Casual employment worst hit after note ban, shows new report
In the 3 months period following demonetisation, most job cuts happened for casual workers. This has been confirmed by the Labour Bureau's latest Quarterly Report on Employment Scenario in selected sectors.
Although overall employment increased in the 8 major sectors of the economy by 1.85 lakhs between 1st January, 2017 and 1st April, 2017, employment of regular workers (1.97 lakhs) increased the most, followed by employment of contract workers (26,000 in nos.). Almost 53,000 casual workers lost their jobs in the same period. Please consult table-1 for further information.
The estimated employment of self-employed persons increased by 15,000 during the same duration.
Table 1: Estimated change in number of employees in 8 sectors by nature of job (in lakh)
Source: Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st April, 2017, released in December 2017, Labour Bureau, Ministry of Labour & Employment, please click here to access
It has been calculated by the latest Quarterly Employment Survey (QES) report that during the period 1 January, 2017 to 1 April, 2017, the number of casual workers who lost their jobs in manufacturing sector, construction sector, trade sector, transport sector, education sector and heath sector were 22 thousand, 9 thousand, 3 thousand, 5 thousand, 8 thousand and 7 thousand, respectively. In the accommodation & restaurant sector a meagre 1,000 new casual jobs were provided. No such new jobs were created by IT/BPO sector.
Similarly, during the same period (as mentioned above) the number of contract workers who lost their jobs in construction sector, transport sector, accommodation & restaurant sector and education sector were 8 thousand, 1 thousand, 3 thousand and 37 thousand, respectively. About 48,000 contract workers got new jobs in the manufacturing sector.
Between 1st January, 2017 and 1st April, 2017, about 66,000 regular jobs were created by the manufacturing sector and 46,000 such jobs originated from the education sector.
The latest QES estimates only provide a glimpse of the organised sector employment scenario and do not give any information about the extent of job creation in the unorganised sector (i.e. units employing less than 10 workers). Therefore, the impact of demonetisation on unorganised sector employment cannot be guessed from the latest report of Labour Bureau.
It needs to be mentioned that 71.14 percent of sample units covered under the QES were in urban areas and the rest 28.86 percent units were in rural areas. Further, 97.21 percent of units surveyed for the latest QES were registered and the rest 2.79 percent were unregistered ones.
About the report
The QES estimates are based on surveys carried out in establishments having 10 or more persons (organised sector) as identified by the Sixth Economic Census. The present QES covers 11,179 units (or establishments) in 8 sectors from all the states/ UTs in the country. The field work for data collection for the present QES was carried out during April 2017 to June 2017 at the national level.
Out of 11,179 units, about 10,594 units canvassed were common to both rounds of QES i.e. previous (with reference date as 1st January, 2017) and present (with reference date 1st April, 2017).
The eight sectors covered are manufacturing, construction, trade, transport, education, health, accommodation & restaurant and IT/BPO.
The estimates of the present QES are not directly comparable with the results of past 28 such Quarterly Quick Employment Survey, which were conducted till December 2015, on account of divergence in scope, coverage, methodology and concepts.
Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st April, 2017, released in December 2017, Labour Bureau, Ministry of Labour & Employment, please click here to access
Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st April, 2016, released in September 2016, Labour Bureau, Ministry of Labour & Employment, please click here to access
53 thousand casual jobs lost in Jan-Mar, overall employment up by 1.85 lakh, PTI, The Hindu Business Line, 31 December, 2017, please click here to access
Country's organised sector created 4 lakh jobs in 2016-17, The Times of India, 31 December, 2017, please click here to access
Note Ban Hurt Daily Wagers, Contractual Jobs, Shows Government's Own Survey -Somesh Jha, TheWire.in, 30 December, 2017, please click here to access
Image Courtesy: Himanshu Joshi