Generation of jobs in 8 key sectors hit six-year low in 2015

Discussion in 'Economy & Infrastructure' started by pmaitra, May 9, 2016.

  1. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,650
    Likes Received:
    17,147
    Location:
    EST, USA
    Generation of jobs in 8 key sectors hit six-year low in 2015

    Employment had increased by over 1.34 lakh in July-September 2015, had declined by 43,000 in April-June and risen by 64,000 in January-March.

    Written by Aanchal Magazine | [SOURCE]

    New jobs in eight sectors of the economy — textiles, leather, metal, automobiles, gems and jewellery, transport, information technology and handloom — fell to a six-year low of 1,35,000 in 2015 as against 4.21 lakh jobs in 2014 and 4.19 lakh jobs in 2013. This is also the worst record of new jobs in October-December quarter in last six years, registering a decline of 20,000 compared with a rise of 1.17 lakh jobs in the same period in 2014, the latest Labour Bureau data shows.

    Employment had increased by over 1.34 lakh in July-September 2015, had declined by 43,000 in April-June and risen by 64,000 in January-March.


    In October-December, the highest decrease in employment was seen in the IT/BPO sector by 14,000, followed closely by 13,000 in automobiles sector, 12,000 in metals, and 8,000 in gems and jewellery sector. Textiles including apparels was the only sector which showed an increase in jobs, having registered 37,000 jobs in the October-December quarter.

    New jobs in eight sectors of the economy — textiles, leather, metal, automobiles, gems and jewellery, transport, information technology and handloom — fell to a six-year low of 1,35,000 in 2015 as against 4.21 lakh jobs in 2014 and 4.19 lakh jobs in 2013. This is also the worst record of new jobs in October-December quarter in last six years, registering a decline of 20,000 compared with a rise of 1.17 lakh jobs in the same period in 2014, the latest Labour Bureau data shows.

    Employment had increased by over 1.34 lakh in July-September 2015, had declined by 43,000 in April-June and risen by 64,000 in January-March.

    In October-December, the highest decrease in employment was seen in the IT/BPO sector by 14,000, followed closely by 13,000 in automobiles sector, 12,000 in metals, and 8,000 in gems and jewellery sector. Textiles including apparels was the only sector which showed an increase in jobs, having registered 37,000 jobs in the October-December quarter.

    [​IMG]

    In 2015, contractual employment decreased by 32,000 as against an increase of 1.36 lakh jobs in 2014, while direct employment increased by 1.67 lakh, but was sharply down from 2.85 lakh jobs in 2014. Direct employment was hit the most in gems and jewellery sector in 2015, decreasing by 11,000, while the highest increase was seen in IT/BPO sector by addition of 74,000 jobs.

    Employment in the exporting units increased by 44,000 in October-December 2015, while employment in non-exporting units decreased by 64,000. In 2015, employment in the exporting units increased by 1.22 lakh whereas in the non-exporting units, the same increased by 13,000.

    The Labour Bureau released the Quarterly Report on Changes in Employment in Selected Sectors, the 28th in the series which the Bureau had started in January 2009 to assess the changes in employment in eight sectors — textiles, leather, metal, automobiles, gems and jewellery, transport, information technology and handloom.
     
    Peter, DingDong and Bahamut like this.
  2.  
  3. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

    Joined:
    Apr 29, 2015
    Messages:
    7,052
    Likes Received:
    7,594
    Location:
    21°N 78°E / 21°N 78°E
    India's population will be 1.46 billion by 2030. Against today's 1.272 billions.
    How many many jobs gonna be created by then, anybody knows?
     
  4. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,650
    Likes Received:
    17,147
    Location:
    EST, USA
    It is next to impossible to grow jobs at the rate of population growth. People going out of India in large numbers might not be easy as the western world becomes less lucrative.
     
