Page 4 - CII Artha Magazine 2022
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Focus Story

        The                                                                                                                        40         39.2                                          Distribution of Working Age Population by Status (million)

                                                                                                                                               Worker Population Ratio (%)

        Employment                                                                                                                 38   35  35.8      33.9 34.1  35.9  34.7  35.3  38.2      198.3  228  90.6  98  91.7  101  380.5  427

        Challenge                                                                                                                  32      Rural  Source: PLFS Reports and CII Research  Total  Self-Employed  Source: PLFS Reports & CII Research  Total

                                                                                                                               Looking at the gender      agriculture and cottage                                 between Q1 and Q3FY22.
                                                                                                                               dynamics, we find that more   industries. The proportion of   THROUGH THE THREE    Second quarter was led by
                                                                                                                               women are entering not only   regular wage/salaried      ROUNDS OF THE QES         IT/BPO while third quarter
        C    reating job           strategies and suggestions for                                                              the labour force but also the   employees saw an increase in   SURVEY, THE NUMBER   was led by manufacturing in
                                   absorbing the surplus
                                                                                                                                                                                        OF WOMEN
                                                                                                                                                                                                                  employment generation.
             opportunities for those
                                                                                                                               workforce. There were 112
                                                                                                                                                          both rural & urban areas and
        who choose to work is      workforce in the productive                                                                 million women in the labour   for both males & females. At   EMPLOYED IN THE       As was with PLFS, women’s
        central to inclusive economic   process. Hence, this month,                                                            force in 2017-18, which rose   the same time, the proportion   SAMPLED FIRMS HAS   share in total employment
        growth.  An increase in job   the focus is on the                                                                      to 149 million in 2019-20.   of casual labour showed a   RISEN BY 9.2 LAKH         stood at 31.6 per cent in
        opportunities, in turn,    employment challenge. The                                                                   More importantly, the rise in   decline. This implies an                           Q3FY22 (99 lakh 39
        encourages more            spotlight is on the                                                                         WPR has been primarily     improvement in employment                               thousand employed). More
        working-age people to seek   labour-intensive MSME sector   GENERATING                                                 driven by women as women’s   quality. However, anecdotal                           women have entered into
        employment. This expands the   and emergence of new     ADEQUATE                                                       worker participation ratio   experience suggests that   more updated picture of the    self-employment.
        pool of potential workers, a   avenues for employment   EMPLOYMENT                                                     rose from 16.5 in 2017-18 to   during the pandemic, there  formal jobs scenario in the
        key input to faster economic   growth such as the gig                                                                  21.8 in 2019-20.           has been a rise in casual   country, which reflects the   With the above background
        growth. Given the importance   economy among others.    OPPORTUNITIES                                                                             workers which have given    impact of the pandemic as   in place, experts proffer
        of generating enough job   Before we dwell on these     REMAINS AN                                                     Moving to the employment   rise to a burgeoning gig    well. As per the results of   their insights on employment
        opportunities for the bulging   issues in detail, it is imperative   IMPERATIVE FOR                                                                                           the three rounds which have   opportunities created by the
        working age population, it   to provide a brief background   GROWTH                                                    status, it is evidenced that   economy.                been released so far, total   emerging gig economy
        would be useful to analyse,   on the latest set of                                                                     self-employment remains the   Apart from the annual PLFS   employment stood at 3.14   paradigm and the need to
        with the help of experts, the   employment numbers for                                                                 major source of employment   surveys, the quarterly    crore in the three quarters   scale up MSMEs for
        prevailing constraints to job   setting the context.   For collecting data on     However, a mere addition to          with close to 53 per cent of   employment survey (QES) was   led by the manufacturing   improving the jobs scenario
        creation and look at                                                                                                   the workforce, highlighting the                        sector. Further, net 6 lakh   in the country.
                                                              employment, the government   the labour force does not           importance of Indian       also started last year to give a   new jobs were created
                                                              has initiated many surveys in   imply being gainfully
                                                              the past which provide a    employed. Hence, a look at
                      Labour Force Participation Rates (%)    snapshot of the employment   the worker population ratio
          42                                                  levels in the economy, the   (WPR)  is more pertinent.                           Women in the Workforce (%)                      Total Employment as per QES Survey (in crores)
                                                    40.1      latest one being the annual   Worker population ratio has
          40                                                  PLFS (Period Labour Force   risen from 34.7 in 2017-18 to                                                 21.8               3.16
                                                 38.6         Survey) 2019-20.            35.8 in 2018-19 and finally to                                 17.6                              3.14
          38                   37.7  37.5                                                 38.2 in 2019-20. This rise has                   16.5                                            3.12
                37  36.8 36.9     36.9                        According to NSSO's latest   been particularly driven by                                                                     3.10
                                                              Periodic Labour Force Survey   rural areas where WPR rose
          36                                                                                                                               52.1          52.3           53.9               3.08
                                                              (PLFS) report, India’s labour   from 35 to 39.2 from 2017-18                                                                 3.06     3.08       3.11        3.15
                                                              force participation rate  rose   to 2019-20. This implies that
          34                                                                                                                                                                               3.04
                  2017-18        2018-19        2019-20       to 40.1 per cent in 2019-20   an increasing number of rural                 2017-18       2018-19        2019-20                     Q1 FY22    Q2 FY22     Q3 FY22
                                                              from 37.5 per cent in 2018-19,   young are getting work.
                             Rural  Urban  Total                                                                                                       Men  Women
                                                              implying an addition of 44                                                                                                                   Source: QES Survey
                        Source: PLFS Reports and CII Research  million to the labour force.                                                     Source: PLFS Reports and CII Research
        1  Ratio of the country’s labour force (whether employed or unemployed) to its total population
        2  Percentage of employed persons in the population

        04   ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY                                                                                                                                               ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY  05
                                                                                                                                                                                                                  QUARTERLY JOURNAL OF ECONOMICS
             MAY 2022                                                                                                                                                                                                          MAY 2022
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