Labour Bureau's new report indicate layoffs of casual & contract workers in Q1 of 2017-18

Labour Bureau's new report indicate layoffs of casual & contract workers in Q1 of 2017-18


The declining trend in organized sector employment (i.e. in establishments employing 10 or more workers) continued in the first quarter of 2017-18. The sixth round of the Quarterly Report on Employment Scenario in selected sectors (as on 1st July, 2017), which was released in February this year, confirms this.

The Labour Bureau’s latest report says that the net number of jobs created in the 8 major sectors of the economy was 64 thousand in the first quarter of 2017-18 viz. between 1st April, 2017 and 1st July, 2017. However, in the last quarter of 2016-17, the net number of workers who got jobs in these 8 sectors was 1.85 lakhs, which is roughly thrice the recent figure.

As per the latest Quarterly Employment Survey (QES) report, although the employment of regular workers increased by 1.48 lakhs in the first quarter of 2017-18, nearly 64 thousand contract workers and 23 thousand casual workers lost their jobs in this period. Please consult table-1 for further information.
 
The estimated employment of self-employed persons grew by 3,000 in the first quarter of 2017-18 as compared to a rise by 15,000 in the last quarter of 2016-17.   

Table 1: Estimated change in number of employees in 8 sectors by nature of job (in lakh)
 
Table 1 QES April to June 2017

Source: 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 

Since 1 April, 2016, the Indian economy created 4.8 lakh additional 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 first quarter of 2017-18, the number of casual workers who lost their jobs in the manufacturing sector and accommodation & restaurant sector were 72 thousand and 1,000, respectively. In transport and IT/ BPO sectors, no new jobs for casual workers were created. In the construction sector, trade sector, education sector and health sector, the number of casual workers who got new jobs were 12 thousand, 8 thousand, 6 thousand and 24 thousand, respectively.

Similarly, in the same period (as mentioned above) the number of contract workers who lost their jobs in the manufacturing sector, construction sector, trade sector and health sector were 54 thousand, 2 thousand, 4 thousand and 8 thousand, respectively. In accommodation & restaurant and IT/ BPO sectors, no new jobs for contract workers were created. In the transport sector and education sector, the number of contract workers who got new jobs were 1,000 and 3 thousand, respectively.

Between 1st April, 2017 and 1st July, 2017, about 90 thousand new regular jobs were created by the education sector and 39 thousand such jobs originated in the manufacturing sector. However, in the transport sector, the number of regular workers who lost their jobs was 5 thousand during this span.

It needs to be mentioned that 65.73 percent of sample units covered under the QES were in urban areas and the rest 34.27 percent units were in rural areas. Further, 97.13 percent of units or establishments surveyed for the latest QES were registered and the rest 2.87 percent were unregistered ones.

About the 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 July 2017 to September 2017 at the national level.

Out of 11,179 units, about 11,157 units canvassed were common to both rounds of QES i.e. previous (with reference date as 1st April, 2017) and present (with reference date 1st July, 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.


References:

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 

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 

Quarterly Employment Survey: 87,000 manufacturing sector jobs lost in April-June 2017, The Indian Express, 19 February, 2018, please click here to access

Manufacturing sector reported loss of 87,000 jobs from April to June 2017: Labour Bureau data, Scroll.in, 19 February, 2018, please click here to access
 
Job Growth Plummets, Says New Govt. Report -Subodh Varma, Newsclick.in, 19 February, 2018, please click here to access  
 

Image Courtesy: Inclusive Media for Change/ Shambhu Ghatak




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