Fall in self-employment even as economy grows
Updated: Apr 22, 2013 03:09:43pm
New Delhi, Apr 22 (KNN) The number of self-employed people has come down to 50.7 per cent from 56.4 per of the total workforce between 2004-05 and 2009-10, raising concerns over fall in job creation even as the economy was growing at a rapid pace.
“In absolute numbers, the self-employed decreased from 258.4 million to 232.7 million during this period while regular salaried workers rose from 69.7 million to 75.1 million. The ranks of casual labour rose from 129.7 million to 151.3 million. Collectively, the total workforce increased from 457.8 million to 459.1 million, a rise of just 0.3 per cent over this period,” according to a report of the National Sample Survey Organisation (NSSO).
“Some 20 months after hotly contesting data on UPA-1's "jobless growth", the government has admitted to lack of substantial increase in employment,” said a Times of India report.
Limited flexibility in "managing" the workforce, high cost of complying with labour regulations, poor skill development and a vast unorganized sector are seen as reasons for dissatisfactory growth in self-employment.
Considering that most of the self-employed come from the SME sector, what do the self-employment figures imply?
According to the labour bureau, in the rural sector, 457 out of 100 persons are self-employed and 435 out of 1000 are casual labourers. The remaining 108 employed persons belong to the regular wage/salaried class in the rural areas.
The labour bureau survey further revealed that 455 persons out of 1000 persons employed are employed in agriculture, forestry and fisheries group at the overall level, followed by 89 persons in the manufacturing group, 88 persons in the wholesale and retail trade, etc, 84 persons in the community services group and 75 in the construction group of industries.
Stating that the NSSO data exhibited a shift in employment status, the ministry said in the period 2004-05 to 2009-10, the percentage of regular salaried workers increased from 15.2 per cent to 16.4 per cent and there was a bigger jump in casual labour from 28.3 per cent to 33 per cent. (KNN)
“In absolute numbers, the self-employed decreased from 258.4 million to 232.7 million during this period while regular salaried workers rose from 69.7 million to 75.1 million. The ranks of casual labour rose from 129.7 million to 151.3 million. Collectively, the total workforce increased from 457.8 million to 459.1 million, a rise of just 0.3 per cent over this period,” according to a report of the National Sample Survey Organisation (NSSO).
“Some 20 months after hotly contesting data on UPA-1's "jobless growth", the government has admitted to lack of substantial increase in employment,” said a Times of India report.
Limited flexibility in "managing" the workforce, high cost of complying with labour regulations, poor skill development and a vast unorganized sector are seen as reasons for dissatisfactory growth in self-employment.
Considering that most of the self-employed come from the SME sector, what do the self-employment figures imply?
According to the labour bureau, in the rural sector, 457 out of 100 persons are self-employed and 435 out of 1000 are casual labourers. The remaining 108 employed persons belong to the regular wage/salaried class in the rural areas.
The labour bureau survey further revealed that 455 persons out of 1000 persons employed are employed in agriculture, forestry and fisheries group at the overall level, followed by 89 persons in the manufacturing group, 88 persons in the wholesale and retail trade, etc, 84 persons in the community services group and 75 in the construction group of industries.
Stating that the NSSO data exhibited a shift in employment status, the ministry said in the period 2004-05 to 2009-10, the percentage of regular salaried workers increased from 15.2 per cent to 16.4 per cent and there was a bigger jump in casual labour from 28.3 per cent to 33 per cent. (KNN)
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