. Government focus on manufacturing sector.
Lesson learnt on comparison with China.
- 49. THANK YOU