BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA
Transcript of BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA
BEST PRACTICES
ON
LABOUR MARKET
INFORMATION
IN INDIA
Debasish Chaudhuri, Deputy Director General,
Ministry of Labour and Employment1
Labour & Employment Statistics as
components of Labour Market
Information Labour and employment statistics are broadly considered as
components of Labour Market Information which, inter-
alia, includes information under the following heads;
1) Labour Force (composition, distribution)
2) Wages (benefits, compensations etc.)
3) Consumer Price Indices
4) Industrial Relations (Strike, lockout, closure etc)
5) Productivity
6) Welfare (ESIC, Provident Fund, providing shelters,
insurance, education to child/ bonded labour etc.)
7) Working and living conditions of workers.
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Labour Force
Labour force of a country comprises of
the persons who are either ‘working’
(employed) or ‘seeking or available for
work’ (unemployed).
It includes the unemployed, i.e., those
who are not employed, but are seeking work.
It excludes discouraged workers, i.e., those
who have given up and are no longer
looking for work.
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Labour Force can be divided into four
categories:
Self employed workers,
Wage and salary earners,
Casual workers and
Unemployed.
Economic Activity :
Any activity resulting in production of goods
and services that add value to national product is
considered as an economic activity.
Workers (or employed):
Persons who are engaged in any economic
activity constitute workers.
Seeking or available for work (or unemployed):
Persons who, owing to lack of work, had not
worked but either sought work through any means
are considered as those seeking or available for
work ‘or unemployed’.
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Indicators of Labour Force Labour Force Participation Rate (LFPR)
LFPR is defined as the number of persons/
person-days in the labour force per 1000 persons/
person-days.
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Worker Population Ratio (WPR)
WPR is defined as the number of persons/
person-days employed per 1000 persons/ person-days.
Proportion Unemployed (PU)
PU is defined as the number of persons/ person-
days unemployed per 1000 persons/ person-days.
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Unemployment Rate (UR)
UR is defined as the number of persons/ person-
days unemployed per 1000 persons/ person-days in the
labour force (which includes both the employed and
unemployed).
Main Sources of Labour & Employment
Statistics
Decennial population census conducted by
Registrar General of India.
Quinquennial Sample Surveys on Employment
and Unemployment conducted by NSSO.
Annual Employment and Unemployment Surveys
conducted by Labour Bureau.
Periodic Labour Force Survey (PLFS) by NSSO.
Quarterly Quick Employment Survey (QES) by
Labour Bureau.
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Population Census Decennial population census is conducted by Office of
Census Commissioner of India.
India has now more that hundred years old un-
interrupted tradition of population census undertaken
at the interval of every ten years.
The latest population census was completed in March
2011 : Total Population of India - 121 crores.
Questions on the economic activity of the population
are included in these census.
Census provides information on the number of workers
right up to the village level and upwards as well as
classifies them into cultivators, agricultural labour,
household industries and other workers.9
NSSO Surveys on Employment &
Unemployment
Most comprehensive estimates of employment and
unemployment are obtained through labour force
surveys conducted by NSSO. These surveys are
carried out following sound statistical procedures for
collection and analysis of data.
The Employment and Unemployment Survey (EUS) of
the quinquennial rounds of NSSO is the major source
of data pertaining to various characteristics of labour
and employment.
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NSSO Surveys on Employment and
Unemployment (Contd./-)
In these household surveys, detailed information
pertaining to employment and unemployment are
collected with the survey coverage for the entire
country and labour force indicators classified on the
basis of age, sex, education, level of living, industry of
work, occupation of the worker etc. are generated
once in a gap of 5 years.
These surveys also provide estimates of average
daily wages of the employees, employment in the
informal sector and informal employment.
Starting from NSS 27th round (Oct, 1972 - Sept 1973)
nine such surveys have so far been conducted by
NSSO. The last survey in the series is the EUS of
NSS 68th round (July 2011 – June 2012). 11
NSSO Surveys on Employment and
Unemployment (Contd./-)
Mainly two major concepts are used in India:
Usual Principal Status (UPS)
Usual Principal and Subsidiary Status (UPSS)
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NSSO Surveys on Employment and
Unemployment (Contd./-)
Usual Principal Status (UPS): It reflects the status of
an individual over a reference period of one year. Thus a
person is classified as belonging to labour force, if
he/she had been either working or looking for work
during longer part of the 365 days preceding the survey.
The Usual Principal and Subsidiary Status (UPSS)
concept was introduced to widen the UPS concept to
include even those who were outside the labour force on
the basis of the majority time criterion but had been
employed during some part of the year on a usual basis.
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Data Gaps & Limitations in NSSO
Employment Unemployment Surveys
Labour force surveys do not capture informal sector
workers, home workers, child labour and bonded labour.
Occupation-wise (hazardous and non-hazardous separately)
and age-wise distribution of child labour estimates are not
available. These data are required to be collected.
Distribution of persons by number of days at work and total
intensity of work during the reference week.
Data on job-seekers, social security, average earnings, period
of unemployment, hours of work are needed.
