Shrinking Male workforce

admin
By admin August 10, 2019 12:43

Data from the NSSO’s Periodic Labour Force Survey 2017-18,account for 28.6 crore employed male in the country, down from 30.4 crore in 2011-12.

What is Unemployment?

Unemployment is used as a measure of the health of the economy.When a person is searching for employment and is unable to find work then Unemployment occurs.The unemployment rate(one of the measure of unemployment), defined as the number of unemployed people divided by the number of people in the labor force.National Sample Survey Office (NSSO), an organization under Ministry of Statistics and Programme Implementation(MoSPI) is responsible for measurement of Unemployment in India.

 Types of Unemployment in India:

 Seasonal Unemployment:

  • It is an unemployment that occurs during certain seasons of the year.

 Disguised Unemployment:

  • It is a phenomenon wherein more people are employed than actually needed.

 Structural Unemployment:

  • It is a category of unemployment arising from the structural change that is the mismatch between the jobs available in the market and the skills of the available workers in the market.

 Frictional Unemployment/Search Unemployment:

  • It is a category of unemployment arising due to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.

 

 Causes of Unemployment

  • Large population.

  • Low educational levels.

  • Low productivity in agriculture sector forces people to transit from primary to secondary and tertiary sectors.

  • Financial and market linkages to small/ cottage industries or small businesses.

  • Workforce associated with informal sector is not captured in any employment data.

  • Regressive social norms is responsible for women unemployment.

  • Slow Economic Growth

  • Defective Planning:There is wide gap between supply and demand for labour.Planning is not done in a effective manner.

  • Expansion of Universities(especially engineering colleges ): as a result of this huge expansion, educated unemployment has increased.

  • Inadequate Irrigation Facilities: Farmers remain unemployed for most time of the year due to lack of irrigation.

 

Impact of Unemployment:

  • It leads to problem of poverty.

  • It badly affects economy of the country as the workforce gets dependent on the remaining working population.

  • Larger proportion of agricultural Labourers.

  • More urbanisation .

  • Leads to increase in crime in the country.

  • More pressure of population on agriculture.

  • High rate of illiteracy.

  • Addiction of drugs,alcohol and losses to human resources of the country.

 

Situation of unemployment in India/Important Facts:

  • The PLFS report(yet -to-be-released) put the unemployment rate for male in urban and rural segments at 7.1 per cent and 5.8 per cent, respectively.

  • The decline in actual numbers occurred, again for the first time since 1993-94, in both rural and urban male workforce.Data from the NSSO’s Periodic Labour Force Survey 2017-18 ,account for 28.6 crore employed male in the country, , down from 30.4 crore in 2011-12.

  • This is the first instance of a drop in the male workforce that steadily swelled from 21.9 crore in 1993-94 to 30.4 crore in 2011-12.

  • The NSSO data shows an employment loss of 4.3 crore in the rural and 0.4 crore in the urban segment.

  • In all, since 2011-12, India’s national workforce shrunk by 4.7 crore — more than the population of Saudi Arabia.

  • According to the Periodic Labour Force Surveys (PLFS),in 2011-2012 unemployment rate is 2.2% and in 2017-18 it jumped to 6.1 %.

  • Net rural employment loss of 90 lakh between 2004-05 and 2011-12.But the growth reversal in male employment since 2011-12 resulted in over four and half times that loss in national employment.

  • According to Periodic Labour Force Surveys (PLFS) 2017-18, the percentage of working age (15-59 years) population that received any formal vocational/technical training actually came down from 2.2 per cent in 2011-12 to 2 per cent in 2017-18. However,among the youth (15-29 years) a jump of 0.1 per cent is recorded in the same time period.

  • India’s rate of unemployment doubled in the past two years, according to the State of India’s Environment (SoE) in Figures, 2019. This has particularly affected young graduates.

 

Major issues:

  • Even Mudra job survey data/ Various job survey reports are not disclosed yet:the Labour Bureau’s survey on the number of jobs created under the Micro Units Development & Refinance Agency (Mudra) scheme will not be made public for another two months.

 What needs to be done?

  • Special packages should be designed for each industry to create jobs.

  • Entrepreneurship should be encouraged by the government among the youth.

  • Attempts should be made to remove the social barriers for women’s entry.

  • Strict watch on expanision of the universities.

  • Decentralisation of Industrial activities is important.Development of the rural areas should be carried in an efficient way.

  • Investment should be done by government in core sectors like health, education, police and judiciary.This will create many government jobs.

  • Investment should be done in manufacturing sectors and removing structural bottlenecks to the manufacturing sector.

 

Conclusion:

  • All economists and statisticians must appealed to raise their voice against “the tendency to suppress uncomfortable data”.

  • It is imperative that the agencies associated with collection and dissemination of statistics like Central Statistics Office (CSO) and National Sample Survey Organisation (NSSO) must enjoys total credibility and are not subject to political interference.

Focus should be on creating the new job opportunities. As the World Bank recently estimated that India needs to create 8.1 million jobs a year to maintain its employment rate, which has been declining.

admin
By admin August 10, 2019 12:43