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Farm Crisis | Unemployment
Unemployment

Unemployment

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Labour and employment related statistics and data are collected, compiled and disseminated by several agencies in India. The Ministry of Labour and Employment through the office of Labour Bureau is an important agency involved in this task. The Ministry of Statistics and Programme Implementation is another major source, which collects and publishes data on this subject through its various divisions. Besides these two, the State Governments also collect labour statistics, mostly through the Department of Labour & Directorate of Economics & Statistics.

It is worth noting that the household based employment surveys (like PLFS by MoSPI) being conducted in the country are providing employment scenario for the supply side of labour market. A consolidated picture of employment from demand side at regular intervals is also required for policy planning. For the latter purpose, we need establishment based census and sample surveys. The All India Quarterly establishment based Employment survey (AQEES) has been started to fulfill the above mentioned gap. The AQEES will provide estimates of employment, vacancies, training and other related parameters for major nine sectors of the economy. This report is a component of AQEES covering establishments with at least 10 workers. The other component, AFES, will capture information about establishments with less than 10 workers.

The Labour Bureau has been entrusted with the task of conducting the All India Quarterly Establishment based Employment Survey (AQEES). The AQEES has two components namely Quarterly Employment Survey (QES) in respect of establishments employing 10 or more workers (mostly constituting ‘organised’ segment) and Area Frame Establishment Survey (AFES) to build up a frame in respect of establishments (mostly the ‘unorganised’ segment) employing 9 or less workers. After, a period of one year or initial round of AFES, the results from the 4th QES round will be merged with the findings of AFES so as to get a consolidated picture of employment scenario in respect of establishments employing 9 or less workers as also establishments with 10 or more workers. AQEES will cover all non-farm activities except division 01, 02, & 03 of NIC-2008.

In order to generate high quality accessible data on labour market for effective implementation of policies and welfare of labour, the Government of India has decided to conduct Quarterly Employment Survey (QES) to assess employment situation in respect of selected nine sectors of Non-farm economy of India over successive quarters. The selected nine sectors are Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation & Restaurants, Information Technology (IT)/ Business Process Outsourcing (BPO) and Financial Services. The present Quarterly Employment Survey (QES) is the 1st in the series with large sample covering 9 major sectors.

The scope of the present QES is limited only to establishments having 10 or more persons (Organized Segment) as identified by the Sixth Economic Census (2013-14). The scope & coverage of AQEES and, hence, of QES is further limited to employment in non-farm economy covering nine sectors viz. Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation & Restaurants, IT/BPO and Financial Service Activities.

The report of this survey contains detailed information on employment situation as on 1st April, 2021 in respect of 1st Round at national level in nine selected sectors. It provides information on important characteristics of employment such as gender-wise employment, regular or contract and casual basis and part-time or full-time workers, number of vacancies, skill development programme conducted and on the job training provided by the establishment.

The list of all these establishments, as appearing in the Directory of Establishments, in the above mentioned nine major sectors in Sixth Economic Census (EC), was used as the sampling frame for the present QES survey. The aforesaid nine sectors account for around 85 percent of the total employment in units with 10 or more workers in the 6th EC.

The key findings of the Report on the First Round of Quarterly Employment Survey under the AQEES (released in September, 2021), which has been produced by the Labour Bureau, Ministry of Labour and Employment, are as follows (please click here to access): 

• The estimated total employment in the nine selected sectors from the first round of QES works out as 3 crores and 8 lakhs approximately against a total of 2 crores and 37 lakhs in these sectors taken collectively, as reported in the Sixth Economic Census (2013-14), implying a growth of 29 percent. Of the total employment estimated in the selected nine sectors, Manufacturing accounts for nearly 41 percent, followed by Education with 22 percent, and Health 8 percent. Trade and IT/ BPO engaged 7 percent of the total estimated number of workers.

• The most impressive growth of 152 percent has been recorded in the IT/ BPO sector, while growth rates in Health 77 percent, Financial Services 48 percent, Education 39 percent, Manufacturing 22 percent, Transport 68 percent and Construction 42 percent were also quite significant. However, employment in Trade came down by 25 percent and in Accommodation & Restaurant the decline was by 13 percent. Nearly 90 percent of the establishments have been estimated to work with less than 100 workers, though 34.8 percent of the IT/ BPO establishments worked with at least 100 workers, including about 13.8 percent engaging 500 workers or more. In the Health sector, 18 percent of the establishments had 100 or more workers. It may be mentioned that 95 percent of the establishments were reported to working with less than 100 workers in the Sixth Economic Census. And in the IT/ BPO sector the figures during 2013-14 for the size classes 100 or more and 500 or more stood at 19 and 6 respectively.

• The over-all percentage of female workers stood at 29, slightly lower than 31 reported during 6th EC.

• Regular workers constitute 88 percent of the estimated workforce in the nine selected sectors, with only 2 percent being casual workers. However, 18 percent of workers in the Construction sector are contractual employees and 13 percent are casual workers.

• About 97 percent of the establishments were located outside households in fixed structures, though 4 percent of units in IT/ BPO sector were found to operate from within households.

• Only 9 percent of the establishments (with at least 10 workers) were not registered with any authority or under any act. While 26 percent of all the establishments were registered under the Companies Act, this percentage was as high as 71 in IT / BPO, 58 in Construction, 46 in Manufacturing, 42 in Transport, 35 in Trade and 28 in Financial services. One-fourth of the establishments were operating as registered societies, 41 percent were registered under Excise and 30 percent under Shops and Establishments Act.

• Looking at the educational qualifications of employees, it came out that 31 percent of those working in seven of the nine sectors (excluding Education and Health) were matriculates/ secondary or less educated, while another 31 percent were graduates or had higher qualifications. In fact, the latter percentage is as high as 70 in the IT/BPO sector and 59 in Financial Services. In the Health sector, as few as 22 percent of the non-Clinical workers were matriculates/ secondary or less educated, the figure being 15 percent in the non-Teaching staff in the Education sector. More than one-third of the employees in these two sectors were at least graduates.

• It is somewhat encouraging to note that 18 percent of the establishments provide formal skill development programmes, mostly for their own employees, though. It transpired that an estimated 3.6 percent of the establishments were having vacancies in positions and the estimated number of vacancies was a little over one lakh 87 thousand. And about 39 percent of such vacancies were not due to retirement or resignation of employees.

• Coming to assess the impact of COVID-19 pandemic on employment in the organized non-farm segment of the Indian economy, employment decreased due to the pandemic in 27 percent of the establishments. On the bright side of the employment scenario, it may be noted that 81 percent of the workers received full wages during the lock-down period (March 25-June 30, 2020), 16 percent received reduced wages and only 3 percent were denied of any wages. In the Health and Financial Services sector, however, more than 90 percent workers received full wages. However, in the Construction sector, 27 percent had to accept reduced wages and 7 percent were left with none.

While using the QES estimates the following points have to be kept in mind: 

* QES does not capture employment data from units which emerged after the 6thEconomic Census in 2013-14.

* The survey work for the first quarter of QES corresponds to the period of second wave of COVID-19 pandemic and in view of the surge in covid-19 cases across the country several lockdown restrictions were imposed by respective State/ UT authorities. Therefore, data collection was mainly carried out telephonically and through visits by investigators wherever possible.

* The survey is based on either records or responses of the establishment. However, verification of records has not been resorted to for collection of data.

* If an individual who is working in more than one establishment on a given reference date the worker is counted separately for each establishment giving rise to possible duplication.

Rural Expert
 

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