Average earnings of self-employed and others with
agriculture and non-agriculture sectors in order to measure
productivity of workers.
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Annual Employment
Unemployment Survey (EUS) by
Labour Bureau The onset of Global financial crisis in
India induced the felt need of frequent
and regular data on Labour and
Employment and the nodal Ministry
initiated necessary steps for the same.
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Comparison of Employment
Unemployment Survey of NSSO and
Labour BureauNSSO LB NSSO LB LB
Round/
Year 66th Rd
2009-10
2nd EUS
2011-12
68th Rd
2011-12
3rd EUS
2012-13
4th EUS
2013-14
Coverage All
States/
UTs
All
States/
UTs
All
States/
UTs
All
States/
UTs
All
States/
UTs
Sample
size
100957 128298 101724 133354 136395
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Labour Force Parameters (in %) UPS
approach
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NSSO LB NSSO LB LB
Sector 66th Rd 2nd EUS 68th Rd 3rd EUS 4th EUS
LFPR
Rural 56.0 54.8 53.3 52.8 54.7
Urban 47.5 47.2 47.8 46.1 47.2
Total 53.5 52.9 51.6 50.9 52.5
WPR
Rural 54.9 52.9 52.1 50.5 52.1
Urban 45.8 44.9 45.9 43.5 44.6
Total 52.2 50.8 50.2 48.5 49.9
UR
Rural 2.0 3.4 2.3 4.4 4.7
Urban 3.6 5.0 3.8 5.7 5.5
Total 2.4 3.8 2.7 4.7 4.9
Labour Force Parameters (in %) UPSS
approach
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NSSO LB NSSO LB LB
Sector 66th Rd 2nd EUS 68th Rd 3rd EUS 4th EUS
LFPR
Rural 60.4 57.9 58.7 55.5 58.8
Urban 48.8 48.0 49.3 46.7 47.9
Total 57.1 55.4 55.9 53.1 55.6
WPR
Rural 59.5 56.3 57.8 53.6 57.1
Urban 47.2 45.8 47.6 44.2 45.5
Total 55.9 53.6 54.7 51.0 53.7
UR
Rural 1.7 2.9 1.7 3.5 2.9
Urban 3.3 4.7 2.0 5.3 4.9
Total 2.1 3.3 1.8 4.0 3.4
Periodic Labour Force Survey
(PLFS) by NSSO
In order to materialize the need for labour
force statistics at more frequent time
interval and to measure the quarterly
changes in the indicators, the Periodic
Labour Force Survey (PLFS) is proposed.
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Periodic Labour Force Survey
(PLFS) by NSSO (Contd…)
Proposed PLFS would provide indirect
estimates of Labour Force parameters as
these estimates will be based on
household survey.
It will not provide estimates of distribution
of employees across the industries/
sectors.
Employment information in the country is
provided by the enterprise based survey.20
Quarterly Quick Employment
Survey (QES) by Labour Bureau
Consequence of Global economic slowdown in Indian
economy demanded the requirement of change in
employment data.
Keeping in view the urgency of the data, it was decided
to conduct these surveys in selected labour intensive
and export oriented sectors which are more likely to be
affected by the global economic slowdown.
Labour Bureau has been conducting Quarterly Quick
Employment Surveys (QES) to assess the changes in
employment of direct and contract workers, export and
non-export in eight selected sectors.
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Quarterly Quick Employment
Survey (QES) by Labour Bureau
(Contd…)These sectors are as below:-
1. Textiles including apparels,
2. Metals,
3. Automobiles,
4. Gems & Jewellery,
5. Transport,
6. IT/BPO,
7. Leather and
8. Handloom/ Power loom22
Quarterly Quick Employment
Survey (QES) by Labour Bureau
(Contd…) As per the report of the latest QES i.e.
28th Quick Employment Survey, the
employment decreased by 0.20 lakh
during the period Oct, 2015 to Dec, 2015
at overall level.
Overall estimated employment in all
selected sectors has experienced a net
addition of 38.81 lakh starting from the
first survey (October, 2008 to December,
2008) till the 28th Survey (Oct, 2015 to
Dec, 2015 ).23
Data Gaps & Limitations in QES
by Labour Bureau In case of some sectors the sampling frame is
not exhaustive and up-to-date.
The States/Centers are selected purposively
keeping in view the manpower available with
the Bureau for conducting survey quickly.
The survey is being conducted only in the
eight selected sectors of the economy likely to
be affected more by slow down.
The informal sector is not being covered
except few units in Handloom /Power loom
sector, due to non-availability of reliable and
exhaustive frame.24
Quarterly Quick Employment
Survey (QES) by Labour Bureau
(Contd…) Considering the acceptability and
increase in demand of QES data, it is
going to be revised to improve the
methods as well as coverage so as to
generate comprehensive information on
the employment situation in the country.
In revised QES, information on
employment, gender, nature of
employment (direct/ contract), type of
ownership, social security benefits would
be covered.25
Quarterly Quick Employment
Survey (QES) by Labour Bureau
(Contd…) Only non-farm emplyment will be covered
which is approximately 51% of the total
employment.
