Page 5 - 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

                                                                                           QUARTERLY JOURNAL OF ECONOMICS
 MAY 2022                                                                                               MAY 2022
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