diff --git a/Writerside/topics/Job-Crisis-in-India.md b/Writerside/topics/Job-Crisis-in-India.md index 59229fe..5addb68 100644 --- a/Writerside/topics/Job-Crisis-in-India.md +++ b/Writerside/topics/Job-Crisis-in-India.md @@ -1,10 +1,11 @@ # Job Crisis in India -- India's Labour Sector Problems -- Employment Data Debate -- India's Jobless Growth Issues -- Skill Development Issues -- Long-Term Solutions +- [India's Labour Sector Problems](#india-s-labour-sector-problems) +- [Employment Data Debate](#employment-data-debates) +- [India's Jobless Growth Issues](#jobless-growth-in-india) +- [Skill Development Issues](#skill-development-issues) +- [Long-Term Solutions](#long-term-solutions) +- [Employment Incentive Schemes](#employment-incentive-schemes-2024-25) ## India's Labour Sector Problems @@ -17,25 +18,391 @@ Manufacturing | 11.4% Services | 28.9% Constructions | 13.7% -While Agriculture GVA is stagnant, the problem is appearant that Agriculture is +While Agriculture GVA is stagnant, the problem is appearant that Agriculture is having Disguised Unemployment. -To enable movement of labour from the agriculture sector into manufacturing, i.e., enabling them the capacity to produce. +To enable movement of labour from the agriculture sector into manufacturing, i.e., enabling them the capacity to +produce. We need to have a good **Entrepreneurial Ecosystem** and **Viable Labour Sector Reforms**. -### Labour Sector Problems +### Archaic Labour Law -#### Archaic Labour Law - # Industrial Dispute Act, 1947 - # Factories Act, 1948 +1. Industrial Dispute Act, 1947 +2. Factories Act, 1948 +3. Contractual Labour (Abolition and Regulation) Act, 1970 These laws disguisly impose Liscence Raj, that limit growth in many ways. -Labour comes under **concurrent list**. Thus there are complexity with compliance of these laws. +Labour comes under **concurrent list**. +Various States and central Laws are applicable. +Thus, there is complexity with compliance of these laws. Less approach to Labour court. -Low Wage Economy +Contractual Labourers, without proper Enforcement of the contracts. + +> Temporary Employment +> - Unorganised Sector Employment +> - Lack of Social Security + +### Low-Wage Economy + +1. Poor Vocational Training/ Skill Development +2. Minimum Wage should be raised. +3. While having good GDP growth, it is not corresponding to Wage Growth, because the growth is coming from Capital + Intensive, not Labour Intensive. + +> **India Employment Report** +> +>Unemployment among educated youth is more than unemployment among the uneducated youth. + +### Youth Seeking Government Job + +1. Permanancy +2. Social Security +3. Better than a low-wage bluecoller job. + +### Major Labour Force is having Low Productivity and working in Low Productive Areas + +- Agriculture, Animal Husbandary, Fisheries +- Having disguised unemployment + +### Minimal Safety Protocol Missing in many Hazardous Sectors + +1. Life Threatening Diseases, like posioning, Carcinogen Intraction +2. Manual Scavenging + - Intestinal Problems, Skin Diseases, Pathogens + - Supreme Court in Kamladhar Gupta Case, Manual Scavenging is a complete violation of Article 14, 17, 21, 47 of the + Indian Constitution + - **Alanga, Gujrat** Ship Breaking Dock + - Labour Force comes in contact with Various Hazardous Chemicals. + +### Child Labourers + +1. Low Wages +2. Economic Hardship of Family +3. Kailash Satyarthi's , **Bachpan Bachao Mission** + +- Modern Day Slavery +- _Walk-Free Foundation's_ **Global Slavery Index** also pointed this. +- **Gurupad Swamy Community**, pointed rehabilitaion after rescuing is inddispensable. + +### Other Problems + +1. Multiplicity of Definition of Labour, Wages, Establishments in different Sectors. +2. Lack of Formalisation +3. Retrenchment and Hiring Policy. +4. Dwarfism of Companies +5. Lack of Institutional Governance + - No Statuary or Constitutional Body +6. Lack of Lok Adalat and LAbour Court + +> # Second Labour Law Commision +> Established by the Government of India on October 15, 1999 to bring about labour reforms. +> +> The commission was led by Ravindra Varma, a former Union Minister for Labour and a Gandhian. +> +> The commission submitted its report to Prime Minister Atal Bihari Vajpayee on June 29, 2002. +> +> # Three-tier