Labour and employment

Labour and employment
The total employment in India is 465 million. Of this, about 28 million are in the organized sector and 437 million in the unorganized sector. In the unorganized sector, 246 million are in agriculture, 44 million in construction, and remaining in manufacturing and services. Many are home based in occupations such as beedi rolling, agarbatti making, papad making, tailoring, and embroidery work (Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Rajya Sabha, based on National Sample Survey Organization in the year 2009-2010). PIB, 13 March 2013.

At the all India level, 48.2% are estimated to be self employed (usual principal status approach, UPS), 17.4% wage/salary earners and 34.4% are contract worker & casual labourers. The major source of income in rural India is self employment as the under agricultural and non-agricultural activities (51.2% of the households) followed by regular/wage salary (12.9% households). In urban areas it is regular wage/salary earnings (42.1%) followed by self employment (35.6%).

Labour Force Participation Rate (LFPR) is estimated to be 50.9% (UPS approach). LFPR is 52.8% rural and 46.1% urban. All India female LFPR is estimated to be 22.6% and male is 76.6% (principal status approach). Worker Population Ratio (WPR) is estimated to be 48.5% (UPS approach). Rural WPR is 50.5% and urban 43.5%. Female WPR is 20.9% and male WPR is 73.5%.

The unemployment rate is estimated to be 4.7 per cent at All India level (UPS approach). Rural unemployment rate is 4.4% and urban is 5.7%. Female unemployment rate is 7.2% and male unemployment rate is 4.0%. Urban female unemployment rate is 12.8%.

For age group 15-29 years LFPR is 39.5% and Unemployment Rate is 13.3% (UPS approach).

The All India unemployment rate is estimated to be 4.7%. The unemployment rate per 1000 persons aged more than 15 years is highest in Sikkim (136), followed by Arunachal Pradesh (130), Tripura (126), Goa (107) and Kerala (104). The lowest unemployment rate was in Chhattisgarh (14), Karnataka (20), Madhya Pradesh (22), Andhra Pradesh (25) and Gujarat (27).

In unemployment rate per 1000 persons in young people (aged 15 to 29), the highest was Sikkim (372), Arunachal Pradesh (327), Kerala (315), Tripura (306) and Jammu and Kashmir (241). The lowest are Chhattisgarh (33), followed by Karnataka (52), Gujarat (59), Madhya Pradesh (60) and Mizoram (78).

The Report of the Third Annual Employment-Unemployment Survey is available on the Labour Bureau website.

3rd Annual Employment-Unemployment Survey Report 2012-13
Press note (summary).

Non-farm jobs could fall drop by as much as 25% during the FY13-19 period, and non-farm employment could plunge to 38 million in FY13-19 from 52 million in FY05-12 according to CRISIL Research. In 2018-19, India’s working age population would be over 85 million with 51 million of them seeking employment.

CRISIL estimates that the problem is compounded by the increasingly ‘jobless’ nature of growth in recent years due to two factors: first, GDP growth is now mostly driven by the less labour-intensive services sectors such as IT/ITES, and business and financial services and second, the labour dependency of the manufacturing sector - which once used to be the most labour-intensive sector barring agriculture - has diminished considerably as complicated restrictive labour laws and technological progress have encouraged automation. At present agriculture has only a 14% share in GDP, but around 49%.

Crisil estimates India’s economy will grow at an average 6% between fiscal years 2013 and 2019, with 50 million new jobs being created. The Indian economy grew at an average 8.5% between fiscal years 2005 and 2012. But growth fell to 5% in 2012-13, the slowest in a decade, and is expected to be at similar levels this fiscal year as well.

According to NSSO data, 14 million jobs were added between 2009-10 and 2011-12 as against only a million in the five years to 2009-10, labelled by many as a period of jobless growth. In the five-year period ended 2004-05, 60 million jobs were added.

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