Chapter IVing of ‘English Speaking and Personality <strong>Development</strong>’ classes. Most of these jobs are incentive-based,and continuation of work is subject to performance. Young boys and girls from lower socio-economicbackgrounds, who have lived in cities or small towns, and are educated up to Std X or XII, are ideal fordoing this kind of work.3. Business services, which have grown at over 20 per cent 3 , have been oneof the fastest growing industriesBusiness services engage over a third of the workforce in this sector. A deeper analysis shows that thissegment includes the types of services we see all around us. Around 10 per cent of the workers arewomen. Even as the employment share is higher for this sector, the GDP contribution is only around14 per cent of the total GDP of ‘Financial <strong>Services</strong>, Insurance, Real Estate and Business <strong>Services</strong>’. Thispoints to the relatively low productivity, compared with other financial services, real estate, computerrelated activities.Sectors in which livelihoods are increasing include security, maintenance, cleaning, recruitment, and otherssuch. Given the increase in outsourcing of basic services such as these, this segment has high livelihoodpotential. Business services include activities such as labour recruitment and provision of personnel (2.7per cent share of total employment in this sub-sector), security activities (16 per cent), photographicactivities (32 per cent), packaging activities, business brokerage activities, i.e. arranging for the purchaseand sale of small and photostat, secretarial services, which include telephone answering, stenographic,duplicating and mailing etc. engage about 2.6 per cent of the workers in this segment. <strong>Services</strong> suchas building-cleaning and industrial cleaning activities have a small share of employment at 0.8 per centcurrently. However they are likely to increase at a fast pace.An interesting feature of the employment pattern in this sector is that it is largely in the nature of regularemployment and self-employment, and workers are usually paid regular salaries or wages. There isalmost no casual labour in most of the business services sectors, which have a prominent share, whichis another positive for encouraging livelihoods in this sector.Training for secretarial work such as stenography, telephone operators etc., can be provided easily. Similarlyfor workers in cleaning and maintenance, basic orientation and grooming are good enough. For securityworkers, there are in-house trainings in most security agencies. However, some basic training for use ofarms might be required for senior personnel.The sector withthe highest GDPgrowth between1999 and 2005,Transport,Storage andCommunicationshas grown ataround 14 percent per annum.It ranks secondas per the LPPIof 8.36.While these jobs are mushrooming, there has to be a systematic approach to matching the jobs with thepotential workers. The profiles of persons for different jobs will vary based on the content of the jobsand therefore skills required. In all trades listed here, the task of linking with the job-market is crucial.Just training more and more workers to become typists does not necessarily ensure a better livelihoodfor them. A clear market identification exercise should be undertaken and based on that people shouldbe trained.4. With enhanced focus on infrastructure growth, the transport sector has togrow, and there will be an increasing demand for workers in this sector.The sector with the highest GDP growth between 1999 and 2005, Transport, Storage and Communicationshas grown at around 14 per cent per annum. It ranks second as per the LPPI of 8.36. Withinthis sector, the highest GDP share is that of road transport (60 per cent), followed by communications(25 per cent). The employment pattern is even more skewed with road transport employing over 843Banga 200684
Possibilities: Livelihood Opportunities and Potentialper cent and communications employing around 10 per cent of the workers in this sector, as shown inTable 4.3 below.Table 4.3: Employment in the Transport and Communications SectorNIC Code Sub-Sector Share of EmploymentSub-Sector60 Land Transport, Transport via pipelines 84.00%61 Water Transport 1.00%62 Air Transport 0.42%63 Supporting and auxiliary transport activities,Activities of travel agencies3.00%64 Post and Telecommunications 11.00%Source : NSS 62 nd RoundAs the data in the Table 4.4 shows, land transport (given as ‘other transport services’) requires the lowestcapital infusion to generate high labour value. Even as railway transport has a good labour-capital ratio,its share in the output is very low at around 10 per cent. This, compounded by the fact that employmentin the railways is generated by public sector activities, makes it a relatively insignificant driver oflivelihood generation.Table 4.4: Labour to Capital Ratios in Key Transport Sub-sectorsWage Share in TotalOutput ValueCapital Share inTotal Output ValueLabour to CapitalRatioCommunication 18.43% 57.98% 0.32Storage and Warehousing 32.32% 26.92% 1.20Other Transport <strong>Services</strong> 23.78% 14.10% 1.69Railway Transport <strong>Services</strong> 33.68% 18.89% 1.78A GDP growth rate of over 13 per cent per annum strengthens the case for livelihoods in this sectoralong with other factors such as a high Labour-Capital ratio of 1.69. Investments in road transport willhave a high employment effect, as for each investment the expenditure on labour with be higher by1.69 times. Till the year 2000, the productivity increases in transport have been marginal, and there isa likelihood that the workforce in this sector has increased substantially. For the period 1999-2000 to2004-’05, however, the productivity would have improved, as growth is high and employment elasticity islow at 0.35. Even as the employment growth rates in transport were high in absolute terms, the economicgrowth was so high that the elasticity was pushed down.The more agriculture and manufacturing grow, the more villages and small towns will be connectedwith the cities, and the higher therefore will be the role of road transport. Policy makers and livelihoodpractitioners need to recognise the role of road transport in creation of livelihoods, and address the issuesthat the current and growing livelihoods in the sector face. We need to also look at ways to enableworkers to have a more ‘enabled’ entry into such work, and build institutional systems for their accessto different types of services.There are two types of growing livelihoods within land transport that require attention: Drivers, whocould be self-employed or casual workers–these could be drivers of trucks, buses, taxis or non-motorisedvehicles such as cycle rickshaws; and support staff comprising helpers, cleaners, loaders, administrationstaffThe nature of work is such that a miniscule percentage of women are engaged in this sector. Indeed,given the work quality and schedules too many women cannot be encouraged for this work, except tosome extent for driving taxis in cities.Policy makersand livelihoodpractitionersneed to recognisethe role ofroad transportin creation oflivelihoods,and addressthe issues thatthe currentand growinglivelihoods inthe sector face.85
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ChapterPage NoForeword 6Preface 8Ab
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employment growth, these sectors we
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Chapter Iresponse, risks and shocks
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OverviewTable 1.2 Employment and Un
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Mona DikshitMona Dikshit has been a