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LATEST NEWS UPDATES | Nothing to cheer about in Indian job market

Nothing to cheer about in Indian job market

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published Published on May 17, 2017   modified Modified on May 17, 2017
-GoIMonitor.com

Unemployment, irregular jobs and low salaries continue to hurt India while it continues to embrace labour reforms

PRIME MINISTER Narendra Modi pitched for greater use of technology through an unusual equation ‘IT+IT= IT’ which had Internet in splits and Twitterartis trending #pinksliprevolution to underscore the impending layoffs in India’s famed IT sector. But the country’s unemployment saga lies far beyond the glass towers and high figure pay cheques. Around 77 per cent families have no regular wage earner and more than 67 per cent have income less than Rs 10,000 a month. Add to this the consistent march towards labour reforms which make it easier for industries to sack workers. Not even the courtesy of a ‘pink slip’ for them.

Bandaru Dattatreya, the Minister of State (Independent Charge) for Labour and Employment, had said in his reply in the Lok Sabha on February 6, 2017, that the unemployment rate has risen marginally from 3.4 per cent in 2013-14 to 3.7 per cent in 2015-16. However, the data is based on Usual Principal Subsidiary Status (UPSS) approach that requires only 30 days of work in a year to call the person employed. Many of the persons who are reported as ‘ employed’ or ‘workers’ in official publications do not get work for the entire duration or they get the work only for a small fraction of the time they are available.

If instead Usual Principal Status (UPS) approach is taken (183 days of work), the unemployment rises to 5 per cent, says the Fifth Annual Employment Unemployment Survey 2015-16 conducted by the Labour Bureau which also said that only 60.6 per cent workers were able to get work throughout the year.

Female unemployment rate was 8.7 per cent as compared to 4 per cent among males. This variance gets starker in urban areas where female unemployment rises to 12.1 per cent. The reason might be women’s contribution to farm labour and government job schemes like MGNREGA. The North Eastern and Southern states display high female participation as compared to Northern states. Chandigarh had the lowest female labour participation rate at 8.2 per cent followed by J&K (10.5 per cent), Punjab (11.1 per cent), Uttar Pradesh (11.2 per cent) and Delhi (12.2 per cent). Chhattisgarh has the highest female participation rate of 54.3 per cent followed by Mizoram (54 per cent), Nagaland (53.6 per cent), Meghalaya (46.7 per cent) and Andhra Pradesh (46.6 per cent).

More than the availability of jobs, it’s the kind of jobs people have to live with. Of the total employed, 46.6 per cent were self employed, 32.8 per cent were casual labour and the rest 3.7 per cent were contract workers and thus a majority (71.2 per cent) of workers were not eligible for social security benefits. Only 17 per cent persons were regular wage/salaried persons.

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GoIMonitor.com, 12 May, 2017, http://www.goimonitor.com/story/theres-nothing-cheer-about-indias-job-market


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