Indian Labor Market

8/3/2019 Indian Labor Market

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Labor Marketof

India


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G eneral InformationArea: 3.3 mln kmPopulation: 1,140 mlnMales 57%Females 43%15+ age 40%People live in villages

70%

! India occupies only 2.4% of the world's land area,but it supports over 15% of the world's population.

Only China has a larger population


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G eneral InformationThe Indian labor market can be categorizedinto three sectors: Rural workers , who constitute about 60% of theworkforce Organized of the formal sector,that constitutes about 8% of the

workforce; and declining producing40% of GD P.

Urban unorganized or informalstructure which represents the 32%of the workforce


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Labor market size*Consists of 430 million workers, growing 2% annually*Low level of open unemployment(3.1%) high level of disguised unemployment, mostly in rural

areas and in agriculture*Low level of womensparticipation in workforce .*Child labor's share inworkforce declining, but inabsolute numbers still quitelarge- at 13 million in 2001.


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Child Labor

According to the Indian government, 20 million childlabor forces exist in India, whereas other sources claimthat it is about 50 million

Efforts of Indian government in order to solve child labor problem


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Causes of Child Labor Common reasons such as absence of primaryeducation, cheap labor force and so forth.

Poverty and over population, considered as major reasons

Adult unemployment and urbanization also causes childlabor

The industrial revolution has also had a negative effectby giving rise to circumstances, which encourages childlabor


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Labor Force& Employment2/3 of Indias workforce is employed in agriculture and rural industriesOnly about 9 percent of the total workforce is in the organized sector; the remaining91 percent are in the unorganized sector, self-employed, or employed as casualwage laborersLabor force can be divided into four categories: self employed workers, wage and

salary earners, casual workers and unemployedEmployment is shifting towards services, not industry


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B est workplaces

1)RMSI- informationsystems2)Marriott- hotels, lodginig3)G oogle- 3rd best placeof it

4)Cadburys -confectionery5)NTPC -leading power company(more than 10.000employer)

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W agesM inimum wage: US$1.5 per hour Average wage: US$145 per month

Agricultural W ages have since 1980s, but yetlower than minimum wage


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Unemployment and Poverty

*Yet, no acceleration of employment growth.*Poverty in India is widespread with the nation estimated to have a third of

the world's poor countryReasons are:The huge population expolsionRural workers cant earn enough during drought seasons and etc.

D elhi and Punjab have low poverty ratios

G overment has implemented many programs

Since 1970, including Self employment,Rural development and etc.


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Other InformationsPersonal income taxIncome range (Rupee) Tax Rate (%)(1US D= 45rupee)1,00,000-1,50,000 101,50,000-2,50,000 202,50,000 and above 30

Sales Tax12.5%

Retirement AgeIn India, the normal retirement age is typically 58 or 60 according toemployers choice


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Contribution of sectors to GD PIndian GDP Trend Of Growth Rate

1960-1980 : 3.5%1980-1990 : 5.4%1990-2000 : 4.4%2000-2009 : 6.4%

Contribution of Various Sectors in GDP

The contributions of various sectors in the Indian GDP for 1990-1991 are as follows:

Agriculture: - 32%Industry: - 27%Service Sector: - 41%

The contributions of various sectors in the Indian GDP for 2005-2006 are as follows:


The contributions of various sectors in the Indian GDPfor 2007-2008 are as follows:


Indian Labor Market

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