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CHAPTER
EMPLOYMENT GENERATION
SUMMARY SHEET
(Source: The office of the Registrar General of India and Census Commissioner had released ‘single
year age data’ for the 2011 Census, which refers to the number of people at each year of age in the
population).
Now, when we compare this with the other countries we see that the average age of the population
in India by 2020 is estimated to be 29 as against 40 years in USA, 46 years in Europe and 47 years in
Japan. In fact, during the next 20 years the labor force in the industrialized world is expected to
decline by 4%, while in India it will increase by 32%.
This poses a formidable challenge and a huge opportunity. To reap this demographic dividend which
is expected to last for next 25 years, India needs to equip its workforce with employable skills and
knowledge so that they can contribute substantively to the economic growth of the country.
2.5 Under-employment:
• It is a situation under which employed people are contributing to production less than they
are capable of.
• It can be in terms of time (visible under-employment) or type of work (invisible under-
employment).
• Part-time workers come under this category.
Labour force:
• Labor force (also called work force) is the total number of people employed or seeking
employment in a country or region. (Thus labour force constitutes of both employed and
unemployed).
• One is classified as ‘not in labour force’; if he or she was engaged in relatively longer period
in any one of the non-gainful activities or we can say those who are neither seeking nor
available for work.
On the broader level, there are two institutions measuring employment in India:
✓ Household surveys
✓ Enterprise surveys
✓ Administrative data
✓ Data from Government schemes
Note: All the above-mentioned sources are government conducted ones. There is one privately
held survey on employment by the Centre for Monitoring Indian Economy (CMIE).
The following section gives us an idea regarding the situation of employment in India:
• Of the 116 million Indians who were either seeking or available for work, 32 million were
illiterates and 84 literates.
• Among literates, unemployment rates were higher among the better qualified, highest of
all among the 7.2 million people with a technical diploma or certificate other than a degree.
• At all levels of education, unemployment rates were higher in rural than in urban areas.
• At every level of education, especially at the higher levels, female unemployment exceeded
male unemployment.
• The ‘unemployed’ included those who were not currently working but were seeking or
available for work, as well as those in marginal employment — meaning that they worked for
fewer than six months in the year preceding the Census — who were seeking or available for
work.
• Overall, India’s unemployment rate grew from 6.8 p.c. in 2001 to 9.6 p.c. in 2011, based on
official Census data.
• Unemployment grew faster for illiterates than for literates.
• In all, India had just 56 million graduates and post-graduates in 2011 and 12 million with a
technical certificate or diploma equivalent to a graduate or post-graduate degree.
• Half of these with the highest level of education were classified as “main workers”, meaning
that they worked for at least six months in the year preceding the Census.
Unemployment rate:
It is the percent of the labor force that is without work.
Unemployment rate = (Unemployed workers / Total Labour Force) * 100
Indian economy is such that a major portion of the population comes under the unorganized
sector. The data given below emphasizes this fact:
To understand what organized and unorganized sector is, we can study the key differences
between the two:
Benefits and perquisites Employees get add on benefits like Not provided.
medical facilities, pension, leave
travel compensation, etc.