Unemployment

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Labour Bureau, an attached office of the Ministry of Labour & Employment has released the results of the second annual employment & unemployment survey conducted in the country for the period 2011-2012. During the survey, data has been collected from a sample of 1,28,298 households, out of which 81,430 households are in the rural sector and the remaining 46,868 households in the urban sector.

According to the Report on Second Annual Employment-Unemployment Survey 2011-12,

http://labourbureau.nic.in/rep_1.pdf,

http://labourbureau.nic.in/rep_2.pdf,

http://labourbureau.nic.in/press_n.pdf:

• Based on the survey results, 50.8 per cent or majority of the households are found to be having self employment as the major source of income under agricultural and non-agricultural activities.

• At all India level, 48.6 per cent persons are estimated to be self employed under the usual principal status (UPS)* approach followed by 19.7 per cent persons under wage/salary earners and rest 31.7 per cent persons under casual labourers category.

• In the rural areas, 11.1 per cent households are estimated to be having regular/wage salary earning as major source of income.

• In the urban areas, 42.3 percent households are estimated to be having regular wage/salary earnings as the major source of income followed by 34.4 per cent households under self employment category.

• The Labour Force Participation Rate (LFPR)** is estimated to be 52.9 per cent under the usual principal status (UPS) approach at All India level.

• In the rural sector the LFPR is estimated to be 54.8 per cent as compared to 47.2 per cent in the urban sector under the UPS approach.

• Female LFPR is significantly lower as compared to male LFPR under the usual principal status approach. At All India level, female LFPR is estimated to be 25.4 per cent as compared to 77.4 per cent in male category.

• The Worker Population Ratio (WPR)*** is estimated to be 50.8 per cent at All India level under the UPS approach.

• The female WPR is estimated to be 23.6 per cent at All India level under the UPS approach as compared to the male WPR of 75.1 per cent.

• The unemployment rate**** is estimated to be 3.8 per cent at All India level under the UPS approach.

• In rural areas, unemployment rate is 3.4 per cent whereas in urban areas, the same is 5.0 per cent under the UPS approach.

• Despite relatively low LFPR, the unemployment rate is significantly higher among females as compared to males. At all India level, the female unemployment rate is estimated to be 6.9 per cent whereas for males, the unemployment rate is 2.9 per cent under the UPS approach.

• The survey results show that majority of the persons are employed in the primary sector. Under Agriculture, forestry and fishing sector, 52.9 per cent persons are estimated to be employed at All India level based on usual principal status approach.

• Under the tertiary or services sector, 27.8 per cent persons are estimated to be employed at All India level based on usual principal status approach.

• Under the manufacturing and construction sector i.e. the secondary sector, 19.3 per cent persons are estimated to be employed at All India level based on usual principal status approach.

—

Note:

* Usual Principal Status: The labour force is typically measured through the usual principal activity status (UPS) which reflects the status of an individual over a reference period of one year. Thus, a person is classified as belonging to labour force, if s/he had been either working or looking for work during longer part of the 365 days preceding the survey. The UPS measure excludes from the labour force all those who are employed and/or unemployed for a total of less than six months. Thus persons who work intermittently, either because of the pattern of work in the household farm or enterprise or due to economic compulsions and other reasons, would not be included in the labour force unless their days at work and unemployment totalled over half the reference year.

In the report, results are compiled for all the labour force measures namely usual principal status (UPS) approach, usual principal & subsidiary status (UPSS) approach, current daily status (CDS) approach and current weekly status (CWS) approach.

