labour issues in indian labour market
DESCRIPTION
Indian labor Market :Consists of 430 million workers in 2004-05, growing 2% annually, with a stable worker-population ratio of 40%. Lower level of women’s participation in workforce (28%) – perhaps an underestimate. Low level of open unemployment (3.1%) – high level of disguised unemployment (or under-employment), mostly in rural areas and in agriculture. Child labour’s share in workforce declining – yet quite large in absolute numbers, at 13 million in 2001.TRANSCRIPT
“Labour is not an issue in the Indian job market”
Is it true or just a myth?
SAJNA FATHIMA, SMBS , MGU
Indian Labour market scenario
Consists of 430 million workers in 2004-05, growing 2% annually, with a stable worker-population ratio of 40%.
Lower level of women’s participation in workforce (28%) – perhaps an underestimate.
Low level of open unemployment (3.1%) – high level of disguised unemployment (or under-employment), mostly in rural areas and in agriculture.
Child labour’s share in workforce declining – yet quite large in absolute numbers, at 13 million in 2001.
SAJNA FATHIMA, SMBS , MGU
Real scenario
For almost 460 million working-age Indians — who are poised to become the world’s largest labour force by 2030 — huge employment deficits still remain. Most of their jobs are casual with low productivity.
Though, opportunities for regular formal employment are increasing, the benefits of these gains are enjoyed by only a minority of Indians, and reveal a widening inequality and the fragility of India’s social protection.
SAJNA FATHIMA, SMBS , MGU
Major issues in Indian Labour market
Child labour
Lack of skilled labour
Lack of equity in payments
Trade Unions
Labour market regulations
SAJNA FATHIMA, SMBS , MGU
Labour market structure
Labour market consists of 3 sectors.
Rural workers constitute over 60% of the workforce.
Organized sector employs 8% of the workforce, producing 40% of GDP. But its employment share declining.
Thus, urban informal sector is the growing sector – represents the residual.
SAJNA FATHIMA, SMBS , MGU
Morgan Stanley’s research results
India’s track record in terms of creating productive jobs has been slow so far.
One of the key issues stifling productive job growth is labour market regulations in the country.
In addition, multiplicity of laws, rigidities in the system and trade unions play a major role in holding back India's labour market environment.
SAJNA FATHIMA, SMBS , MGU
India Labour and Employment 2014 Report
Takes stock of India's labour markets, examining the progress reforms as well as deep challenges ahead.
Its central message: India needs a responsive, fair, and comprehensive labour and employment policy for sustainable and inclusive development.
SAJNA FATHIMA, SMBS , MGU
Thank you
SAJNA FATHIMA, SMBS , MGU