Trends of employment

JOB CREATION

As outlined in the NITI Aayog’s Action Agenda, India suffers more from the problem of underemployment (i.e. low-productivity, low-wage jobs) than Unemployment as for example:
In 2011-12, agriculture engaged nearly 50% of the workforce but contributed 15% to GDP
In 2010-11, within manufacturing, small firms employed 72% but output was only 12%
In 2006-07, in Services sector, MSMEs employed 98% of workforce but produced 62% of services
Opportunities for creation of well-paying and high productivity jobs: o Expansion of the organized sector to create well-paid high productivity jobs o Shift towards labour-intensive goods and services e.g. apparel, footwear, Food Processing, tourism etc.
Expansion in export market by developing Coastal EMPLOYMENT Zones, using better technology, and improving on quality to remain competitive o Leverage on economies of scale offered by exports market potential o Filling in for ageing workforce of China and also rising labour wages there o Reformation of labour laws.
Significant employment generation also takes place as a direct result of public Investment in Infrastructure-2/”>INFRASTRUCTURE and expenditure on government schemes. Such jobs, being more manual or non-cognitive, do add to the numbers but miss focus on development of cognitive abilities that are going to be indispensable for the Fourth Industrial revolution.

FORMALIZATION OF INDIAN economy

Formalization means creation and expansion of formal jobs, essentially, that come with social security, Financial Inclusion and legal Empowerment of the workforce.

Advantages of formalization
Increased tax revenues for the government due to better reporting under Taxation laws
Coverage of Population under social protection plans, saving from financial distress during difficult times
Increase workers’ welfare and the opportunities for decent jobs
Reduce unfair competition between formal and informal enterprises arising from tax or regulatory arbitrage

Downsides of formalization
Exclusion of population, if knee-jerk steps are taken e.g. demonetization
POVERTY and destitution as rapid formalization imposes additional costs on informal economy

Employment facts

As per Employment-Unemployment Survey (by NSSO) of 2011-12 total workforce employed stands at 47.36 crore; with 23.16 crore in agriculture and 24.2 crore in Industry and services

According to the fifth Annual Employment-Unemployment Survey (EUS) conducted between April and December 2015, 83% of the workers in India were self-employed, casual or contract workers.
As per Economic Census, 2013-14 (latest available), total workforce employed in all establishments stands at 13.1 crore. Further, own-account enterprises (OAEs), which do not employ any regular workers, and enterprises with < 10 workers together accounted for almost 79% of India’s workforce

Beginning from 2017-18, the NSSO has launched periodic labour force surveys (PLFS) to produce annual estimates of formal employment in the economy. This would also help India to meet the IMF’s Special Data Dissemination Standards (SDDS) for releasing quarterly data on macroeconomic indicators

In April 2018, for the first time, India released report on monthly payroll for the formal sector to facilitate analysis of new and continuing employment, based on EPFO’s, ESIC’s and (NPS) PFRDA’s payroll data and subscriptions. The period between September, 2017 and February, 2018 was covered and reported 31.10 lakh new additions across all age groups (those in the 18-25 age group, considered a proxy for new jobs, amount to 18.5 lakh). The payroll data from these three organisations would now be released every month

Report of the NITI Aayog’s Task Force on Improving Employment Data was released

Committee under Dr. T.C.A. Anant, former Chief Statistician of India, is also examining various approaches with a view to reducing redundancy and avoiding duplication of efforts in estimation of employment through the establishment approach. It will also look into whether the monthly payroll data released by EPFO, ESIC and PRFDA can replace the quarterly enterprises-based survey on job creation by the Labour Bureau.

IMPROVING EMPLOYMENT DATA

Report of the NITI Aayog’s Task Force (released in 2017) made recommendations to create a 21st century statistical system in India for the generation of comprehensive employment, unemployment and wage estimates on a sustained basis. These include: Conduct of household surveys on annual basis.

Introduction of time-use survey, that be conducted every three years (such surveys also help in measuring Women’s participation in unpaid work).

Use of technology for faster and better data collection, processing and assimilation. Introduction of annual enterprise survey using enterprises registered with the GSTN as the sample frame.

Separate annual survey of enterprises excluded from the GSTN Database (i.e. those in Health and Education sectors, and those with turnover < INR 20 Lakh in other sectors). Adoption of inclusive and wider definition of ‘formal workers’.

