MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE. No.36/RN/Ref./July/2017

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1 MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE No.36/RN/Ref./July/2017 For the use of Members of Parliament NOT FOR PUBLICATION 1 CURRENT EMPLOYMENT SCENARIO: CHALLENGES AHEAD Prepared by Shri Pradosh Panda, Additional Director ( ) and Shri Sanjiv Kumar, Research Officer of Lok Sabha Secretariat under the supervision of Shri Atul Kaushik, Additional Secretary, Smt. Kalpana Sharma, Joint Secretary and Shri C.N. Sathyanathan, Director. reference The Reference note is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the text.

2 CURRENT EMPLOYMENT SCENARIO: CHALLENGES AHEAD India is a vast country with a population of 1.3 billion people. According to the National Sample Survey Office, a labour force survey conducted in , the number of employed persons were crore, out of which 82.7% (39.14 crore) used to work in unorganised sector 1. The informal or unorganised sector consists of units engaged in the production of goods and services with the primary objective of generating employment and incomes. Whereas the formal or organised sector consists of activities where employment is of regular nature and social security benefits are provided by the employer. As per available sources, the majority of workers in the country have been working in informal or unorganised sector. The details of workers in different sectors as on 1April, 2016 are given below:- Sector-wise percentage distribution of Self Employed & Employees* S. No. Sector Employment (in lakh) (%) share in Employment Self Employed Employees Total Self Employed Employees 1 Manufacturing Construction Trade Transport Accommodation & Restaurant IT/ BPO Education Health Total * Annual Report , Ministry of Labour and Employment 1 Lok Sabha Unstarred Question No dated

3 2 Much more still remains to be desired in the field of employment in the country. The transit of multi-sectored economic development in the country has generated various resources for the employment. The economic growth and government initiatives have been creating new job avenues. But at the same time addressing unemployment has been a continuous goal of the government in India. As on , lakhs ( lakh male and lakh female) were registered job seekers in all the Employment Exchanges of our country out of which lakhs (37.68 lakh male and lakh female) added during During the year 2014, 3.39 lakhs (2.78 lakh male and 0.61 lakh women) have been provided the employment. 2 Reasons for unemployment 3 Various reasons can be accounted for unemployment in India. The most obvious reason is that there is a mismatch between the rate of growth and the corresponding generation of jobs. Our economy is generating less job per of unit of GDP or it has become less labour absorbent. In other words, the growth is capital intensive and not labour intensive. Such a scenario has the following implications: 1. More supply than demand: India has the largest number of young people in the world, adding nearly 10 million new workers to the workforce annually. The number of workers seeking jobs far outstrips supply of jobs. 2. Due to the mechanisation there is obvious decline in the requirement of manpower. 3. Large manufacturers are trimming their operations as the wages in India have been enhanced. With the rise of wages, MNCs are shifting work to cheaper destinations. 2 Annual Report , Ministry of Labour & Employment 3 The Economic Times dated

4 3 Current Scenario Minister of State for Labour and Employment made a statement on 12 April 2017 in the Rajya Sabha that as per the result of survey on employment and unemployment conducted by Labour Bureau during , the estimated unemployment rate for the persons aged 15 years and above on usual status basis in the country is 3.7per cent. 4 Going by same Minister's statement in Rajya Sabha earlier on 5 April 2017, the estimated number of unemployed persons aged 15 years and above on usual status basis in the country during and work out as 1.70 crore and 1.76 crore respectively. The State-wise details of job seekers, all of whom may not necessarily be unemployed, registered in various employment exchanges is at Annexure-I. 5 In view of the importance of timely and reliable data on employment, the Prime Minister has directed the Prime Minister s Office and concerned Ministries to come up with a solution to fill the long standing gap in the country s statistical architecture. Accordingly a task force has been created under the chairmanship of the Vice Chairman, NITI Aayog Dr. Arvind Panagriya with Labour Secretary Ms. Sathiyavathy, Secretary Statistics Dr. T.C.A. Ananth, Prof. Pulak Ghosh of NITI Aayog and Shri Manish Sabharwal (Member RBI Board) as members. The Task Force will recommend solutions which can be implemented in a time bound manner. The Prime Minister has directed that this task be expedited so that policies on employment can be formulated with a proper appreciation of impacts, based on credible data. 6 4 Rajya Sabha Unstarred question No dated Rajya Sabha Unstarred question No dated PIB Release dated

5 4 Initiatives to check unemployment: 7 1. Employment generation is a key priority of the Government. Government has focused on making employment opportunities accessible to unemployed persons. Government announced a booster package of Rs 6000 crores for the textile sector which is an employment intensive sector. In order to improve the employability of youth, around 20 Ministries run skill development schemes across 70 sectors. According to the data compiled by National Skill Development Agency (NSDA), number of persons skilled across various sectors were lakh and lakh during & (till Oct, 2015) respectively. 2. Government has taken various steps for generating employment in the country like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister s Employment Generation Programme (PMEGP) run by Ministry of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)-National Rural Livelihoods Mission (NRLM) scheme run by Ministry of Rural Development and National Urban Livelihoods Mission (NULM) run by Ministry of Housing & Urban Poverty Alleviation. The State-wise details of these schemes are at Annex-III, IV,V and VI. 3. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. 7 Lok Sabha Unstarred Question No. 682, dated