  5. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

    Joined:
    Apr 29, 2015
    Messages:
    7,052
    Likes Received:
    7,594
    Location:
    21°N 78°E / 21°N 78°E
    Well, Indian population is slowing down as well. One example is of I gave 1.46 billions in 2030 which was projected to be 1.52 billions last year with fertility variant. Further, it was projected to decline after hitting mark of around 1.75 billions.
    Anyway, whatever you say, our population growth is still in control. For next 30 years, it would be growing by 25-30% at most(same as that of USA) meanwhile Pakistanis would have doubled their population (though economy will remain much larger because of 2-3 times higher GDP per capita (ask for links).
    13th Five Years plan is yet to come. That's why I'm being optimistic. :)
     
    parijataka, sob and pmaitra like this.
  6. sob

    sob Moderator Moderator

    Joined:
    May 4, 2009
    Messages:
    6,359
    Likes Received:
    3,661
    Location:
    New Delhi
    IT sector is becoming more productive, it has seen productivity increasing very sharply.

    http://economictimes.indiatimes.com...to-hire-fewer-people/articleshow/46375396.cms

     
    Indx TechStyle likes this.
  7. garg_bharat

    garg_bharat Senior Member Senior Member

    Joined:
    Dec 12, 2015
    Messages:
    2,001
    Likes Received:
    999
    Job growth has been bad in 2015. It may be somewhat better in 2016, but not much better.

    The government needs to reduce interest rate and spend more to give a boost to the economy. It is clear that the economy needs stimulus.
     
    Bahamut, Peter, AnantS and 1 other person like this.
  8. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

    Joined:
    Apr 29, 2015
    Messages:
    7,052
    Likes Received:
    7,594
    Location:
    21°N 78°E / 21°N 78°E
    I have hopes from start up India and stand up India plan as well though, this program has just started and not even properly on the ground.

    Anybody knows about some more details for 13th five years plan? :p There have been discussion so many gifts between 2017-22. Smart Cities, Skill India, start up plan, providing homes, making 18000km excess of controlled access motorways and first bullet train etc.. How many of them you guys think to come on the ground? o_O
     
  9. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

    Joined:
    Apr 28, 2012
    Messages:
    6,680
    Likes Received:
    6,659
    Sectoral compositions keep changing over time. Nothing to worry about it as long as other jobs are created.
     
    AnantS likes this.
  10. Peter

    Peter Senior Member Senior Member

    Joined:
    Mar 3, 2014
    Messages:
    2,211
    Likes Received:
    1,127
    Location:
    Kolkata
    Unless GOI changes its policies and India controls its population,things would not improve. Ihad argued on the same issue with @Mad Indian.
     
    sasum likes this.
  11. Peter

    Peter Senior Member Senior Member

    Joined:
    Mar 3, 2014
    Messages:
    2,211
    Likes Received:
    1,127
    Location:
    Kolkata
    All of the smart cities,skill india etc are only on paper. We all know that none of these will ever come to fruition.
     
    sasum likes this.
  12. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

    Joined:
    Apr 29, 2015
    Messages:
    7,052
    Likes Received:
    7,594
    Location:
    21°N 78°E / 21°N 78°E
    Population is slowing down and projection has been proved overestimated every year.
    One example for 2030, from 1.52 billions to 1.46 billions,
    Other one that Indian population will start decline after reaching 1.75 billions in 2060-70.
    Who told you that?
    Dholera, Kochi, Navi Mumbai etc. are under construction. Building 100 cities by 2022 is impossible. Though we can have a nice collection of developed cities in one or two decades.
     
  13. garg_bharat

    garg_bharat Senior Member Senior Member

    Joined:
    Dec 12, 2015
    Messages:
    2,001
    Likes Received:
    999
    The job creation is weak right now. This situation cannot be pushed under the rug. I believe government needs to spend more, but then you have Mr Rajan (governor of RBI) who would not allow it.

    It takes money. And remember smart city is not about construction. It is about industry and jobs. Industry comes when there are buyers for its products.

    Cities are already there which will grow bigger. For example Manesar and Dharuhera are villages converted into cities. Main thing is how industry grows.

    Sustainability of urban development comes from jobs.

    Skill India is already gaining traction. A lot of existing handymen in unorganized sector are being trained. The idea is to imbibe state of the art in the workforce.
     
    Last edited: May 12, 2016
    Ancient Indian likes this.
  14. Bahamut

    Bahamut Senior Member Senior Member

    Joined:
    Oct 31, 2015
    Messages:
    1,826
    Likes Received:
    1,337
    Location:
    somewhere in space time
    Our population is too much ,there no way way that we can sustain a growth where every one get employed but the govt. need to take measure for decreasing the population .
     
    sasum likes this.
  15. sasum

    sasum Atheist but not Communists. Senior Member

    Joined:
    Jan 14, 2016
    Messages:
    1,434
    Likes Received:
    737
    Location:
    Delhi, India
    If you talk sense, Bhakts/ RW will dub you Commie (they don't even know what communism is) and proffer all sorts of stupid arguments like " we will have to keep pace with multiplying muzzies so that Hindustan remains a Hindu land" :creepy:
     