Adoption of GSTN across all legislations, ministries and departments as the universal establishment number

THE two most interesting trends in recent employment figures deserve a closer look. There has been an increase in organised sector manufacturing employment during the period January 2000 to December 2011 to the tune of about 5 million, more than half of which is on the basis of contract.
More recently during March 2014 to July 2015, total employment in manufacturing including organised and unorganised declined in absolute terms while there had been increase of 0.32 million employment in organised manufacturing and this time the share of contract workers of newly employed in organised manufacturing went up to 85 per cent.
In the case of unorganised manufacturing, the only segment that recorded Growth in employment is the Own Account Manufacturing Enterprises (OAMEs) which are basically one person enterprises meaning self-employed who do not hire any labour and mostly employ family labour.
According to the NSSO survey on Unincorporated Non-agricultural Enterprises (excluding construction) total employment in unregistered manufacturing increased from 34.8 million in November 2010 to 36.04 million in 2015-16, a meagre increase of 1.24 million in five years. The rise has been higher in OAMEs to the tune of 1.84 million.
Perhaps the more important fact is employment declined in establishments that are relatively larger in size within the unregistered segment and employ one to ten hired workers, have employed 0.67 million less workers during the same period.
Therefore, the rise in employment in the organised manufacturing sector was primarily driven by contractualisation and in the unorganised segment, employment increase was accompanied by fragmentation of productive activities.
The situation has further worsened because of demonetisation and introduction of GST, causing suffocating effects on the unorganised segment of the economy that employs 92.8 per cent of India’s workforce.

The world of work is changing rapidly. The rise of automation and Artificial Intelligence is leading to job losses in some sectors, while creating new opportunities in others. The gig economy is also becoming increasingly popular, as people look for more flexibility in their work arrangements.

These changes are having a significant impact on the employment landscape. In this ARTICLE, we will explore some of the key trends in employment, and discuss how they are affecting workers and businesses alike.

Job growth

The global economy is expected to grow at a slower pace in the coming years. This will lead to slower job growth, as businesses invest less in new projects and hire fewer new employees. However, there are some sectors that are expected to continue to grow, such as healthcare, technology, and education.

Job losses

The rise of automation and artificial intelligence is leading to job losses in some sectors. For example, manufacturing jobs are being lost to robots, and call center jobs are being lost to chatbots. These job losses are likely to continue in the coming years, as technology continues to advance.

Unemployment

The unemployment rate is expected to remain relatively high in the coming years. This is due to the combination of slower job growth and job losses. The unemployment rate is likely to be highest among young people and those with low levels of education.

Underemployment

Underemployment is a situation where people are working in jobs that do not use their skills or education. Underemployment is likely to increase in the coming years, as more people are unable to find jobs that match their qualifications.

Wage growth

Wage growth is expected to remain low in the coming years. This is due to the combination of slower job growth and a large pool of unemployed workers. Wage growth is likely to be lowest among low-wage workers.

Income inequality

Income inequality is the gap between the rich and the poor. Income inequality is expected to continue to grow in the coming years. This is due to the combination of slower wage growth and the concentration of wealth in the hands of a few.

Occupational segregation

Occupational segregation is the separation of men and women into different occupations. Occupational segregation is expected to continue to decline in the coming years. This is due to the increasing number of women in the workforce and the growing number of women in traditionally male-dominated occupations.

Flexible work arrangements

Flexible work arrangements are work arrangements that allow employees to work from home, have flexible hours, or take breaks throughout the day. Flexible work arrangements are becoming increasingly popular, as employees look for more balance between their work and personal lives.

Work-life balance

Work-life balance is the ability to balance one’s work and personal life. Work-life balance is becoming increasingly important, as employees are working longer hours and feeling more stressed. There are a number of things that businesses can do to help employees achieve work-life balance, such as offering flexible work arrangements and providing paid time off.

Mental health in the workplace

Mental health in the workplace is a growing concern. Mental health problems, such as anxiety and depression, are common among workers. Mental health problems can lead to absenteeism, presenteeism, and turnover. Businesses can help to improve mental health in the workplace by providing training on mental health awareness and providing Resources for employees who are struggling with mental health problems.

Diversity and inclusion

Diversity and inclusion are important for businesses. Diversity refers to the variety of people in a workplace, including people of different races, ethnicities, genders, sexual orientations, and abilities. Inclusion refers to the acceptance and respect of all people in the workplace. Diversity and inclusion can lead to a number of benefits for businesses, such as increased innovation, improved decision-making, and a more positive work Environment.

