Formal employment rises but less no. of regular jobs created in 2nd quarter of '17-18

Formal employment rises but less no. of regular jobs created in 2nd quarter of '17-18

The increase in organized sector employment (i.e. in establishments employing 10 or more workers) in the second quarter was much higher as compared to that in the first quarter of 2017-18. The seventh round of the Quarterly Report on Employment Scenario in selected sectors (as on 1st October, 2017), which was released in March this year, confirms this.

The Labour Bureau’s latest report says that during the period 1st April to 1st July, 2017-18, organized sector employment grew by 64 thousand in the 8 major sectors of the economy. As opposed to that, during the period 1st July to 1st October, 2017-18, new jobs created in the organized sector was 1.36 lakhs, which is more than twice the organized employment generated in the first quarter. It may be noted that in the last quarter of 2016-17, the net number of workers who got jobs was 1.85 lakhs, which is roughly 49 thousand greater than the recent figure.

As per the latest available Quarterly Employment Survey (QES) report, the employment of regular workers increased by 65 thousand in the second quarter as compared to 1.48 lakhs in the first quarter of 2017-18. In fact, the creation of regular jobs was lesser in the 2nd quarter of 2017-18 as compared to that in the 2nd quarter of 2016-17 (viz. 78 thousand).

Nearly 44 thousand contract workers and 23 thousand casual workers got new jobs between 1st July and 1st October, 2017-18. Please consult table-1 for further information.
 
The estimated employment of self-employed persons grew by 4,000 in the second quarter of 2017-18 as compared to a rise by 3,000 in the first quarter of the same year.   

Table 1: Estimated change in number of employees in 8 sectors by nature of job (in lakh)
 
Estimated Change in Employment in 8 sectors by nature of job

Source: Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st October, 2017, released in March 2018, Labour Bureau, Ministry of Labour & Employment, please click here to access
 
Since 1st April, 2016, the Indian economy created 6.16 lakh additional formal jobs over and above the base level total estimated employment of 205.22 lakh in the 8 selected sectors.

The recent QES report shows that during the second quarter of 2017-18, the number of casual workers who lost their jobs in the construction sector and education sector were 6 thousand and 5,000, respectively. In accommodation & restaurant sector, IT/ BPO sector and health sector, no new jobs for casual workers were created. In manufacturing sector, trade sector and transport sector, the number of casual workers who got new jobs were 27 thousand, 2,000, and 5 thousand, respectively.

Similarly, in the same period (as mentioned above) the number of contract workers who lost their jobs in the construction sector was 13 thousand. In accommodation & restaurant sector, no new jobs for contract workers was created. In manufacturing sector, trade sector, transport sector, IT/ BPO sector, education sector and health sector, the number of contract workers who got new jobs were 24 thousand, 2,000, 7 thousand, 6 thousand, 15 thousand and 3 thousand, respectively.

Between 1st July and 1st October, 2017-18, about 35 thousand new regular jobs were created by the manufacturing sector, 10 thousand by trade sector, 8 thousand by transport sector, 2,000 by accommodation & restaurant sector, 12 thousand by education sector and 7 thousand by the health sector. However, in construction and IT/ BPO sectors, the number of regular workers who lost their jobs were 4 thousand and 5 thousand, respectively.

It needs to be mentioned that 66.18 percent of sample units covered under the QES were in urban areas and the rest 33.82 percent units were in rural areas. Further, 97.09 percent of units or establishments surveyed for the latest QES were registered and the rest 2.91 percent were unregistered ones.

KLEMS database

From the KLEMS [Capital (K), Labour (L), Energy (E), Materials (M) and Services (S)] database version 2017, which has been published by the Reserve Bank of India (RBI) recently, one gets that the country experienced negative growth in employment to the tune of -0.16 percent in 2014-15 (over previous year) and -0.08 percent in 2015-16 (over previous year). The growth rates in employment in the years 2004-05, 2005-06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14 were 2.75 percent, 0.68 percent, 0.07 percent, 0.23 percent, 0.39 percent, 0.61 percent, 0.82 percent, 1.03 percent, -0.50 percent and 2.98 percent, respectively. Please consult chart-1 for further information.
 
Chart 1
 
Source: KLEMS database version 2017, please click here to access the database, which was released on 27th March, 2018
    
It may be noted that the current employment series of KLEMS makes use of all the different available sources of data on employment so as to obtain a smooth and long-time series, which captures the relevant information provided by these sources. 

About the QES report

The QES estimates are based on surveys carried out in establishments having 10 or more persons (organized 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 October 2017 to December 2017 at the national level.

Out of 11,179 units, about 11,143 units canvassed were common to both rounds of QES i.e. previous (with reference date as 1st July, 2017) and present (with reference date 1st October, 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.

The draft Report of the Task Force on Improving Employment Data (2017) of NITI Aayog says that since majority of the enterprises in India are small (employing less than 10 workers), the sample covered under the QES only represents about 1.37 percent of all enterprises or 21.15 percent of non-agricultural employment. The QES in reality covers around 2.77 crore workers out of a total of 47 crore or more workers.

Measuring employment

While replying (on 5th March, 2018) to a unstarred question (no. 1588) by Smt. Kamla Devi Paatle in the Lok Sabha, the Minister of State (Independent Charge) for Labour and Employment Shri Santosh Kumar Gangwar said that following the recommendations of Task Force on Employment chaired by Arvind Panagariya, the Annual Employment-Unemployment Survey of the Labour Bureau has been discontinued.

The Employment-Unemployment Survey (EUS) of the National Sample Survey Office (NSSO), on the other hand, is considered as the most comprehensive survey providing labour force statistics in the country. It was first conducted during the 9th round of the National Sample Survey (NSS) in the year 1955. The current format of quinquennial surveys started in the 27th round in the year 1972-73, based on the recommendations of the ML Dantwala committee report. Since 1972-73 eight quinquennial surveys have been undertaken with the last one happening in the year 2011-12. The EUS survey is carried out over an entire year to account for seasonal variation in employment.  

The draft Report of the Task Force on Improving Employment Data (2017) from NITI Aayog mentions that the NSSO's EUS is being replaced by the Periodic Labour Force Survey (PLFS).


References:

Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st October, 2017, released in March 2018, Labour Bureau, Ministry of Labour & Employment, please click here to access
 
Quarterly Report on Employment Scenario in selected sectors (new series) as on 1st July, 2017, released in February 2018, 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, 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
 
Report on “Measuring Productivity at the Industry Level – The India KLEMS Database”, 27 March, 2018, Reserve Bank of India, please click here to access

Draft Report of the Task Force on Improving Employment Data (2017), NITI Aayog, please click here to access

Labour Bureau's new report indicate layoffs of casual & contract workers in Q1 of 2017-18, News alert by Inclusive Media for Change dated 19 February, 2018, please click here to access 

Casual Employment Worst Hit After Note Ban, Shows New Report, News alert by Inclusive Media for Change dated 2 January, 2018, please click here to access
 
Forget job growth, employment in India actually fell between 2014 and 2016 -Manas Chakravarty, Livemint.com, 30 March, 2018, please click here to access
 
Job creation more than doubles to 136,000 in July-Sept 2017: Labour Bureau -Somesh Jha, Business Standard, 13 March, 2018, please click here to access  

 
Image Courtesy: Inclusive Media for Change/ Shambhu Ghatak
 
   



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