BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA. Debasish Chaudhuri, Deputy Director General, Ministry of Labour and Employment

Transcription

1 BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA Debasish Chaudhuri, Deputy Director General, Ministry of Labour and Employment 1

2 Labour & Employment Statistics as components of Labour Market Information Labour and employment statistics are broadly considered as components of Labour Market Information which, interalia, includes information under the following heads; 1) Labour Force (composition, distribution) 2) Wages (benefits, compensations etc.) 3) Consumer Price Indices 4) Industrial Relations (Strike, lockout, closure etc) 5) Productivity 6) Welfare (ESIC, Provident Fund, providing shelters, insurance, education to child/ bonded labour etc.) 7) Working and living conditions of workers. 2

3 Labour Force Labour force of a country comprises of the persons who are either working (employed) or seeking or available for work (unemployed). It includes the unemployed, i.e., those who are not employed, but are seeking work. It excludes discouraged workers, i.e., those who have given up and are no longer looking for work. 3

4 Labour Force can be divided into four categories: Self employed workers, Wage and salary earners, Casual workers and Unemployed. 4

5 Economic Activity : Any activity resulting in production of goods and services that add value to national product is considered as an economic activity. Workers (or employed): Persons who are engaged in any economic activity constitute workers. Seeking or available for work (or unemployed): Persons who, owing to lack of work, had not worked but either sought work through any means are considered as those seeking or available for work or unemployed. 5

6 Indicators of Labour Force Labour Force Participation Rate (LFPR) LFPR is defined as the number of persons/ person-days in the labour force per 1000 persons/ person-days. Worker Population Ratio (WPR) WPR is defined as the number of persons/ person-days employed per 1000 persons/ person-days. 6

7 Proportion Unemployed (PU) PU is defined as the number of persons/ persondays unemployed per 1000 persons/ person-days. Unemployment Rate (UR) UR is defined as the number of persons/ persondays unemployed per 1000 persons/ person-days in the labour force (which includes both the employed and unemployed). 7

8 Main Sources of Labour & Employment Statistics Decennial population census conducted by Registrar General of India. Quinquennial Sample Surveys on Employment and Unemployment conducted by NSSO. Annual Employment and Unemployment Surveys conducted by Labour Bureau. Periodic Labour Force Survey (PLFS) by NSSO. Quarterly Quick Employment Survey (QES) by Labour Bureau. 8

9 Population Census Decennial population census is conducted by Office of Census Commissioner of India. India has now more that hundred years old uninterrupted tradition of population census undertaken at the interval of every ten years. The latest population census was completed in March 2011 : Total Population of India crores. Questions on the economic activity of the population are included in these census. Census provides information on the number of workers right up to the village level and upwards as well as classifies them into cultivators, agricultural labour, household industries and other workers. 9

10 NSSO Surveys on Employment & Unemployment Most comprehensive estimates of employment and unemployment are obtained through labour force surveys conducted by NSSO. These surveys are carried out following sound statistical procedures for collection and analysis of data. The Employment and Unemployment Survey (EUS) of the quinquennial rounds of NSSO is the major source of data pertaining to various characteristics of labour and employment. 10

11 NSSO Surveys on Employment and Unemployment (Contd./-) In these household surveys, detailed information pertaining to employment and unemployment are collected with the survey coverage for the entire country and labour force indicators classified on the basis of age, sex, education, level of living, industry of work, occupation of the worker etc. are generated once in a gap of 5 years. These surveys also provide estimates of average daily wages of the employees, employment in the informal sector and informal employment. Starting from NSS 27th round (Oct, Sept 1973) nine such surveys have so far been conducted by NSSO. The last survey in the series is the EUS of NSS 68th round (July 2011 June 2012). 11

12 NSSO Surveys on Employment and Unemployment (Contd./-) Mainly two major concepts are used in India: Usual Principal Status (UPS) Usual Principal and Subsidiary Status (UPSS) 12

13 NSSO Surveys on Employment and Unemployment (Contd./-) Usual Principal Status (UPS): It reflects the status of an individual over a reference period of one year. Thus a person is classified as belonging to labour force, if he/she had been either working or looking for work during longer part of the 365 days preceding the survey. The Usual Principal and Subsidiary Status (UPSS) concept was introduced to widen the UPS concept to include even those who were outside the labour force on the basis of the majority time criterion but had been employed during some part of the year on a usual basis. 13