system +> The commission recommended a three-tier system of Lok Adalats, Labour Courts, and the Labour Relations Commission. +> The Lok Adalats and Labour Courts would handle individual grievances and complaints. +> # Wages boards +>The commission recommended setting up wages boards to determine wage rates for workers in any industry. +> # Social security +> The commission believed that labour law legislation wasn’t enough to address employee social security issues. +> +> They recommended creating a National Policy on Social Security and a nationwide plan to achieve the goals outlined in +> the Indian Constitution. +> # Hire and fire +> The commission suggested amending Chapter VA of the Act to provide 60 days' notice for both retrenchment and closure. +> +> They also recommended making it possible to close down establishments with 300 or more workers and repealing Chapter +> VB. +> +> This would have essentially left almost 60% of the workforce to a "hire and fire" regime based on changing market +> demands. + +## Employment Data Debates + +_All Jobs are wage-labours, but all wage-labours aren’t Jobs._ + +### Employment Data Factors + +1. **Total Population** +2. **Working Age Population** + - People belonging to an age group of 15 to 59 years old are known to be of working age. + - Currently, 63% of the total population is in working age. + - About 88 crore. +3. **Work Population Rate** WPR + $$ + WPR = \frac{\text{Total Employed People}}{\text{Total Population}} + $$ + + --- | --- + Source | WPR + **PLFS** | 56% + +4. **Employment Rate** ER + $$ + ER = \frac{\text{Total Employed People}}{\text{Working Age Population}} + $$ +5. **Labour Force Participation Rate** LFPR + $$ + \text{LFP6R} = \frac{\text{Total Labour Force}}{\text{Working Age Population}} + $$ + > **Labour Force** includes people working or willing/looking for work. + > + **PLFS** 53% +6. **Unemployment Rate** UR + $$ + UR = \frac{\text{Number of Unemployed Persons}}{\text{Total Labour Force}} + $$ + > **Unemployed Person** includes people willing to work but not working. + > + --- | --- + Source | Unemployment Rate + **Periodic Labour-Force Survey** | 3.2% + **RBI's KLEMS** | 64 crore. + **Centre for Monitoring Indian Economy** | 9.2% + **India Unemployent Report** |? + +### How is Employment Data Calculated? + +National Sample Survey Organisation- MoSPI +Employment Surveys + +1. Household Surveys +2. Enterprise Survey- MSMEs +3. GST-Network Data +4. Labour Bureau Data +5. Adminstrative Data + 1. MCA21 Database + 2. EPFO Data + 3. Employee State Insurace Data + 4. NPS Data +6. Data from Governments Schemes + 1. MGNREGA + 2. PM Swanidhi + 3. MUDRA Scheme + +> **Surveys of Labour Bureau** +> +> Quaterly Employment Survey (Organised Sectors) +> +> Area Base Establishment Survey (Unorganised Sector) + +#### Periodic Labour Force Survey + +by Arvind Pangariya Panel +also suggested by TCA Annant Panel and Amitabh Kundu Panel + +- **Usual Status of Employment** + Data for last 365-day data +- **Current Weekly Data** for the last 7 days + +| **Indicator** | **2022-23** | **2021-22** | **2020-21** | **2019-20** | +|--------------------------------------|-------------|-------------|-------------|-------------| +| **Worker Population Ratio (WPR)** | 56.0% | 55.2% | 54.9% | 53.5% | +| **Unemployment Rate (Overall)** | 3.2% | 4.1% | 4.8% | 4.8% | +| **Youth Unemployment (15-29 years)** | 10.0% | 12.4% | 14.0% | 13.8% | +| **Female WPR (15+ years)** | 29.0% | 27.4% | 26.8% | 26.4% | +| **Male WPR (15+ years)** | 80.1% | 79.4% | 79.2% | 77.4% | +| **Rural WPR (15+ years)** | 57.8% | 57.1% | 56.9% | 55.2% | +| **Urban WPR (15+ years)** | 52.0% | 50.7% | 50.2% | 49.5% | +| **Formal Employment Share** | Increased | Increased | Stable | Stable | +| **Self-Employment (15+ years)** | 52.3% | 51.2% | 50.6% | 50.1% | +| **Casual Labour (15+ years)** | 24.9% | 25.5% | 26.1% | 25.9% | + + +**Worker Population Ratio (WPR) Increase**: The WPR for persons aged 15 years and above increased to 56.0% in 2022–23, +showing a consistent rise from previous years. + +**Unemployment Rate Decline**: The overall unemployment rate for individuals aged 15 years and above decreased to 3.2%, +continuing a downward trend from 4.1% in 2021–22. + +**Youth Unemployment**: The unemployment rate for the youth (aged 15–29 years old) has also declined, +dropping from 12.4% in 2021–22 to 10.0% in 2022–23. + +**Urban-Rural Disparity**: The report highlights the persistent disparity between urban and rural areas, +with rural areas showing a higher WPR compared to urban areas. + +**Gender Disparity**: While the WPR for women increased, it still remains significantly lower than that for men, +indicating ongoing gender disparities in the workforce. + +**Sectoral Employment Shifts**: The share of employment in agriculture continues to decline, +with more people moving into construction, manufacturing, and services sectors. + +**Formal vs. Informal Employment**: The report notes a gradual increase in formal employment, though informal employment +still constitutes a large portion of the workforce. + +**Impact of Education**: Higher educational attainment is associated with lower unemployment rates, emphasising the +importance of education in employability. + +**Self-Employment**: A significant proportion of the employed population remains in self-employment, particularly in +rural areas. + +**Policy Implications**: +The findings suggest a need for targeted policies to further reduce unemployment, especially among the youth and women, +and to support the transition from informal to formal employment. + +#### Others Suggestions of Pangaria Panel + +* Employment Index +* National Bussiness Register + +### Problems of Emploment Data + +Doesn’t calculate dropouts of EPFO + +## JobLess Growth in India + +1. The problem of Underemployment is much more than the problem of Unemployment. + + > **Underemployment** + > + > Though working, but still open for a part-time job. + > + > Wages aren’t proportional to skill aquired. +2. Urban Unemployment is much more than Rural Unemployment. +3. Low Productivity +4. Informal Sector +5. Low Skilled Workers +6. Extreme Competition from Eastern Asian Countries, i.e. China, Vietnam, Combodia. +7. Poor Enforcement of Contract. +8. **Vulnerability of Migrant Workers/Labourers** + High pressure on Municipalities, Railway + + +## Skill Development Issues + +Skill development in India faces several challenges that hinder the country's ability to fully capitalise on its +demographic dividend and meet the demands of a rapidly evolving global economy. +Some of the key issues include: + +### 1. **Mismatch Between Education and Industry Needs** + +- **Curriculum Irrelevance**: Many educational institutions offer outdated curricula that don't align with current + industry needs. + This creates a gap between the skills that graduates possess and what employers are looking for. +- **Lack of Practical Training**: The focus in education often remains on theoretical knowledge, with insufficient + emphasis on hands-on, practical skills that are directly applicable in the workplace. + +### 2. **Quality of Training** + +- **Insufficient Infrastructure**: Many training institutions, especially in rural areas, lack the necessary + infrastructure, including modern equipment and qualified trainers. +- **Trainer Quality**: There is a shortage of well-trained instructors who can deliver high-quality training. + Many + trainers themselves may not be up to date with the latest industry trends. + +### 3. **Access and Inclusivity** + +- **Urban-Rural Divide**: Skill development opportunities are often concentrated in urban areas, leaving rural + populations with limited access to quality training programs. +- **Gender Disparity**: Women often face cultural and societal barriers that limit their participation in skill + development programs, leading to lower employment rates for women in skilled professions. + +### 4. **Awareness and Perception** + +- **Low Awareness**: Many people, especially in rural areas, are unaware of the various skill development programs + available to them. + This limits enrollment in such programs. +- **Stigma Around Vocational Training**: There is often a societal preference for traditional academic education over + vocational training, which is seen as less prestigious. + +### 5. **Funding and Policy Implementation** + +- **Insufficient Funding**: Although the government has launched several initiatives for skill development, the funds + allocated are often