6 5 Individuals with prior learning experience or skills will also be assessed and certified under Recognition of Prior Learning (RPL). 4. Government has implemented the National Career Service (NCS) Project comprising a digital portal that provides a nation-wide online platform for jobseekers and employers for job matching in a dynamic, efficient and responsive manner and has a repository of career content. 5. A new scheme Pradhan Mantri Rojgar Protsahan Yojana has been initiated by the Ministry of Labour and Employment in the year for incentivising industry for promoting employment generation. Under this scheme employers would be provided an incentive to enhance employment where the Government will pay the employer s contribution of 8.33% Employee Pension Scheme (EPS) to new employees. In textiles (apparel) sector, the Government will also pay the 3.67% Employee Provident Fund (EPF) contribution of employers in addition to paying the 8.33% EPS contribution. Beside these Government is also implementing schemes like Make in India, Digital India, Skill India, Swacch Bharat Mission, Start-up India and Smart City Projects etc., which will further generate employment opportunities for the job seekers in the country.

7 Annexure-I State-wise detail of job seekers registered in employment exchanges in the country. (in thousand) Sl. No. State/UTs Number of Job Seekers (as on 31 December 2016) Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim* Tamil Nadu Tripura Uttarakhand Uttar Pradesh West Bengal

8 30 Andaman & Nicobar Chandigarh Dadra & Nagar Haveli Daman & Diu Lakshadweep Puducherry Grand Total Andhra Pradesh includes Telangana. Source: Lok Sabha Unstarred Question No.3782 dated

9 Annexure-II Unemployment Rate for persons aged 15 years & above. in per cent Sl. No. State/UTs Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttarakhand Uttar Pradesh West Bengal

10 31 A & N Islands Chandigarh Dadra & Nagar Haveli Daman & Diu Lakshadweep Puducherry All India Source: Lok Sabha Unstarred Question No.682 dated

11 Annexure-III State-wise Employment Generated under Prime Minister s Employment Generation Programme (PMEGP) Sl. No. State/UTs Estimated employment generated (No. of persons) (as on ) 1 Jammu & Kashmir Himachal Pradesh Punjab UT Chandigarh Uttarakhand Haryana Delhi Rajasthan Uttar Pradesh Bihar Sikkim Arunachal Pradesh Nagaland Manipur Mizoram Tripura Meghalaya Assam West Bengal Jharkhand Odisha Chhattisgarh Madhya Pradesh Gujarat* Maharashtra ** Andhra Pradesh Telangana Karnataka Goa Lakshadweep

12 31 Kerala Tamil Nadu Puducherry Andaman & Nicobar Islands Total * including Daman & Diu ** including Dadra & Nagar Haveli Source: Lok Sabha Unstarred Question No.682 dated

13 Annexure-IV State-wise Persondays Generated under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) Persondays generated (In lakh) till Sl. No. State /11/ Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Gujarat Haryana Himachal Pradesh Jammu And Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal Andaman & Nicobar Islands Dadra & Nagar Haveli Daman & Diu Goa

14 33 Lakshadweep Puducherry Total * including Daman & Diu ** including Dadra & Nagar Haveli Source: Lok Sabha Unstarred Question No.682 dated

15 Annexure-V State/UT-wise details of total number of candidates placed in jobs after training under Pt. Deen Dayal Upadhyaya Grameen KaushlyaYojana (DDU-GKY) No. State (Till Oct-2016) 1 Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Dadra & Nagar Haveli Delhi Goa Gujarat Haryana Himachal Pradesh Jammu And Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Mizoram Nagaland Odisha Pondicherry Punjab Rajasthan Sikkim Tamil Nadu

16 29 Telangana Tripura Uttar Pradesh Uttarakhand West Bengal Daman & Diu Lakshadweep Andaman & Nicobar Islands TOTAL Source: Lok Sabha Unstarred Question No.682 dated

17 Annexure-VI Annex referred to in reply to part (b) of Lok Sabha unstarred Question No. 682 due for reply on State-wise number of beneficiaries under SJSRY/ Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM) ( ) No. of beneficiaries No. of Number of No. of beneficiaries No. of Number of No. of beneficiaries No. of Number of assisted for setting beneficiarie Self-Help assisted for setting beneficiaries Self-Help assisted for setting beneficiari Self-Help Sl. Name of the up s provided Groups up provided Groups up es Groups No. States/Uts Individual/Group skill (SHGs) Individual/Group skill training (SHGs) Individual/Group provided (SHGs) micro enterprises training formed micro enterprises formed micro enterprises skill formed training 1 Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttarakhand Uttar Pradesh West Bengal

18 30 A & N Islands Chandigarh D & N Haveli Daman & Diu Delhi Puducherry Total Source: Lok Sabha Unstarred Question No.682 dated

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