Manufacturing growth has underpinned India’s economic performance: ILO

Southern Asia has created most of the new employment, with employment expanding by 13.4 million in 2016. The majority of this new employment was created in India

GN Bureau | January 17, 2017


#Industry   #Manufacturing   #ILO   #Economy  

Manufacturing growth has underpinned India’s recent economic performance, which may help buffer demand for the region’s commodity exporters, said an International Labour Organisation (ILO) report.

The report “World Employment Social Outlook - Trends 2017” said that economic growth in Asia and the Pacific has been relatively resilient, at 5.1 percent in 2016 and 5.0 percent anticipated in 2017. While buoyant – above 5 percent forecast over the next five years – and following annual average growth of 5.6 percent over the past decade, a slight easing of the region’s economic growth reflects, in part, ongoing readjustment to China’s “new normal” growth path. Eastern Asia’s growth has declined from 7.9 percent in 2010 to 4.6 percent in 2016 (4.5 percent forecast in 2017).

Despite this, China continues to prop up regional exports, but pressure is mounting for countries with high export dependence on China to diversify both products and export partners. In the midst of the transition, India has stepped up, achieving 7.6 percent growth in 2016, thus helping Southern Asia achieve 6.8 percent growth in 2016 (6.9 percent expected in 2017). This compares to 4.5 percent in South-Eastern Asia and the Pacific in 2016 (4.7 percent in 2017).

Accounting for nearly 60 percent of the global workforce, the Asia and the Pacific region’s net employment expanded by over 20 million in 2016, equivalent to growth of around 1.1 percent, with a similar expansion anticipated in 2017. Southern Asia has created most of the new employment, with employment expanding by 13.4 million in 2016, underpinned by population-driven labour force growth. The majority of this new employment was created in India.

Read: India a bright spot in world economy: KPMG

The ILO report said that total employment expanded by around 5 million in South-Eastern Asia and the Pacific, equivalent to growth of 1.6 percent, and is forecast to grow by another 4.5 million in 2017, with Indonesia and the Philippines accounting for the majority of employment growth in this sub-region. In Eastern Asia, employment is growing the least, at less than half a percentage point each year, largely as growth of China’s workforce starts to shrink.

The shape of employment growth reflects the structural transformation taking place in the region; that is, the transfer of capital and workers from low to higher value added sectors. Since 2008, employment in agriculture has been shrinking across each of the Asia and the Pacific sub regions, offset by expansion of employment in services and industry. These trends are expected to continue to different degrees over the next five years.

At the same time, however, low female labour force participation continues to be a major challenge for a number of economies within the region, particularly in Southern Asia. In fact, Southern Asia exhibits the third lowest female labour force participation rate of all regions globally, only behind the Arab States and Northern Africa. With only 28.5 percent of working-age women in Southern Asia active in the labour market, women are typically more reliant on their male counterparts as the main breadwinner of the household. At the same time, when women are in employment, they are more likely to be in vulnerable employment, particularly contributing family work (in 2016, as many as one in five women are contributing family workers, compared with less than 5 percent of males in Asia and the Pacific).

In 2016, some 81.7 percent of all employed women in Southern Asia were in vulnerable forms of employment, compared to 72.4 percent for their male counterparts. While the female vulnerable employment rate in South-Eastern Asia and the Pacific is also high, at 54.8 percent, the gap between men and women is less marked.

Read: ILO World Employment Social Outlook - Trends 2017


 

Comments

 

Other News

HPCL, Tata Steel among National CSR Award 2020 winners

Hindustan Petroleum Corporation, HDFC, Tata Steel and Tech Mahindra are among the winners and the recipients of honourable mentions in the National CSR Awards 2020 announced by the ministry of corporate affairs (MCA) on Thursday. The MCA instituted the annual National Corporate Social Respon

India’s tree lovers get together for a nation-wide tree festival

A good monsoon has left the trees all washed and spruced up. It’s right time to take a good look at them, and also to tell the young generation about their diversity. So, tree lovers across the country have joined hands to celebrate a festival of trees this month. The August Tree Fest

How did a policeman move unarmed and fearlessly for 37 long years in Bihar?

Unbounded: My Experiments with Law, Physics, Policing and Super 30 By Abhayanand Rupa Publications, 344 pages, Rs 595   Abhayanand has

India@75: A timely study of the state of the nation

India after 1947: Reflections & Recollections By Rajmohan Gandhi Aleph, 118 pages, Rs 399 Rajmohan Gandhi was about 11 when India won independence. As the nation celebrates 75 years of freedom, how would he – and others like him – feel?

BMC denies protocol breach in ‘Har Ghar Tiranga’

The BrihanMumbai municipal corporation (BMC) has rebutted a Shiv Sena leader’s allegation of breach of protocol in the implementation of the ‘Har Ghar Tiranga’ campaign. On Friday Rahul Shewale, group leader of Shiv Sena in Lok Sabha, had accused BMC commissioner IS Chahal

Mumbai`s stalled building projects: Is self-redevelopment the real solution?

Land in Mumbai city, which is surrounded by water on three sides, is scarce and has a premium. Property prices in certain areas of financial capital of the country are as much as Rs 1 lakh per sq ft. Yet, 5,800 buildings have been lying in a stalled condition for the last 18 years. Meanwhile

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter