India adding more jobs than people entering job market

Ariss

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In India, the overall employment situation is assessed on the basis of periodic comprehensive surveys by NSSO. Photo: Aniruddha Chowdhury/Mint
We see two major concerns on employment generation in India. The first relates to regular availability of information on employment generation and the second, to its quality, particularly its ability to capture fully the data on employment generation from the new initiatives taken by the government.




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In India, the overall employment situation is assessed on the basis of periodic comprehensive surveys undertaken by the National Sample Survey Office (NSSO), usually after every five years. The NSSO surveys reveal that overall employment growth from 1993-94 to 2011-12 (the latest year for which the data is available) averaged 1.1% per annum, perceived to be lower than the growth in the number of people who might have been entering the labour force and what one would expect from accelerating output growth. The employment elasticity during this period was only 0.18. A secular decline in the labour force participation rate (LFPR), which reflects willingness to work, from 430 per 1,000 people in 2004-05 to 395 per 1,000 in 2011-12, kept the unemployment rate at low levels.

Since NSSO surveys have been infrequent, the director general of the Labour Bureau has started providing more frequent information on labour markets since 2009-10. It has released five survey reports during this period, the latest being for 2015-16. The methodology is almost similar, but results are based on large surveys. These could be considered a reasonable proxy for assessing the labour market situation, more so in the intervening periods between the publication of NSSO surveys.

We look at the information from these two surveys—NSSO and Labour Bureau—to seek answers to these three questions:



First, whether this period was one of jobless growth? Second, assuming that each state followed a different development strategy, how different was their relative record in providing employment to job seekers? Third, what is the status when it comes to providing regular, productive and well-paid jobs?

Labour Bureau data indicates that between 2009-10 and 2015-16, incremental jobs created exceeded the number of people who entered the labour force by a wide margin. At an aggregate level, 75 million jobs were created, against 61 million who were added to the list of job seekers. During this period, the overall percentage of people in the age group of 15 and above who were willing to work, both male and female, increased marginally. With employment opportunities outnumbering job seekers by 23%, the rate of unemployment also declined. Contrary to general perception, the period 2009-10 to 2015-16 does not seem to be a period of jobless growth.

Notwithstanding interstate differences, the average annual rate of growth of job creation at the all-India level, at 3.2% in 2009-2016, exceeded the rate of growth of job seekers, which averaged 2.4% (Table 1). Six states—Assam, Himachal Pradesh, Jammu and Kashmir, Kerala, Sikkim and Uttarakhand—had lower job creation growth relative to the growth of job seekers. A significantly high growth of incremental job creation in Bihar, Jharkhand and Uttar Pradesh needs to be further analysed to ascertain the contributing factors.

A state-wide analysis suggests that in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan, there was a sharp decline in female job seekers—and this might have helped match job opportunities to job seekers. On the other hand, in Sikkim, there were fewer job opportunities for both males and females. Despite adequate availability of job opportunities at the all-India level, state-wide differences remained significant, and, in some cases, surplus jobs arose only because of a decline in the labour and workforce participation rate for females.

The third question relates to how well paid these jobs were. The Labour Bureau survey (2015-16) has categorized workers according to their monthly income levels. Most of the workers, 84% of all, whether self-employed, regular wage earners, contract workers or casual workers, were getting an income of less than Rs10,000 per month (Figure 1). Regular wage earners or salaried-class workers were better off, with 57% having a monthly income of Rs10,000 or less. Finally, 96.3% of casual workers, including those who were employed for public works, and 85% of self-employed persons had a monthly income of Rs10,000 or less. Enough work was also not available for nearly 40% of the workers; they were being employed for only a part of the year. In terms of decent, productive and well-paid jobs, considerable gaps continued to persist.



It is necessary, then, to evolve strategies to create supplementary opportunities for the self-employed, improve the female labour force participation rate, increase the ratio of female to male job seekers, and reduce interstate differences.
 

nongaddarliberal

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We need job growth in the formal economy, where wages are decent and safety standards are present. We should move away from the informal economy where it's untaxed, unregulated, and a lot of times unsafe, especially concerning child labour. This black economy is the reason for India's abysmally low tax to GDP ratio, which limits our ability to spend on defence, education and infrastructure.
 