14 Data Gaps & Limitations in NSSO Employment Unemployment Surveys Labour force surveys do not capture informal sector workers, home workers, child labour and bonded labour. Occupation-wise (hazardous and non-hazardous separately) and age-wise distribution of child labour estimates are not available. These data are required to be collected. Distribution of persons by number of days at work and total intensity of work during the reference week. Data on job-seekers, social security, average earnings, period of unemployment, hours of work are needed. Average earnings of self-employed and others with agriculture and non-agriculture sectors in order to measure productivity of workers. 14

15 Annual Employment Unemployment Survey (EUS) by Labour Bureau The onset of Global financial crisis in India induced the felt need of frequent and regular data on Labour and Employment and the nodal Ministry initiated necessary steps for the same. 15

16 Comparison of Employment Unemployment Survey of NSSO and Labour Bureau NSSO LB NSSO LB LB Round/ Year 66 th Rd nd EUS th Rd rd EUS th EUS Coverage All States/ UTs All States/ UTs All States/ UTs All States/ UTs All States/ UTs Sample size

17 Labour Force Parameters (in %) UPS approach Sector NSSO LB NSSO LB LB 66 th Rd 2 nd EUS 68 th Rd 3 rd EUS 4 th EUS LFPR WPR UR Rural Urban Total Rural Urban Total Rural Urban Total

18 Labour Force Parameters (in %) UPSS approach Sector NSSO LB NSSO LB LB 66 th Rd 2 nd EUS 68 th Rd 3 rd EUS 4 th EUS LFPR Rural Urban Total WPR Rural Urban Total UR Rural Urban Total

19 Periodic Labour Force Survey (PLFS) by NSSO In order to materialize the need for labour force statistics at more frequent time interval and to measure the quarterly changes in the indicators, the Periodic Labour Force Survey (PLFS) is proposed. 19

20 Periodic Labour Force Survey (PLFS) by NSSO (Contd ) Proposed PLFS would provide indirect estimates of Labour Force parameters as these estimates will be based on household survey. It will not provide estimates of distribution of employees across the industries/ sectors. Employment information in the country is provided by the enterprise based survey. 20

21 Quarterly Quick Employment Survey (QES) by Labour Bureau Consequence of Global economic slowdown in Indian economy demanded the requirement of change in employment data. Keeping in view the urgency of the data, it was decided to conduct these surveys in selected labour intensive and export oriented sectors which are more likely to be affected by the global economic slowdown. Labour Bureau has been conducting Quarterly Quick Employment Surveys (QES) to assess the changes in employment of direct and contract workers, export and non-export in eight selected sectors. 21

22 Quarterly Quick Employment Survey (QES) by Labour Bureau (Contd ) These sectors are as below:- 1. Textiles including apparels, 2. Metals, 3. Automobiles, 4. Gems & Jewellery, 5. Transport, 6. IT/BPO, 7. Leather and 8. Handloom/ Power loom 22

23 Quarterly Quick Employment Survey (QES) by Labour Bureau (Contd ) As per the report of the latest QES i.e. 28 th Quick Employment Survey, the employment decreased by 0.20 lakh during the period Oct, 2015 to Dec, 2015 at overall level. Overall estimated employment in all selected sectors has experienced a net addition of lakh starting from the first survey (October, 2008 to December, 2008) till the 28 th Survey (Oct, 2015 to 23

24 Data Gaps & Limitations in QES by Labour Bureau In case of some sectors the sampling frame is not exhaustive and up-to-date. The States/Centers are selected purposively keeping in view the manpower available with the Bureau for conducting survey quickly. The survey is being conducted only in the eight selected sectors of the economy likely to be affected more by slow down. The informal sector is not being covered except few units in Handloom /Power loom sector, due to non-availability of reliable and 24

25 Quarterly Quick Employment Survey (QES) by Labour Bureau (Contd ) Considering the acceptability and increase in demand of QES data, it is going to be revised to improve the methods as well as coverage so as to generate comprehensive information on the employment situation in the country. In revised QES, information on employment, gender, nature of employment (direct/ contract), type of ownership, social security benefits would 25

26 Quarterly Quick Employment Survey (QES) by Labour Bureau (Contd ) Only non-farm emplyment will be covered which is approximately 51% of the total employment. Eight sectors viz Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation & Restaurants and IT/BPOs are proposed to be covered which constitute nearly 80% of the total non-farm employment. 26

27 Quarterly Quick Employment Survey (QES) by Labour Bureau (Contd ) During the first year of the survey, sixth Economic Census frame will be used for selection of sample units. It is proposed to cover approx 10,000 units from eight selected sectors. As there is no frame available for size class 1-9 workers, it is proposed to carry out Area Fame Survey in some selected blocks/ villages to prepare the frame for this size class. 27

28 (Changed from Employment Exchange) 28

29 Employment Exchanges Background Government of India Policy framework Legislation Employment Exchange {(Compulsory Notification of Vacancies) Act, 1959} Covers establishments employing >25 workers State Governments Administration of Employment Exchanges Current Statistics Employment Exchanges 978 Job-seekers registered 59.7 million Largely manual processes 29

30 Context for change Workforce Complexion Demand for Skills by 2022, in crores Building, Construction & Real Estate 3.11 Retail 1.71 Transportation & Logistics 1.17 Beauty & Wellness 1.01 Others 4.92 Total Job creation Skill Based Job Matching Skill Demand Secondary and Tertiary Sectors Make In India Digital India Smart Cities Housing For All Swachh Bharat AMRUT 30

31 Landscape Transformation Information asymmetry Employers, Institutions, Job seekers Low IT usage Manual processes and reports Physical visits Focus on larger establishments > 25 workers HR issues Adequacy Capacity Building (Upskilling) Other challenges Jurisdictional issues Limited coverage 31

32 Enhanced Services Landscape Transformation Rich Database Candidates verified through national IDs PAN verified institutions Enhanced Reach Nationwide job openings Integration with private portals and SMS gateway Counselling Services Rich career content Onboarding of counsellors Training providers Availability of skilling courses 32

33 Delivery Channels Landscape Transformation PCs/Cyber Cafes 350 Mn internet users Mobiles/PDAs 210 Mn mobile internet users Help Desk/Call Centre 12*6, multi-lingual Common Service Centres 1 lakh+ centres Career Centres 900+ Employment Exchanges 100 Model Centres 33

34 National Career Service (Contd ) National Career Service aims at reaching out to people across the country, in particular the youth, through a welldesigned structure that comprises an ICT-based portal, a countrywide set-up of career centres, a multingual call centre, and a network of career counsellors. The chain of Common Service Centres across the country is another important channel through which NCS can reach far and wide. 34

35 National Career Service Portal The NCS Portal links job-seekers, employers, counselors and training providers, all through Aadhaar-based authentication. Registration is online and free of charge. The portal provides information on over 3000 career options from 53 key industry sectors from IT to Textiles, Construction to Automobiles, Pharma and much more. Job-seekers also have access to industry trends in a user-friendly way. 35

36 National Career Service (NCS) A common, centralized platform to provide a wide range of career related services Nationwide opportunities One stop platform for online services Rich career content Self assessment tools Onboarding of counsellors Right choice at right time 36

37 ECONOMIC CENSUS The scheme was launched by the Central Statistical Organization in 1976 To meet the long felt need for the availability of data in respect of unorganized non-agricultural sector of the economy. All enterprises engaged in economic activities - both agricultural and nonagricultural, except those engaged in crop production and plantation 37

38 6 th Economic Census Field work of Sixth Economic Census was conducted during January 2013 to April The provisional results of 6 th Economic Census were released in July, 2014 by Central Statistics Office, Ministry of Statistics and Programme Implementation. The final results of 6 th Economic Census are released in March,

39 Highlights of 6 th EC (Contd ) Enumeration Blocks of Population Census, 2011 were used as the primary geographical units for collection of data. Data for handicraft/handloom establishments were collected for the first time. Total number of establishments counted is about 58.5 million. Nearly 59.48% of the establishments belong to rural areas. 39

40 Highlights of 6 th EC (Contd ) About 18.44% of the establishments operate from outside household without fixed structure. About 1.71% of the establishments are engaged in handicraft/ handloom activities. Growth rate in number of establishments over Fifth EC (2005) is 41.79%. Total number of persons employed is about million with rural share of 40

41 Highlights of 6 th EC (Contd ) Percentage of hired workers is about 43.53%. Percentage of female workers is 25.17%. Growth rate in total employment over Fifth EC (2005) is 38.13%. 41

42 Employment issues and concerns at a glance : Approximately 12 million new entrants to labour force each year. Unemployment rates on the rise youth unemployment about 3 times adult unemployment rates. Most new employment in Informal segment and in self employment. Real wages declining. Fastest increasing share of employment in Construction sector. 42

43 Thank You! 43