1575084995195_Labour-Force.pdf - EurekaWow | Indian Economic Development India\u2019s Labour Market during the 2000s \u2013 Jayan Jose Thomas(2012 Surveying

1575084995195_Labour-Force.pdf - EurekaWow | Indian...

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EurekaWow | Indian Economic Development 4 th Semester | B.A. Economics (H) India’s Labour Market during the 2000s Jayan Jose Thomas (2012) Surveying the Changes GDP in every sub-sector of the Indian economy accelerated during the second half of the 2000s; however employment growth in most sectors except construction declined. The paper examines the changes in Indian labour market from 1980-2010, focussing on the 2000s. It examines if the labour force is undergoing a modernisation process that would justify the rapidly growing GDP figures India is witnessing currently. Features of Modernisation: 1. Movement of „Surplus Labour‟ from traditional/informal (agricultural) to modern/formal sectors (Industrial) leading to rise in real wages in agricultural sector. 2. An improvement in the skill and level of education of the workforce, along with the emergence of new industries or sectors that demand higher labour skills. The paper finds that that much-delayed movement of the labour force away from agriculture has clearly begun in India. However, even after rise in educational levels the modernisation process is hitting a roadblock, given the slow rate of non-agricultural job generation. Section I: Broad Trends in Labour Absorption In 2008, Labour Participation Rate (LPR), indicating the proportion of population that is economically active (employed or actively seeking jobs) - was 56% in India as compared to 74% in China. There has been very little change in Workforce participation Rate (WPR) in India after the 1990s, where WPR is the proportion of population that is employed. Also, the trend of extremely low level of female population can be seen. Size of the workforce = WPR * Population according to the Census The number of labour in India has grown from 303 million in 1983 to 459 million in 2009-10. 1980s was a period of fast growth of non-agricultural employment in rural India leading to the rise in agricultural wages. Employment growth slowed sharply in the 1990s, especially in rural areas. There was a predominance of casual labour in the newly created employment opportunities. During the first half of the 2000s, employed increased, especially that of the self-employed. However the quality of workforce fell due to their average educational achievements. Wage inequalities increased. Employment sharply declined between 2004-05 and 2009-10, while the country‟s economic growth showed a distinct acceleration, clearly pointing out to what economists call jobless growth. New jobs were created at a rate lesser in the post reform period than in the pre-reform period.(5.3 million between 1993-94 and 2009-10 AND 6.8 million between 1983 and 1993) Section II: Jobless Growth Slow rate of employment generation in India between 2004 and 2009 Jobless Growth.
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