insufficient to meet the large-scale demand. +- **Policy Gaps**: While there are many policies in place, their implementation is often inconsistent, leading to + inefficiencies and underutilisation of resources. + +### 6. **Technological Disruption** + +- **Rapid Technological Changes**: The pace of technological change is creating new job roles and making some skills + obsolete. + Training programs often struggle to keep up with these changes. +- **Digital Divide**: Limited access to technology and the internet in certain areas further exacerbates the challenge + of updating skills relevant to new-age jobs. + +### 7. **Placement and Employment Issues** + +- **Low Placement Rates**: Even after completing skill development programs, many trainees find it difficult to secure + jobs due to the mismatch between their training and the actual job market demands. +- **Underemployment**: Many skilled workers are underemployed, meaning they’re working in jobs that don’t fully + use their skills or offer adequate compensation. + +### 8. **Lack of Soft Skills** + +- **Communication and Interpersonal Skills**: Many graduates lack soft skills like communication, teamwork, and + problem-solving, which are increasingly important in the modern workplace. +- **Workplace Readiness**: Beyond technical skills, there is a gap in preparing individuals for the work environment, + including understanding workplace culture and expectations. + +### 9. **Regional Disparities** + +- **Variation Across States**: The quality and availability of skill development programs vary significantly from state + to state, leading to regional disparities in skilled workforce availability. + +### 10. **Private Sector Engagement** + +- **Limited Private Sector Involvement**: The private sector's involvement in skill development is often limited, + despite being a key beneficiary of a skilled workforce. + There is a need for stronger collaboration between the + government, educational institutions, and industry. + +## Long-Term Solutions + +1. Rejuvinate MSMEs +2. Upgrade Vocational Training Infrastructure +3. On-Demand Training Program +4. Manufacturing Sector should have Labour Intensive Approach +5. Mass Migration of Labrourers from Agriculture to Non-farming Sectors +6. Address problems mentioned in India Employment Report 2024 +7. Public Policy Reforms +8. Zero Tolerance for Child Labour + Pencil Portal -MoWCD +9. ILO Conventions + - 111: No discrimination at workplace + - 138: Minimum Age for Work + - 182: Child Labour should be discouraged +10. Social Security to: + - Gig Workers + - Domestic Workers +11. Labour Law Codes - Ravindra Verma Commissions + +## Employment Incentive Schemes 2024–25 + +The 2024 Union Budget introduced several key employment incentive schemes aimed at boosting job creation, particularly +for first-time employees and employers. +Here are the main highlights: + +**Wage Support for Freshers**: A direct benefit transfer scheme that provides one month's wage (up to ₹15,000) for +freshers entering the formal workforce. +This incentive is disbursed in three installments, supporting around 2.1 crore +youth. + +**Job Creation in Manufacturing**: This scheme incentivises job creation in the manufacturing sector by covering the +Employees' Provident Fund (EPF) contributions for both employers and employees during the first four years of employment +for new hires. + +**Support for Employers**: Employers receive a reimbursement of up to ₹3,000 per month for each new employee's EPF +contribution, benefiting up to 30 lakh youth. +This scheme is expected to drive significant employment growth across +various sectors. + +**Skill Development Initiatives**: The budget also announced a centrally sponsored scheme to skill 20 lakh youth over +the next five years, with a significant investment in upgrading Industrial Training Institutes (ITIs). + +**Internship Program**: +A large-scale internship program offering internships in 500 top companies to one crore youth over +five years, with monthly allowances and training costs covered by participating companies. + +These schemes reflect a comprehensive approach to enhancing employability and job creation in India, with a focus on +linking incentives directly to employment generation + +