Employment, unemployment: India
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2004-2010: Jobless growth?
‘Jobless growth’ during UPA-1, admits Centre
Self-Employed Dropped From 56.4% To 50.7% Of Workforce
Rajeev Deshpande TNN The Times of India 22/04/2013
New Delhi: Some 20 months after hotly contesting data on UPA-1’s “jobless growth”, the government has admitted to lack of substantial increase in employment between 2004-05 and 2009-2010, with the selfemployed workforce shrinking from 56.4% to 50.7% of the total workforce.
In absolute numbers, the self-employed decreased from 258.4 million to 232.7 million in this period while regular salaried workers rose from 69.7 million to 75.1 million. The ranks of casual labour rose from 129.7 million to 151.3 million. In all, the total workforce increased from 457.8 million to 459.1 million, a rise of just 0.3% over this period.
The ministry of planning has identified limited flexibility in “managing” the workforce, high cost of complying with labour regulations, poor skill development and a vast unorganized sector as reasons for dissatisfactory growth in employment.
Responding to Parliament’s finance standing committee’s query on why India was not creating enough productive jobs, the ministry said while the number of salaried employees increased, the selfemployed segment declined.
Interestingly, the ministry referred to the same 66th round of the National Sample Survey Organization that irked the government in June 2011 with Planning Commission deputy chairperson Montek Singh Ahluwalia slamming the report as inaccurate.
The controversy deeply embarrassed the ruling coalition as the data seemed to negate the Manmohan Singh government’s “inclusive growth” slogan despite policy initiatives intended to make growth less uneven.
Under official pressure, the NSSO later put down the employment statistics to factors like rising incomes resulting in women choosing to stay at home instead of taking up physically challenging jobs.
Yet , the planning ministry that has told the finance committee “India had an average growth rate of 7.9% in the 11th plan. However, this growth did not lead to increase in employment opportunities”.
Stating that the NSSO data exhibited a shift in employment status, the ministry said in the period 2004-05 to 2009-10, the percentage of regular salaried workers increased from 15.2% to 16.4% and there was a jump in casual labour from 28.3% to 33%. It indicates that informal employment that accompanies new real estate development, industry and urbanization has lagged.
This would include service providers like road side eateries, local transport, small shops and services like appliance repair.
The planning ministry did not explain the jump in casual labour but this could due to the rural employment guarantee scheme, although the government has also argued that the trend contradicts claims of slow employment.
The numbers may look even less flattering when the next bunch of statistics is available in view of the plummeting growth.
The government has listed measures like boosting manufacturing, developing skills, promoting labour intensive sectors and simplifying labour laws as an antidote to the employment logjam.
GOING SLOW
Percentage of self-employed dropped from 56.4% of total workforce in 2004-05 to 50.7% in 2009-10
Percentage of regular employees rose from 15.2 to 16.4 and of casual labourers from 28.3 to 33
In absolute numbers, number of self-employed was 258.4m in 2004-05 and 232.7m in 2009-10
There were 69.7m regular workers in 2004-05 and 75.1m in 2009-10
Casual labourers rose from 129.7m to 151.3m
Total workforce rose from 457.8m in 2004-05 to 459.1m in 2009-10, an increase of just 0.3% Casual labour grew from 28% to 33%
