Employment generation dipped to 6-year low in 2015: Labour Bureau
Even as job creation has been one of the priority areas for the Narendra Modi government, employment generation has actually fallen to a six-year low of 1.35 lakhs in 2015...
Even as job creation has been one of the priority areas for the Narendra Modigovernment, employment generation has actually fallen to a six-year low of 1.35 lakhs in 2015, the data from the Labour Bureau has revealed, highlighting the government’s humongous pending task to reap the much-touted demographic dividend.
In 2014, 4.21 lakh of new employments were created, while the figure was 4.19 lakh for 2013.
The Labour Bureau, which compiles data every quarter on eight selected sectors — textiles including apparels, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handloom/powerloom — also found that the October-December period of the last year was the worst fourth quarter in the last seven calender years in terms of employment generation.
The decline in job creation in 2015 could be attributed to steep fall in the number of jobs in labour-intensive areas such as leather, automobiles, gems and jewellery, transport and handlooms/powerlooms.
RP Yadav, chairman and managing director, Genius Consultants, said: “For the year 2016, thankfully a good monsoon has been predicted; so agriculture-related industries will have conducive environment for employment creation. However, I do not see a promising growth rate in infrastructure as well as manufacturing sectors. IT/ITeS and telecom segments will garner commendable employment avenues. The overall hiring scenario this year will be slightly better than in 2015.”
Though the textiles sector, where employment is largely seasonal, posted positive employment growth during the October-December period of the last year, that was not enough to create overall additional jobs, as the other seven sectors covered by the bureau posted negative job growth during the period. The Labour Bureau conducted the latest survey for two months. The data is based on a sample size of just 1,936 and needs improvement to capture the jobs scenario better.
“Employment in the eight sectors has decreased by 20,000 during the quarter ended December 2015 over September 2015. The highest increase is observed in the textiles including apparel sectors by 37,000, whereas all other sectors experienced declining trend in employment. IT/BPO experienced maximum decline by 14,000 followed by automobiles 13,000, metal by 12,000, gems and jewellery by 8,000, leather by 7,000, handloom/powerloom by 2,000 and 1,000 in the transport sector during the period,” the Labour Bureau said.
Creation of jobs has been one of the priority areas for the government. To ensure the ease of doing business, the government has already embarked on a massive labour reform initiative by merging 44 extant Acts into four codes.
The latest labour data showed that in the direct category of workers, employment has decreased by 9,000 while for the contract category of workers, it has fallen by 11,000 during the quarter ended December 2015 alone.
Employment in exporting units has increased by 44,000, whereas in non-exporting units, it has decreased by 64,000. During the one year period ended December 2015, employment has increased by around 135,000. During the July-September period, employment increased by 134,000.
The Labour Bureau has been conducting a series of quarterly quick employment surveys since January 2009 to study the impact of global economic slowdown on employment in selected sectors.