Dovah

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I didn't read the whole article. But the statistics seem weird looking at the charts. % Growth in number of job seekers vs % growth in the number of existing jobs is a weird metric to compare since the difference in base value for both of them is huge. And then giving absolute numbers only for growth in jobs makes it weirder.
 
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% Growth in number of job seekers vs % growth in the number of existing jobs is a weird metric to compare since the difference in base value for both of them is huge. And then giving absolute numbers only for growth in jobs makes it weirder.
What must be the correct method?
 

IndiaRising

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Make in India for defence would be a big boost to local youth if the government, bureaucrats, and military leadership get their act together.
 

nongaddarliberal

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How much truth is there in this report? According to the stats there's a job surplus in many states. That's quite contrary to what some (western) analyst have reported earlier.

http://www.thehindu.com/business/Economy/More-people-to-be-jobless-in-India-ILO/article17036623.ece
This article says that though the absolute number of unemployed people will increase, the unemployment percentage is set to decrease. Basically it's a problem of population growth.

" The ILO predicted that the number of jobless will increase from 17.7 million in 2016 to 18 million by 2018 even though the country’s unemployment rate is expected to go down from 3.5 per cent to 3.4 per cent 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.”

“Manufacturing growth has underpinned India’s recent economic performance, which may help buffer demand for the region’s commodity exporters,” . "

Another thing to keep in mind is that India's informal economy has always been under reported. People don't disclose their true incomes to avoid tax, and people claim to be unemployed even if they have a job. But the problem has been that there hasn't been enough job growth in the formal sector, such as large scale manufacturing and IT. And though the IT industry is going to do well, that doesn't mean that they will need more employees. In fact, with the rise of AI, I see a lot of lower skilled IT employees being laid off.
 

Tibarn

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This is good news. I wonder what percentage of all the new jobs are in manufacturing however. That is what we really need, as otherwise low wage jobs are not good enough.
 

Abhijeet Dey

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Good evening to everyone. I shouldn't be asking this in this forum (so embarrassing :tsk:) but I have no other choice.

Right now I am looking for a job. Presently I am staying in Kolkata with my father.

My qualifications are B.Tech Mechanical Engineer with 7 years experience in Construction sector. I have applied in many job sites but I am getting fake job offers.

If you have any source or contacts or friends to whom I can send my CV for review please let me know. I would be very grateful. I am ready to change my discipline (i.e. construction sector) and work in other disciplines afresh such as manufacturing etc.... Please help.

Edit: I think there are very few jobs for Mechanical Engineers in the Construction industry.
 

vampyrbladez

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Good evening to everyone. I shouldn't be asking this in this forum (so embarrassing :tsk:) but I have no other choice.

Right now I am looking for a job. Presently I am staying in Kolkata with my father.

My qualifications are B.Tech Mechanical Engineer with 7 years experience in Construction sector. I have applied in many job sites but I am getting fake job offers.

If you have any source or contacts or friends to whom I can send my CV for review please let me know. I would be very grateful. I am ready to change my discipline (i.e. construction sector) and work in other disciplines afresh such as manufacturing etc.... Please help.

Edit: I think there are very few jobs for Mechanical Engineers in the Construction industry.
Do you know any computer software applications? (C++ , C# , C , JAVA , PYTHON , SQL , CAD/CAM , VeriLog, CATIA , MATLAB , etc)

Do you have any published papers or journals?

Are you comfortable with a travelling job?

Have you been involved with any major projects?

Have you cracked any exams?

How many languages can you speak?

Did you resign / get fired from last job?

Nowadays value of B.Tech degree if you are not IT / CS is that of a rehri-wala. Go down highway and every 10 km you will find an engineering college. If you don't reskill every 5 years, you lose value in the market.

First step I would suggest is go to major companies website and submit CV online and look for recruitment drives. Go to HR agencies (decent ones) and look for interview call.

Join somewhere small (even call centre) but don't stay idle. In Bangalore - Bellary belt , Delhi - NCR , Kolkata (Rajarhat / New Town) , etc , construction business is booming. If you have someone working there, join as internship / temp and make some moves there.
 

Bhumihar

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Good evening to everyone. I shouldn't be asking this in this forum (so embarrassing :tsk:) but I have no other choice.

Right now I am looking for a job. Presently I am staying in Kolkata with my father.

My qualifications are B.Tech Mechanical Engineer with 7 years experience in Construction sector. I have applied in many job sites but I am getting fake job offers.

If you have any source or contacts or friends to whom I can send my CV for review please let me know. I would be very grateful. I am ready to change my discipline (i.e. construction sector) and work in other disciplines afresh such as manufacturing etc.... Please help.

Edit: I think there are very few jobs for Mechanical Engineers in the Construction industry.
U could try eLitimus exam. I have heard they have very credible hire rate.

And most important don't loose hope.
 

Pinky Chaudhary

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Good evening to everyone. I shouldn't be asking this in this forum (so embarrassing :tsk:) but I have no other choice.

Right now I am looking for a job. Presently I am staying in Kolkata with my father.

My qualifications are B.Tech Mechanical Engineer with 7 years experience in Construction sector. I have applied in many job sites but I am getting fake job offers.

If you have any source or contacts or friends to whom I can send my CV for review please let me know. I would be very grateful. I am ready to change my discipline (i.e. construction sector) and work in other disciplines afresh such as manufacturing etc.... Please help.

Edit: I think there are very few jobs for Mechanical Engineers in the Construction industry.
You should try for GATE exam bro....
 
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Edit: I think there are very few jobs for Mechanical Engineers in the Construction industry.
Mechanical engineers should be there in Heavy Engineering or Automotive sector, construction has little room.

There are lot of companies L&T, Godrej, Cheema Boilers, Tata & Maruti, D Development & ISGEC etc.. Actually, there should be lot more companies there in Kolkata & Gujarat. It's extremely rare that a mechanical engineer that even experienced is jobless.
Are your salary expectations or place to do job are roadblocks or problem just actually is what it is?
 

Abhijeet Dey

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Mechanical engineers should be there in Heavy Engineering or Automotive sector, construction has little room.

There are lot of companies L&T, Godrej, Cheema Boilers, Tata & Maruti, D Development & ISGEC etc.. Actually, there should be lot more companies there in Kolkata & Gujarat. It's extremely rare that a mechanical engineer that even experienced is jobless.
Are your salary expectations or place to do job are roadblocks or problem just actually is what it is?
Mechanical engineers should be there in Heavy Engineering or Automotive sector, construction has little room.

There are lot of companies L&T, Godrej, Cheema Boilers, Tata & Maruti, D Development & ISGEC etc.. Actually, there should be lot more companies there in Kolkata & Gujarat. It's extremely rare that a mechanical engineer that even experienced is jobless.
Are your salary expectations or place to do job are roadblocks or problem just actually is what it is?
I have applied in companies but as of now there has been no response. I am trying by best. Let's hope I get a job as soon as possible
 

vampyrbladez

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I have applied in companies but as of now there has been no response. I am trying by best. Let's hope I get a job as soon as possible
Polish your CV a bit more. Make it look more presentable.

https://zety.com/blog/how-to-write-a-cv

Companies use AI algorithms for certain keywords to filter for potential candidates.

Please link your CV to LinkedIn and GitHub if you have an CAD - CAM files you have developed.

Also if it is not too personal, were you layed off or quit?

Did you study in a convent or govt. school?

Also how is your communication skills and spoken english? Are you like Tharoor or Mamata Banerjee? Learning at least one foreign language helps! Try for German, Spanish or French. They use english alphabets and are easier to learn. Simply use YouTube!

DM me if you need additional tips!
 

Abhijeet Dey

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Polish your CV a bit more. Make it look more presentable.

https://zety.com/blog/how-to-write-a-cv

Companies use AI algorithms for certain keywords to filter for potential candidates.
Ok l'll check. Thank you.
Please link your CV to LinkedIn and GitHub if you have an CAD - CAM files you have developed.
https://www.linkedin.com/in/abhijeet-dey-112786141
Also if it is not too personal, were you layed off or quit?
Our last project got completed. But they (previous company) didn't call me for their next project.
Did you study in a convent or govt. school?
CBSE
Also how is your communication skills and spoken english? Are you like Tharoor or Mamata Banerjee? Learning at least one foreign language helps! Try for German, Spanish or French. They use english alphabets and are easier to learn. Simply use YouTube!

DM me if you need additional tips!
My english is ok. :) Since I have worked in UAE and Algeria I may try to learn French and Arabic.
 

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