SOIL Report 2011 - ACCESS Development Services

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Livelihoods of the Poor 19of employment in the unorganized sectorindicates a dualism in the manufacturingsector: concentration of value-additionand employment in very large firms (morethan 500 workers with relatively high wages)and the very small firms (less than 20 workerswith relatively low wages), leaving aconspicuously ‘missing middle’. A similardualism is observed in the tertiary sectors.Trade, hotels and restaurants, constructionand community services which generatethe bulk of the employment in serviceshave low productivity, low wages, and arelargely informal (World Bank 2010), whilethe highly productive and highly wagedIT-enabled services (ITES) and financeemploy only 6 million workers (out of alabour force of 400 million). 22.2.1. Employment growthby statusThe annual employment growth in 1993–2004 was 1.9 per cent, a decline from 2.1 percent in the previous decade (1983–93).When we look at the latter half of the decade,the annual growth was higher, at 2.3 percent (between 1999–2000 and 2004–05).However, most of this growth was in thesubsidiary (part-time) employment and inself-employment in the rural areas. Selfemploymentis in fact often an indicator ofunderemployment or distress employment,to estimate the percentage of workers in informal (orunorganized) economy. However, by official definitionemployment in the government or establishmentsemploying more than 10 workers is ‘organized’; allworkers who do not fall in this are in the ‘unorganized’.The official government estimates put the percentageof unorganized workers at 93 per cent while otherestimates based on NSSO (1999–2000) give figures forinformal sector between 86–89 per cent. This descriptionof informal sector is given on p. 47 of the WorldBank (2010) report on employment cited earlier inthe text.2The World Bank report from which these numbersare drawn states that their report is based on freshresearch by a team of Indian economists and WorldBank staff. Their researchers used the thick rounds ofNSSO surveys from 1983 to 2004–05, reports from theAnnual Survey of Industries, information from LabourBureau of Government of India and Informal SectorModules of NSSO (see p. 2 for further details).as remuneration from self-employment isin many instances lower than from casuallabour. Growth of employment for principal(full-time) workers actually sloweddown, and unemployment increased.There was almost no employment growthin the manufacturing and formal sectors.The increase in employment in the formalservice sector (ITES) and financial sectorsare the main source of growth—has no visibleimpact because they employ relativelyfew workers.The result of India’s growth throughthe 1990s to 2005 was that the share of theorganized sector as an employer declinedsubstantially (Ghose 2010). Surplus labourwas being absorbed into the unorganizedsector, which was able to sustain jobs dueto a healthy growth, but this was at the costof job quality and security. An increasingproportion of overall jobs were either in theunorganized sector (so informal by definition),or casual jobs within the organizedsector, adding to the number of workers in‘vulnerable employment’. 3The recent release of NSSO 66th Round(July 2009–June 2010) data shows a sharpdeceleration in the total numbers employed,from an annual rate of around 2.7 per cent inthe previous five-year period to only 0.8 percent in the last five years 4 (see Figure 2.2 5 ).The biggest factor in the decline ingrowth relates to women’s self-employment,but male employment growth shows a sharp3The ILO defines workers in vulnerable employmentas the sum of own-account workers and contributingfamily workers. They are less likely to have formal workarrangements, and are therefore more likely to lackdecent working conditions, adequate social securityand ‘voice’ through effective representation by tradeunions and similar organizations. Vulnerable employmentis often characterized by inadequate earnings,low productivity and difficult conditions of work thatundermine workers’ fundamental rights.4This discussion draws heavily from C.P.Chandrasekar and Jayati Ghosh’s article, ‘LatestEmployment Trends in NSSO’ in Business Line,12 July 2011.5All charts in this section are from C.P.Chandrasekar and Jayati Ghosh’s article, ‘Latest EmploymentTrends in NSSO’ in Business Line, 12 July2011.
20 State of India’s Livelihoods Report 2011deceleration as well. There is a decelerationin employment growth for both, urban aswell as rural areas, although it is sharper inthe rural areas, and applies to the agricultureand non-agriculture sector. The rateof increase for non-agricultural employmenthalved, for all workers taken together.Once again the drop is the maximum forfemale workers but as Figure 2.3 shows,there has been a decrease in the growth ofnon-agricultural employment even amongmale workers.Self-employment has decreased forboth men and women, and the decline isFigure 2.2: Rates of growth of total employmentSource: Chandrasekar and Ghosh (2011, Chart 1).Figure 2.3: Rates of growth of non-agricultural employmentSource: Chandrasekar and Ghosh (2011, Chart 2).
Page 2 and 3: State of India’s Livelihoods Repo
Page 4 and 5: State of India’s Livelihoods Repo
Page 6 and 7: ContentsList of TablesList of Figur
Page 8 and 9: List of Tables1.1 Growth rate of Gr
Page 10 and 11: List of Figures1.1 Pattern of GNP a
Page 12 and 13: List of Boxes1.1 India a country of
Page 14 and 15: List of Abbreviations3PLADBAEPSAICT
Page 16 and 17: List of AbbreviationsxvMKSSMoEFMoRD
Page 18 and 19: PrefaceACCESS has been bringing out
Page 20 and 21: Prefacexixbring out yet another vol
Page 22 and 23: AcknowledgementsA lot of work, ener
Page 24 and 25: State of India’sLivelihoods 2011:
Page 26 and 27: State of India’s Livelihoods 2011
Page 40 and 41: Livelihoods of the PoorIt is now co
Page 44 and 45: Livelihoods of the Poor 21significa
Page 46 and 47: Livelihoods of the Poor 23last two
Page 48 and 49: Livelihoods of the Poor 25Figure 2.
Page 50 and 51: Livelihoods of the Poor 27If person
Page 54 and 55: Livelihoods of the Poor 31Table 2.3
Page 56 and 57: Livelihoods of the Poor 33home-base
Page 58 and 59: Livelihoods of the Poor 35(13.4 mil
Page 60 and 61: Livelihoods of the Poor 37on their
Page 62 and 63: Livelihoods of the Poor 39Early exp
Page 64 and 65: Livelihoods of the Poor 41(Chintan
Page 66 and 67: Livelihoods of the Poor 43A study b
Page 68 and 69: Livelihoods of the Poor 45systemati
Page 70 and 71: Livelihoods of the Poor 47and sanit
Page 72 and 73: Livelihoods of the Poor 49dispropor
Page 76 and 77: Livelihoods of the Poor 53make an i
Page 78 and 79: Livelihoods of the Poor 55and sanit
Page 80 and 81: Reflections onLivelihoods Policies3
Page 82 and 83: Reflections on Livelihoods Policies
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Reflections on Livelihoods Policies
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State as the LargestLivelihoods Pro
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Private Industry andServices—What
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Private Industry and Services—Wha
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Potential andPossibilities6.1. Intr
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Potential and Possibilities 131and
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Potential and Possibilities 137get
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Potential and Possibilities 139welf
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Potential and Possibilities 145SN C
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Potential and Possibilities 147infr
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Potential and Possibilities 149Saxe
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About the Editorsand ContributorsTh
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