    Bahamut likes this.
  16. Bahamut

    Bahamut Senior Member Senior Member

    Joined:
    Oct 31, 2015
    Messages:
    1,826
    Likes Received:
    1,337
    Location:
    somewhere in space time
    That does not the fact on the ground .True Muslim are increasing their population at a huge pace that why population control is need and must be implemented at all level.A max of 2 kid .Look at Iran in about 3 decade the were able to bring the avg size of family from 10 to 3-4 people.This happen not due to abortion but telling people about family planning .This can happen in India also ,if we try it.
     
  17. DingDong

    DingDong Senior Member Senior Member

    Joined:
    Oct 24, 2014
    Messages:
    2,227
    Likes Received:
    3,665
    Location:
    Delhi
    SMEs are not benefiting from the government programs, no money or job for them. Cartelization is much worse compared to the UPA regime, only the large corporates are benefiting. Corruption hasn't decreased, only difference being that large scale corruption is now well hidden from the general public.

    Sooner rather than later people will start doubting all those feel-good growth numbers. 2019 will not be easy for BJP.
     
  18. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,514
    Likes Received:
    3,046
    Location:
    Hyderabad, Andhra Pradesh, India
    Would like to know on what basis you have come to this conclusion?

    Based on what I see, almost all major companies are either in cleanup mode or expansion mode. Industry will need one more fiscal year for positive effects to trickle down.
     
  19. DingDong

    DingDong Senior Member Senior Member

    Joined:
    Oct 24, 2014
    Messages:
    2,227
    Likes Received:
    3,665
    Location:
    Delhi
    Exactly, only the "major" companies are getting any benefit what-so-ever. SMEs employ more people than those large corporates. There will be absolutely ZERO (0) trickle down effect of the kind of economic policy we currently have.

    This is all gonna end up like NDA-1, Jobless Growth.
     
  20. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
    Well even if suppose BJP is woking for BIg B but still this Bib B are complaning that nothing is beging done for them

    This would be only gov in history which is equally loathe by its supporters for doing nothing and by opponents for doing doing extra.

    And i think we have missed manufacturing BUS way long back may in when China started we sholud had started by 1996 or 1999.

    Now even china is moving towards automation.

    I donot see how gov is going to produce or crate env where there would be job+growth

    Future seems bleak with dole type of GOV on lines of venzula and others.

    Look out current aiamdk TN election manifesto it promises money helps to educated youth who are unemployed
     
  21. Peter

    Peter Senior Member Senior Member

    Joined:
    Mar 3, 2014
    Messages:
    2,211
    Likes Received:
    1,127
    Location:
    Kolkata


    Solving India's economic woes

    The Indian economy is in the doldrums, with no manufacturing growth, negative figures of exports, sluggish real estate market, skyrocketing food prices, alarming level of unemployment, etc

    Ruchir Sharma, the Chief Global Strategist of Morgan Stanley, is the latest economic 'wizard', after Raghram Rajan, diagnosing India's economic problems and suggesting a remedy.
    http://economictimes.indiatimes.com/…/articles…/53029300.cms

    His statement that the official figure of India's GDP growth of 7.9% is bogus, is correct. But his remedy for solving India's economic woes is superficial. He says that there must be increase in private investment in India.

    " GDP is overstated, higher private investment is needed " says Ruchir Sharma

    But who will invest in India when there is a recession going on ? Where is the demand ? And there is lack of infrastructure, corruption, red tape, etc in many parts of India. Businessmen are not doing charity, but seek profits.

    Most of the economists in the world are totally superficial, and have no genuine solution to the worldwide recession.

    Economists with high sounding degrees from Harvard, Yale, London School of Economics, etc have made economics an arcane, esoteric subject. But it is not so. Let me therefore explain the present crisis step by step:

    1. The present world wide recession is due to slow down in manufacturing in most parts of the world. But why is there a slow down in production ? It is because of decline in sales, because who will manufacture if the goods manufactured cannot be sold ? And the decline in sales is because of decline of purchasing power in the masses. Let me explain.

    2. There is competition in the market. To face the competition in the market and survive, industries have to reduce their cost of production, and for this they have to do two things (1 ) become more and more capital intensive, rather than labour intensive( to reduce labour costs ) and (2) become larger in size ( to effect economy of scale ).

