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More than eight in ten workers in India are employed in unorganised sector

By   /  July 28, 2016  /  Comments Off on More than eight in ten workers in India are employed in unorganised sector

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New Delhi: India no doubt is one of the fastest growing economies in the world in the current environment. Is this growth creating jobs for millions of youth who are entering labor markets and just a job-less growth? In India more than eight out of ten workers are employed in unorganised sector. The rise of employment share in the unorganised sector means a significant portion of employees are deprived of social security and employee benefits, and some monetary incentives.

As per National Sample Survey Office (NSSO) on labour force survey, the number of estimated employed persons in 2011-12 on usual status basis were 47.41 crore, of which 82.7% of workforce (39.14 crore persons) was in unorganized sector. The share of self-employed, regular wage/salaried employees and casual labour were 52.2%, 17.9% and 29.9%, respectively in the total workforce of the country. That means a little less than two of ten workers are employed in organised sector, who are drawing salary and getting regular social security and employee benefits.

In Rural India, workforce participation rate is 39.9% while in Urban India the rate is a little less of 35.5%. More divergent trends are visible between rural and urban pockets of India as far as composition of workforce is concerned. In Rural India, self employed professionals are almost 60% of total workforce in the rural region while only 8.8% are only salaried class. There are significant number of causal workers with 35.3% in the rural pocket.

Being growth engine of the economy, Urban centres have maximum share of regular salarised employees with 43.4% of total workers in the urban region. While share of self-employed is 56%, causal workers represent 14.6% of total workforce in the urban region.

Further, according to the Annual Survey of Industries 2013-14 released by Ministry of Statistics and Programme Implmentation, around 1.04 crore workers were employed in around 1.86 lakh factories that were in operation.

This information was given by Mr Bandaru Dattatreya, Union Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha recently.


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