Economic Survey: Despite growth, formal sector job shrinks

India needs to improve labour laws to create better, safe and well-paying jobs, says the Economic Survey 2015-16

GN Bureau | February 26, 2016


#Arun Jaitely   #Budget Session   #Economic Survey  


The Economic Survey 2015-16 has highlighted the need to create enough good jobs that are safe and pay well, and encourage firms and workers to improve skills and productivity.

Expressing concern on the lack of job growth, the report has pointed out that jobs in formal sector have gone down “possibly due to increased use of contract labour.” The survey also stressed that the challenge of creating good jobs of India should be seen as a challenge of creating more formal sector jobs that can guarantee workers’ protection.

According to the survey while 42 lakh new establishments were set up between 1989 and 2010, only 1.05 crore new jobs were created during the period, of which 37 lakh or just 35 percent were in the formal sector.

Hinting at the possible reason for the growth in contract labour, the survey highlighted that medium sized formal sector manufacturing firms have reported labour regulations to be a significant barrier to growth, specifically the dismissal norm under the Industrial Disputes Act and the cumbersome nature of compliance with labour regulations.

The survey further reports that the number of contract workers has increased from 12 percent of all registered manufacturing workers in 1999 to over 25 percent 2010 on account of firms’ attitude to negotiate with labour regulations just to boost their production without facing any kind of labour unrest.

Comments

 

Other News

A walk down the rich history of Ayurveda

The Indic Quotient: Reclaiming Heritage through Cultural Enterprise By Kaninika Mishra Bloomsbury India, 230 pages, Rs. 499    Over the past decade, India has seen a significant rise in passion for enterprise as well as pride in her

Is China gearing up for prolonged conflict with India?

International observers will keenly watch the Chinese Communist Party Central Committee meeting next month. The central committee is the highest organ of the CCP with a mandate to execute the decision of the National Congress which is convened once every five years.   Besides economy, r

TRP-driven model bred irresponsibility: Sudhir Chaudhary

News profession is organic in nature, requires responsibility and discipline, and there is no room for mistake. To maintain high standards of accuracy you need discipline and hygiene in the newsroom. Sudhir Chaudhary, editor in chief of Zee News, Zee Business and Wion, has said that a TRP-driven business m

This Mumbai NGO empowers children with skills

When Dharmendra Pandey, a fruit-seller had to leave Mumbai after the imposition of the lockdown during the Covid-19 pandemic, and return to his village in Uttar Pradesh, he was staring at economic uncertainties ahead. Little did he know that his 16-year-old son, Mahavir, had acquired skills that would come

Masks: Awareness: near-total, compliance: half-way

Wearing a face mask is the first line of defence against the novel coronavirus, along with maintaining social distance and frequently washing hands with soap. More than six months after the outbreak of Covid-19, nearly 90 percent of people in India have become aware of the necessity of wearing a face mask,

Covid-19: Daily recoveries cross 1 lakh mark, new cases far fewer

Is India finally gaining an upper hand over the Covid-19 pandemic? After weeks of new cases hitting 90,000-plus every day, the tide seems to be turning, as the number came down to 75,083 on Tuesday, and the recoveries were not only higher than that but crossed the 1 lakh mark too. The countr

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter