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 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.
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The employment landscape is constantly changing, with new trends emerging all the time. It can be difficult to keep up with the latest developments, but it’s important to stay informed in order to make informed decisions about your career.
Here are some of the most important employment trends to watch in 2023:
The job market outlook is positive. The unemployment rate is low and job openings are high, which means that there are plenty of opportunities for job seekers.
The labor force participation rate is declining. This means that fewer people are working or looking for work. This could be due to a number of factors, such as retirement, disability, or caregiving responsibilities.
The underemployment rate is rising. This means that more people are working in jobs that don’t match their skills or education. This could be due to a number of factors, such as the decline of manufacturing jobs or the rise of the gig economy.
Job openings are increasing. This means that there are more jobs available than there are people to fill them. This could be due to a number of factors, such as the aging population or the growth of the economy.
Labor turnover is increasing. This means that more people are changing jobs than in the past. This could be due to a number of factors, such as the rise of the gig economy or the desire for more flexibility and work-life balance.
Wage growth is increasing. This means that workers are earning more Money than in the past. This could be due to a number of factors, such as the tight labor market or the rising cost of living.
Job satisfaction is declining. This means that workers are less happy with their jobs than in the past. This could be due to a number of factors, such as the increasing demands of work or the lack of opportunities for advancement.
Employee engagement is declining. This means that workers are less involved and committed to their jobs than in the past. This could be due to a number of factors, such as the increasing use of technology or the lack of meaningful work.
Workplace culture is changing. The traditional workplace hierarchy is being replaced by a more collaborative and egalitarian culture. This is due to a number of factors, such as the rise of millennials and the increasing diversity of the workforce.
Diversity and inclusion are becoming more important. Employers are realizing that a diverse workforce is not only good for business, but it’s also the right thing to do. This is leading to a number of initiatives aimed at increasing diversity and inclusion in the workplace.
Employee retention is becoming more challenging. The tight labor market means that employers are having to work harder to keep their employees. This is leading to a number of initiatives aimed at increasing employee retention, such as offering more competitive salaries and benefits.
Talent management is becoming more strategic. In order to attract and retain top talent, employers need to have a well-defined talent management strategy. This includes identifying and developing key talent, as well as SUCCESSION planning.
Learning and development is becoming more important. In order to stay ahead of the curve, employees need to be constantly learning and developing new skills. This is leading to a number of initiatives aimed at providing employees with opportunities for learning and development.
Organizational change is becoming more common. The pace of change in the business world is accelerating, which means that organizations are constantly having to change and adapt. This is leading to a number of initiatives aimed at helping organizations manage change effectively.
Mergers and acquisitions are becoming more frequent. The global economy is becoming increasingly interconnected, which is leading to more mergers and acquisitions. This can have a significant impact on employees, as they may be laid off or transferred to a new company.
Automation and Artificial Intelligence are changing the nature of work. Automation and artificial intelligence are being used to automate a number of tasks that were previously done by humans. This is leading to job losses in some industries, but it’s also creating new opportunities in other industries.
The future of work is uncertain. The pace of change in the world of work is accelerating, which makes it difficult to predict what the future of work will look like. However, it’s clear that the future of work will be different from the past, and that employees will need to be adaptable and willing to learn new skills in order to succeed.
These are just some of the most important employment trends to watch in 2023. By staying informed about these trends, you can make informed decisions about your career and prepare for the future of work.
What is the future of work?
The future of work is uncertain, but there are some trends that are likely to continue. These include the rise of automation, the gig economy, and the need for lifelong learning.
What are the challenges of the future of work?
The challenges of the future of work include the need to adapt to new technologies, the potential for job displacement, and the need for workers to be more flexible and adaptable.
What are the opportunities of the future of work?
The opportunities of the future of work include the potential for new and innovative jobs, the ability to work remotely, and the chance to learn new skills.
What are the skills that will be in demand in the future?
The skills that will be in demand in the future include critical thinking, problem solving, creativity, and Communication.
How can I prepare for the future of work?
You can prepare for the future of work by developing your skills, staying up-to-date on new technologies, and networking with people in your field.
What are the benefits of working remotely?
The benefits of working remotely include the ability to have a flexible schedule, the chance to work from anywhere in the world, and the potential to save money on commuting costs.
What are the challenges of working remotely?
The challenges of working remotely include the potential for distractions, the lack of social interaction, and the difficulty of managing time.
How can I be successful working remotely?
You can be successful working remotely by setting up a dedicated workspace, establishing a routine, and staying connected with your team.
What is the gig economy?
The gig economy is a labor market characterized by short-term contracts or freelance work as opposed to permanent jobs.
What are the benefits of the gig economy?
The benefits of the gig economy include the flexibility to work when and where you want, the ability to choose your own projects, and the potential to earn more money.
What are the challenges of the gig economy?
The challenges of the gig economy include the lack of job security, the potential for income instability, and the difficulty of getting benefits.
How can I be successful in the gig economy?
You can be successful in the gig economy by building a strong portfolio, networking with other freelancers, and managing your time effectively.
What is lifelong learning?
Lifelong learning is the ongoing acquisition of knowledge and skills throughout one’s life.
What are the benefits of lifelong learning?
The benefits of lifelong learning include the ability to stay up-to-date on new technologies, the chance to learn new skills, and the potential to improve your job prospects.
How can I learn new skills?
There are many ways to learn new skills, including taking classes, reading books, watching Videos, and practicing.
What are the best ways to stay up-to-date on new technologies?
The best ways to stay up-to-date on new technologies include reading industry blogs, attending conferences, and networking with other professionals.
Which of the following is not a factor that affects employment trends? (A) The economy (B) The weather (C) The population (D) The government
Which of the following is a current employment trend? (A) The number of jobs in the healthcare industry is increasing. (B) The number of jobs in the manufacturing industry is decreasing. (C) The number of jobs in the service industry is increasing. (D) All of the above.
Which of the following is a reason for the increase in the number of jobs in the healthcare industry? (A) The aging population (B) The increase in chronic diseases (C) The increase in the number of people with health insurance (D) All of the above.
Which of the following is a reason for the decrease in the number of jobs in the manufacturing industry? (A) The rise of automation (B) The Outsourcing of jobs to other countries (C) The decline in demand for manufactured goods (D) All of the above.
Which of the following is a reason for the increase in the number of jobs in the service industry? (A) The increase in the number of people who are working (B) The increase in the demand for services (C) The increase in the number of businesses (D) All of the above.
Which of the following is a challenge that employers are facing? (A) The lack of qualified workers (B) The high cost of labor (C) The changing needs of workers (D) All of the above.
Which of the following is a way that employers are addressing the challenge of the lack of qualified workers? (A) Offering higher wages (B) Providing more training (C) Recruiting from a wider pool of candidates (D) All of the above.
Which of the following is a way that employers are addressing the challenge of the high cost of labor? (A) Automating tasks (B) Outsourcing jobs (C) Hiring temporary workers (D) All of the above.
Which of the following is a way that employers are addressing the challenge of the changing needs of workers? (A) Offering flexible work arrangements (B) Providing more benefits (C) Investing in employee development (D) All of the above.
Which of the following is the most important factor in determining employment trends? (A) The economy (B) The government (C) The population (D) The technology