** Labour Force Participation Rate (LFPR) is defined as the number of persons (employed plus unemployed) in the labour force per 1000 persons

*** Worker Population Ratio (WPR) is defined as the number of persons employed per 1000 persons

**** Unemployment Rate (UR) is defined as the number of persons unemployed per 1000 persons in the labour force (employed & unemployed)

According to Key Indicators of Employment and Unemployment in India, 2009-10 (released on 24 June, 2011), Press Release, National Sample Survey Office, http://mospi.nic.in/Mospi_New/upload/Press_Note_KI_E&U
E_66th_English.pdf:

The indicators on Employment and Unemployment in India in the 66th round of the survey are based on the Central Sample of 1,00,957 households (59,129 in rural areas and 41,828 in urban areas) surveyed from 7,402 sample villages in rural areas and 5,252 urban blocks spread over all States and Union Territories except in (i) interior villages of Nagaland situated beyond five kilometres of a bus route (ii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year and (iii) Leh, Kargil and Poonch districts of Jammu and Kashmir.

1. Distribution of Usual Status (ps+ss) workers according to employment status

• At the national level, among all the workers, about 51.0 per cent were ‘self-employed’, about 33.5 per cent were ‘casual labour’ and 15.6 percent were ‘regular wage/salaried’ employee.

• Among the workers in the rural areas, about 54.2 per cent were ‘self-employed’, about 38.6 per cent were ‘casual labour’ and 7.3 percent were ‘regular wage/salaried’ employee.

• Among the workers in the urban areas, about 41.1 per cent were ‘self-employed’, about 17.5 per cent were ‘casual labour’ and 41.4 percent were ‘regular wage/salaried’ employee.

2. Industry-wise distribution of workers according to usual status (ps+ss)

• In rural areas, nearly 63 per cent of the male workers were engaged in the agricultural sector while in the secondary and tertiary sectors nearly 19 per cent and 18 per cent of the male workers were engaged. There was a higher dependence of female workers on agricultural sector: nearly 79 per cent of them were engaged in agricultural sector while secondary and tertiary sectors shared 13 per cent and 8 per cent of the female workers, respectively.

• The industry-wise distribution of workers in the urban areas was distinctly different from that of rural areas. In urban areas the share of the tertiary sector was dominant followed by that of secondary sector while agricultural sector engaged only a small proportion of total workers for both male and females. In urban areas, nearly 59 per cent of male workers and 53 per cent of the female workers were engaged in the tertiary sector. The secondary sector employed nearly 35 per cent of the male and 33 per cent of the female workers. The share of urban workforce in agriculture was nearly 6 per cent of male and 14 per cent for female workers.

3. Wage Rates of Regular Wage/Salaried Employees and Casual Labourers

• In urban areas, the average wage/salary was Rs. 365 per day and for the rural areas it was Rs. 232. In the rural areas, average wage/salary earnings per day received by male regular wage/ salaried employees was Rs. 249 and for females it was Rs. 156, indicating the female-male wage ratio as 0.63. In urban areas, male wage rate was Rs. 377 against the female wage rate of Rs. 309, indicating female-male wage ratio as 0.82.

• Wage rates (per day) for casual labour in works other than public works in rural areas was Rs. 93 and in urban areas it was Rs. 122. In the rural areas, average wage/salary earnings per day received by male casual labours engaged in works other than public works was Rs. 102 and for females it was Rs. 69 while in urban areas, the wage rates for casual labours in work other than public works was Rs. 132 for males and Rs. 77 for females.

• In rural areas, wage rates (per day) for casual labour in public works other than MGNREG public works was Rs. 98 for males and Rs. 86 for females. For casual labour in MGNREG public works, wage rate (per day) in rural areas was Rs. 91 for males and Rs. 87 for females.

Note: Three reference periods used in NSS surveys are (i) one year, (ii) one week and (iii) each day of the reference week. Based on these three periods, three different measures of activity status are arrived at. The activity status determined on the basis of the reference period of one year is known as the Usual Status (US) of a person, that determined on the basis of a reference period of one week is known as the Current Weekly Status (CWS) of the person and the activity status determined on the basis of the engagement on each day during the reference week is known as the Current Daily Status (CDS) of the person. In US approach, there are two indicators viz. one based on principal activity called Usual Principal Status (ps) and other based on both principal and subsidiary activities taken together called US (ps+ss). The unit of measurements in case of US and CWS is persons and in case on CDS, it is person days.

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