The future of work

The future of work is uncertain. The rise of automation and artificial intelligence is likely to lead to significant changes in the way we work. It is important for businesses to start thinking about how they will adapt to the changing world of work.

In conclusion, the world of work is changing rapidly. Businesses need to be prepared for the changes that are coming. By understanding the key trends in employment, businesses can make informed decisions about how to adapt to the changing world of work.

What are the trends of employment in the future?

The future of employment is uncertain, but there are some trends that are likely to continue. One trend is the increasing automation of jobs. This means that many jobs that are currently done by humans will be done by machines in the future. This could lead to job losses in some sectors, but it could also create new jobs in other sectors.

Another trend is the increasing Globalization/”>Globalization-3/”>Globalization of the economy. This means that companies are increasingly Outsourcing jobs to other countries where labor is cheaper. This could lead to job losses in some countries, but it could also create new jobs in other countries.

Overall, the future of employment is uncertain. However, there are some trends that are likely to continue, such as the increasing automation of jobs and the increasing globalization of the economy. These trends could lead to job losses in some sectors, but they could also create new jobs in other sectors.

What are the challenges of the future of employment?

The future of employment is likely to be challenging. One challenge is the increasing automation of jobs. This means that many jobs that are currently done by humans will be done by machines in the future. This could lead to job losses in some sectors, but it could also create new jobs in other sectors.

Another challenge is the increasing globalization of the economy. This means that companies are increasingly outsourcing jobs to other countries where labor is cheaper. This could lead to job losses in some countries, but it could also create new jobs in other countries.

Overall, the future of employment is likely to be challenging. However, there are some things that can be done to address these challenges. For example, governments can invest in education and training to help workers develop the skills they need for the jobs of the future. Companies can also invest in Training and Development to help their employees stay ahead of the curve.

What are the opportunities of the future of employment?

The future of employment also offers some opportunities. One opportunity is the increasing demand for skilled workers. As the world becomes more complex, there is a growing demand for workers who have the skills and knowledge to solve complex problems. This could lead to new job opportunities in fields such as engineering, science, and technology.

Another opportunity is the increasing demand for creative workers. As the world becomes more interconnected, there is a growing demand for workers who can come up with new ideas and solutions. This could lead to new job opportunities in fields such as Marketing, advertising, and design.

Overall, the future of employment offers both challenges and opportunities. It is important to be aware of these challenges and opportunities so that we can prepare for the future of work.

Which of the following is not a factor that affects employment trends?
(A) Economic growth
(B) Technological change
(C) Population Growth
(D) The weather
Which of the following is a trend in employment in the United States?
(A) The number of jobs in manufacturing is decreasing.
(B) The number of jobs in service industries is increasing.
(C) The number of jobs in the technology sector is increasing.
(D) All of the above.
Which of the following is a reason for the decline in manufacturing jobs in the United States?
(A) The rise of automation
(B) The outsourcing of jobs to other countries
(C) The decline of the manufacturing sector
(D) All of the above.
Which of the following is a reason for the increase in service sector jobs in the United States?
(A) The growth of the economy
(B) The aging population
(C) The rise of the service sector
(D) All of the above.
Which of the following is a reason for the increase in technology sector jobs in the United States?
(A) The growth of the technology sector
(B) The rise of the Internet
(C) The demand for skilled workers
(D) All of the above.
Which of the following is a challenge facing the future of employment?
(A) The rise of automation
(B) The decline of the manufacturing sector
(C) The aging population
(D) All of the above.
Which of the following is a potential solution to the challenge of automation?
(A) Retraining workers for new jobs
(B) Providing income support for displaced workers
(C) Investing in education and training
(D) All of the above.
Which of the following is a potential solution to the challenge of the aging population?
(A) Increasing the retirement age
(B) Providing more support for caregivers
(C) Investing in elder care
(D) All of the above.
Which of the following is a potential solution to the challenge of the decline of the manufacturing sector?
(A) Investing in infrastructure
(B) Supporting small businesses
(C) Promoting innovation
(D) All of the above.
Which of the following is a potential solution to the challenge of the rise of the service sector?
(A) Investing in education and training
(B) Providing more support for small businesses
(C) Promoting innovation
(D) All of the above.