Employment

  • Employment Status
    • NSSO Unemployment-  Rate - 6.1 %
    • LFPR decline - 36.9 % from 39.5 % f11
      • Rural -3.6, U- 0.1 decline
    • Gender gap M = 1.5 x F salary
    • MSDE - Tech / vocational edu - 4.5 % , Korea 96%
    • APSE survey- Contract & casual worker - 53% f18 from 36% f14 
    • Unemployment among youth - 18%
    • ES- 55-60 lakh job/y needed 
    • SDG 8 - Decent Work & eco growth 
    • SDG - 1,2,10 - Reduce Inequality 
    • Decent employment - Job contract, paid leave, social security  
  • Why low Unemployment
    • Slowdown: 6.8%, automobile, real state, banking, etc.
    • voluntary unemployment > low paying jobs
    • Underemployment: PhD for peon vacancies
    • NITI 3 YAA- underemployment, voluntary unemployment - larger problem
    • X industry-academia cohesion
    • 4.4% of urban youth have technical/vocational education.
    • Skill mismatch
    • Growth of service which is not labor-intensive.
    • Growth of capital intensive industry like automobile
    • Export competition from N like Bangladesh, Vietnam
  • Solution 
    • N career service pro (jobseeker online platform)
    • MUDRA , Startup & Stand Up India, Make in India Program, MGNREGA, Special package for textile and apparel sector, Skill India Mission, DDUGKY, SETU
    • Labor Reform, N employment Policy
    • Cluster based development - CEmploZ
    • 'Nourishing Dwarf to bcom Giants' - Ecosurvey 2018-19
    • Employment elastic sectors like textile, leather, Constr. 
    • Labor intensive sector- FPI, furniture, footwear, 
    • organized sector to create well paid decent jobs
    • skilling youth, global level
    • exports expansion - better quality and technology
    • Incentivize industries - corporate T, GST relaxation 
    • Public investments & public jobs - health, edu, admin
    • increase participation of women in workforce.
  • Low Female LFPR
    • WB - 35 % (f94) to 20.2%(f12)
    • Meghalaya - 50% , Bihar -4% 
  • Reason
    • Eco- Mechanization, credit, skilling & specialization, Inc HH income, MGNREGA  
    • Socio- Increasing Edu years, glass ceiling, unsafe envi, patriarchy (hh work), maternity law 
  • Steps taken

    • SHWW Act (Vishaka guideline)- She- Box - 1091 
    • Entre- Stand-up, MUDRA
    • women in night shift + safety - Factory Act advisory 
    • Equal wages - Equal remuneration act, MW act
  • Unemployment Data 
    • NSSO started PLFS replace employment & unemployment survey 
      • quarterly updated
      • Annual estimates (r & u)
      • Use of tech tablet survey  
    • real wages in agriculture (average of all agricultural occupations) declined by 0.5% per annum in the two years to June 2019, whereas non-agricultural wages were stagnant. 
  • Skill India mission - PMKVY
    • Under skilled workforce <4.5%>, unemployment, DD ,
    • National Policy for Skill Development and Entrepreneurship,2015 to skill 40 cr by 2022.
    • demand driven & reward based
    • 37 lakh trained, 10 lakh placed
    • knowledge& innovation based economy,
  • Issues
    • Poor accreditation - QCI - x following NCVT norm wrt faculty , infra
    • Convergence, coordination - multiple SSC,state skill sch
    • MSDE funding cut - Underutilization 
    • Industry-  x wage differential to skilled labor, low abs
    • Integration - formal edu, industry, MSME
    • ITI- 2.5 lakh seat vacant
    • Sharda Prasad - Overlap & COI in SSC 
  • WF
    • Harness NRI talent pool for mentor - VAJRA
    • PPP training inst like Ind Inst of skills 
    • Local body for skill mapping DB
    • Convergence with other sch - ex preference in mudra
    • Global Skill park (ADB, Bhopal , $150 mn)
    • Sharda Prasad - Accountability in SSC, oversight mech on NSDC - sec 25, strengthen ITI, NSDA, Universalize NSQF
    • OECD - World Indicator of skill for employ (wise)
    • Niti - SATH - sustainable action for Transforming human act
Labour reform

  • ILO - 77% of Ind worker in vulnerable enviro
    • 90 % no social security cover 
  • Concurrent List
  • Minimum wage, social security, safety, health, simplification, employment generation 
  • Labour law simplification 
    • 2nd labour com - amalgamation , rationalization , simplification 
    • WISO 
    • Organized enterprise - registered under factories act , 1948 , 20 or more w/o electricity - 10 + 
    • Labour code on wages Bill , 2019 - passed
    • Labour code on industrial relation 
      • Limit raised from 100 to 300 for govt approval before layoff
      • 10 % worker apply - trade union 
    • Labour code on Social security and welfare 
    • Occupation safety , health & working condition -
  • Minimum Wage
    • Non uniform criteria -Cost of living + variable DA , 
    • MW act - not cover all worker (1/3 out)
    • Gender discrimination - (Domestic help vs security guard)
    • Sate wise & sector variance  
    • Anoop Satpathy - Inflation adjusted, Non-food items & HRA, Single value,  in round number (easy dissemination), research unit in MLE   
    • Labour code on wages Bill, 2019 passed
  • Fixed term employment 
    • Statutory benefits, 2w notice after 3-month service
    • Life hood security, commercial competitiveness, job creation, acctblty 
    • x Short term employment shortage 
    • Issues
      • Hire & fire, against SC judgement,
      • Removal of safety net(factory act, contract labour act)
      • disinsentevize regularization, industry bcom sweatshop,
      • maruti Suzuki incident - conflict due to low wage 
      • contract labour, trade union role 
    • Transparency & consensual manner 
    • Arjun sengupta com - formal worker who have contract , 


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