    3. Cost of labour is a big chunk of the total cost of production, and so by becoming capital intensive ( by introducing automation or new labour saving technology ) industrialists reduce their cost of labour, and thereby their cost of production. Even though they may have to pay interest on the loans taken from banks to buy the new machinery, this cost is far less than the saving in labour costs by laying off workers.

    If an industry does not do this ( introduce automation or capital intensive machinery, and grow larger ) its rival will do it, by becoming larger and and reducing its labour costs, and thereby reducing its cost of production, and eliminate the former by underselling it. So every industry must do it to survive. But in the process it is generating widespread unemployment.

    4. This is because the worker is not only a producer he is also a consumer. A steel worker does not merely produce steel, he and his family also consume food, clothing, shoes, and a host of other articles. If he loses his job his purchasing capacity is drastically reduced, and consequently he has to drastically reduce his consumption. He will now buy only essentials like food and medicines ( to survive ) but he stops buying most industrial goods like cars, gadgets, etc

    This reduction in spending leads to reduction in sales, and since the same process is broadly followed in most industries, it leads to increasing unemployment, and thereby widespread reduction in the purchasing power of the masses

    5. At the same time, industries have to grow larger in size . Large scale production means one can sell at a cheaper price than small scale production ( by effecting economy of scale e.g. by buying raw materials in bulk, and thereby cheaper ). If a businessman does not do that his business rival will do it, and thereby eliminate him by underselling him.

    6. Thus the very dynamics of industrialization introduces two contradictory tendencies. On the one hand, production increases ( since industries are growing larger ). On the other hand, purchasing power decreases, as more and more unemployment is being generated ( as automation or capital intensive mashinery is introduced ). How will the goods produced be sold ? This contradictory tendency sooner or later results in a crisis, i.e. a recession, which leads to more unemployment, thus intensifying the crisis. It is a chain reaction.

    7. The solution to the problem is therefore to increase the purchasing power of the masses. There is no difficulty in increasing production, but how will the goods produced be sold when most people do not have the money to buy ?

    8. The French economist Jean Baptiste Say propounded his well known ' Say's Law ' which says that production will find its own demand, and Adam Smith in his ' The Wealth of Nations ' spoke of ' the invisible hand ' which will lead to unending progress.. But subsequent developments, particularly the Great Depression from 1929 to 1939 have proved these theories false. Keynes theory ( propounded in his book ' The General Theory of Employment, Money and Interest ' in 1936 ), which prescribes large scale government spending as the way out of the contradiction, was really a temporary palliative, and presents no real solution to the problem.

    :confused1::confused1::confused1:


    9. Hence the problem is not how to increase production ( that can easily be done with the large number of competent engineers and immense natural resources we have ) but how to raise the purchasing power of the masses, so that the goods produced can be sold. But how is this to be done ? This is the problem to which all serious thinkers must now apply their minds.

    10. In socialist countries the method of raising the purchasing power of the masses, and thereby rapidly expanding the economy and consequently abolishing unemployment, was broadly this :

    (a) Prices of commodities were fixed by the government.

    (b) These prices were reduced by 5-10% every 2 years or so

    (c) This resulted in steadily increasing the purchasing power of the masses, because with the same income people could buy more goods. In other words, the real income of the masses went up even if nominally it remained the same ( since real wage is relative to the price index ).

    (d) Simultaneously, production was stepped up, and this increased production could be sold in the domestic market, as the purchasing power of people was steadily rising.

    (e) This led to rapid expansion of the economy, leading to creation of millions of jobs and thereby abolition of unemployment.

    :india2:


    During the Great Depression which hit the Western economies in 1929 ( it continued till the breakout of the Second World War in 1939, despite the New Deal of President Franklin Roosevelt ) when about one third or more people in Western countries were unemployed and factories were shutting down, the Soviet economy was rapidly expanding and unemployment abolished in the Soviet Union by following the above methodology.

    Of course this was only possible in a socialist economy, where the problem was solved by state action.

    I am not saying that we must necessarily follow the method adopted by socialist countries. We can adopt any other method if thereby we can raise the purchasing power of the Indian masses and thereby rapidly expand the Indian economy, which is the only way of eliminating the recession and abolishing unemployment in India.. The central point, and therefore the main problem before India, is how to raise the purchasing power of the masses ?
     

Share This Page