Globalization and EmploymentSREERAG.K MSW CENTRAL UNIVERSITY OF KERALA

New economic policy (NEP) was started in 1991 by India The theory of LPG was adopted to connect India with

global market and encourage private sector to invest under liberalized conditions

This approach resulted with rising industrial production and GDP with lowering employment level .It as been termed as job less growth

The basic industrial production increased 6.2% in 1991-92 to 10.3% in 2006-07

GDP average growth rate increased from 5.2% in 1990-95 to 7.1% in 2014-15

• But employment level decreased from 267.3 lack in 1991 to 264.6 lack in 2005

Employment in NEP(in Globalization Era)

• The NEP has increased industrial production, investment,FDI and income

• The NEP has changed the sectroal composition composition of Indian economy agricultural, industrial and service sectors shared 22.00,27.00,and 51% perceptively in 2003

• It shows that NEP has concentrated in services sector .It resulted lower production and employment

• Employment in private sector has increased but, public sector has decreased in the age of NEP

Employment in private sector by Industry

1981 1991 2001 2002 2003 2004 2005

Agriculture 8.6 8.9 9.3 8.6 9.0 9.2 9.8

Mining and quarrying

1.3 1.0 0.8 0.7 0.7 0.7 0.8

manufacturing 45.5 44.8 50.1 48.7 47.4 44.9 44.9

Elecricity,gas,water 0.4 0.4 0.5 0.4 0.5 0.5 0.5

construction 0.7 0.7 0.6 0.6 0.4 0.5 05

Wholesale and retail

2.8 3.0 3.4 3.4 3.6 3.5 3.8

Trasport&communiction

0.6 0.5 0.8 0.8 0.8 0.8 0.9

Finance &Insurance 2.0 2.5 3.7 3.9 4.3 4.6 5.2

Community & Social 12.2 14.9 17.3 17.4 17.6 17.9 18.2

Total 74 76.8 86.5 84.3 84.2 82.5 84.5

• Employment in private sector has increased from 76.8 lakh in 1991 to 84.5 lakh in 2005

• It is only agricultural and social sector where increased the employment has increased in private sector in NEP. The remaining industries have shown either constant or decreasing trend of employment

Employment in public sector1981 1991 2001 2002 2003 2004 2005

Agriculture 4.6 5.6 5.0 4.8 5.1 4.9 5.0

Mining and quarrying 8.2 10.0 8.8 8.6 8.5 10.3 10.1

manufacturing 5.0 18.5 14.3 13.5 12.6 11.9 11.3

Elecricity,gas,water 6.8 9.1 9.4 9.2 9.1 8.7 8.6

construction 10.9 11.5 10.8 10.3 9.5 9.3 9.1

Wholesale and retail 1.2 1.5 1.6 1.6 1.8 1.8 1.8

Trasport&communiction

27.1 30.3 30.4 30.1 29.4 28.4 27.5

Finance &Insurance 7.5 11.9 12.8 12.3 13.8 14.1 14.1

Community & Social 73.6 92 98.3 97.4 96.1 92.8 92.5

Total 154.8 190.6 191.4 187.7 185.8 181.9 180.1

Employment in public sector decreased from 190.6 lakh in 1991 to 180.1 lakh in 2005

Employment in GOVT: sector has decreased from 190.5 lakh in 1991 to 180.1 lakh in 2005.

The employment in the central Govt has decreased from 34.1 lakh in 1991 to 29.4 lakh in 2005 while in the state Govt it has increased from 71.1 lakh in 1991 to 72 lakh in 2005,

Growth Rates of employment in pre and post liberalization period

YEAR 1991 VS 1981 2001 VS 1991 2005 VS 1991

Total employment (+) 16.72 (+) 3.92 (-) 1.01

Private sector (+) 3.78 (+) 12.63 (+) 10.02

Government Employment

(+) 22.90 (+) 0.47 (-) 5.45

• The 61st National Sample Survey (NSS) round reported the generation of 47 million additional employment opportunities during 1999-2000 to 2004-05, implying an annual average of 9.4 million jobs against its 4.0 million annual average during 1993-94 to 1999-2000

• Employment growth rate registered a 2.6 per cent per annum rise over the period, with labor force growing at 2.8 per cent per annum (i.e., 0.2 per cent more than the work force),

• which resulted in increased unemployment rate of 8.3 per cent in 2004-05. In terms of usual principal and subsidiary status (UPSS) number of persons, unemployment rate was 2.5 per cent in 2004-05. These reflected high rate of intermittent unemployment during the period (Ministry of Finance 2009).

• According to planning commission around 21 million employment generated 1994-2000 only 4% has been organized sector and rest of 96% in unorganized sector

• A number of scholars have analyzed the results of the latest National Sample Survey (NSS), that is, the 61st Round, covering 2004-05

• According to Bhalla 2008, Chandrasheker and Ghosh,in 2007 has been revealed that there was a surge in the employment growth rate to an all-time high of 2.82 per cent per annum during the period 1999-2000 to 2004-05. Further, there was revival of employment growth in all the sectors of the economy with the agriculture, secondary and tertiary sectors growing at 1.49 per cent, 5.81 per cent and 3.92 per cent per annum, respectively.

• The slow growth rate in organized sector consisting public ,enterprises, private sector

• Employment in the sector 0.5% in 1994-2000 its very low with post periods

• 28 and 27 million jobs dealing in this sector 2002 to 2003 • According to planning commission around 21 million employment

generated 1994-2000 only 4% has been organized sector and rest of 96% in unorganized sector

Trends in Employment in Organised and Unorganised Sectors in India (inlakhs)

Year Organized sector Unorganized sector Total work force

1983 240.10 (8.33) 2640.00 (91.67) 2880.00

1987-88 257.00 (8.75) 2680.00 (91.25) 2937.00

1991-92 267.33 (8.27) 2966.22 (91.73) 3233.55

1992-93 270.56 (8.20) 3027.42 (91.80) 3297.98

1993-94 271.77 (8.09) 3089.14 (91.91) 3360.91

1994-95 273.75 (7.98) 3157.21 (92.02) 3430.96

1995-96 275.25 (7.97) 3224.26 (92.03) 3499.51

1999-2000 277.89 (7.65) 3355.41(92.35) 3633.30

• Accordingly, the share of organised workforce was about 8.33.per cent by 1983, which declined to 7.65 per cent by 1999-2000. The corresponding share of urorganised workforce was about 91.67 per cent by 1983, which increased to 92.65 per cent by 1999-2000

• As per the 2001 census, the total work force in our country is 402 million, of which 313 million are main workers and 89 million are marginal workers. Out of the 313 million main workers, about 285 million is in the unorganised sector

Arjun Sengupta Committee’s Report

• The Arjun Sengupta Committee report (2006) is a stark reminder of the huge size and poor conditions in this sector. The Report has revealed that in India, almost 370 million people- more than 85% of the working population in India work in the unorganized sector.

• Of these, at least 120 million are women. They contribute around 60% to the national economic output of the country.

• Around 28 crore work in the rural sector, of which an estimated 22 crore are in the agricultural sector. Around 6 crore are in urban areas. Women make up 11-12 crore, of which around 8 crore are engaged in agriculture.

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Past and Present Macro Scenario on Employment and Unemployment on CDS Basis

• Where as, the unemployment rate has shown an increase during the reference period. It has decreased from 8.3 per cent to5.99 per cent between 1983 and 1993-94 and subsequently increased to 7.32 per cent by 1999-2000. This observation holds well in both rural and urban areas.

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