Eight sectors viz Manufacturing,
Construction, Trade, Transport,
Education, Health, Accommodation &
Restaurants and IT/BPOs are proposed
to be covered which constitute nearly
80% of the total non-farm employment.
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Quarterly Quick Employment
Survey (QES) by Labour Bureau
(Contd…) During the first year of the survey, sixth
Economic Census frame will be used for
selection of sample units.
It is proposed to cover approx 10,000
units from eight selected sectors.
As there is no frame available for size
class 1-9 workers, it is proposed to carry
out Area Fame Survey in some selected
blocks/ villages to prepare the frame for
this size class. 27
(Changed from Employment Exchange)
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Employment Exchanges –
Background Government of India
• Policy framework
• Legislation
Employment Exchange {(Compulsory Notification of Vacancies) Act, 1959}
Covers establishments employing >25 workers
Employment Exchanges 978
Job-seekers registered 59.7 million
Largely manual processes
State Governments • Administration of Employment Exchanges
• Current Statistics
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Context for change
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Building, Construction & Real
Estate
3.11
Retail 1.71
Transportation & Logistics 1.17
Beauty & Wellness 1.01
Others 4.92
Total 11.92
Workforce Complexion Demand for Skills by 2022, in
crores
Skill Based Job
Matching
Skill DemandJob creation
Make In India
Digital India
Smart Cities
Housing For All
Swachh Bharat
AMRUTSecondary
and Tertiary
Sectors
Landscape Transformation
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Information asymmetry
Employers, Institutions,
Job seekers
Low IT usage
Manual processes and
reports
Physical visits
Focus on larger
establishments
> 25 workers
HR issues
Adequacy
Capacity Building
(Upskilling)
Other challenges
Jurisdictional issues
Limited coverage
Landscape Transformation
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En
ha
nce
d S
erv
ice
s • Candidates verified through national IDs
• PAN verified institutions
Rich Database
• Nationwide job openings
• Integration with private portals
• Email and SMS gateway
Enhanced Reach
• Rich career content
• Onboarding of counsellors
Counselling Services
• Availability of skilling courses
Training providers
Landscape Transformation
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De
live
ry C
ha
nn
els
PCs/Cyber Cafes 350 Mn internet users
Mobiles/PDAs 210 Mn mobile internet users
Help Desk/Call Centre 12*6, multi-lingual
Common Service Centres1 lakh+ centres
Career Centres 900+ Employment Exchanges
100 Model Centres
National Career Service (Contd…) National Career Service aims at reaching
out to people across the country, in
particular the youth, through a well-
designed structure that comprises an
ICT-based portal, a countrywide set-up of
career centres, a multingual call centre,
and a network of career counsellors.
The chain of Common Service Centres
across the country is another important
channel through which NCS can reach
far and wide.34
National Career Service Portal
The NCS Portal links job-seekers,
employers, counselors and training
providers, all through Aadhaar-based
authentication.
Registration is online and free of charge.
The portal provides information on over
3000 career options from 53 key industry
sectors – from IT to Textiles, Construction
to Automobiles, Pharma and much more.
Job-seekers also have access to industry
trends in a user-friendly way. 35
National Career Service
(NCS)A common, centralized platform to
provide a wide range of career related
services
• Nationwide opportunities
• One stop platform for online services
• Rich career content
• Self assessment tools
• Onboarding of counsellors
“Right choice at right time”
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ECONOMIC CENSUS The scheme was launched by the Central
Statistical Organization in 1976
To meet the long felt need for the
availability of data in respect of
unorganized non-agricultural sector of the
economy.
All enterprises engaged in economic
activities - both agricultural and non-
agricultural, except those engaged in crop
production and plantation
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6th Economic Census
Field work of Sixth Economic Census
was conducted during January 2013 to
April 2014.
The provisional results of 6th Economic
Census were released in July, 2014 by
Central Statistics Office, Ministry of
Statistics and Programme
Implementation.
The final results of 6th Economic
Census are released in March, 2016.
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Highlights of 6th EC (Contd…)
Enumeration Blocks of Population
Census, 2011 were used as the primary
geographical units for collection of data.
Data for handicraft/handloom
establishments were collected for the first
time.
Total number of establishments counted
is about 58.5 million.
Nearly 59.48% of the establishments
belong to rural areas.
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Highlights of 6th EC (Contd…)
About 18.44% of the establishments
operate from outside household without
fixed structure.
About 1.71% of the establishments are
engaged in handicraft/ handloom
activities.
Growth rate in number of establishments
over Fifth EC (2005) is 41.79%.
Total number of persons employed is
about 131.29 million with rural share of
51.71%.
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Highlights of 6th EC (Contd…)
Percentage of hired workers is
about 43.53%.
Percentage of female workers is
25.17%.
Growth rate in total employment
over Fifth EC (2005) is 38.13%.
Employment issues and
concerns at a glance :
Approximately 12 million new entrants tolabour force each year.
Unemployment rates on the rise – youthunemployment about 3 times adultunemployment rates.
Most new employment in Informalsegment and in self employment.
Real wages declining.
Fastest increasing share of employment inConstruction sector.
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Thank You!
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