The total employment in both the organized and unorganized sector in the country was of the order of 47 crores. Out of this, about 8 crores were in the organized sector and the balance of 39 crores in the unorganized sector. The workers in the unorganized sector constitute more than 90% of the total employment in the country. A large number of unorganized workers are home-based and are engaged in occupations such as beedi rolling, agarbatti making, papad making, tailoring, and embroidery work.
Economic Survey 2020
The Economic Survey 2020 report shows that the share of regular wage/salaried employees in the total workforce increased to 23% in 2017-18 from 18% in 2011-12. The survey said the number of self-employed, regular wage earners and casual labourers have come down by 17 lakh in six years till 2017-18. India’s workforce at 47.12 crores in FY18 compared with 47.29 crores in FY12, even as employment was getting more formal in nature.
There was also a drop in female employment in the overall job space. From 12.91 crore in 2011-12, their number came down to 10.85 crores in 2017-18. Stressing on the need to set things right, the survey said, “In an era of globalisation, no country can develop and achieve its full potential if half of its population is locked in non-remunerative, less productive and non-economic activities”.
The survey also found that the number of self-employed people, too, came down during the period to 24.21 crore from 24.54 crore; but that is mostly due to a significant drop in the number of ‘unpaid family labour’ category. The share of regular wage/salaried employees in the total employment landscape has, however, increased by five percentage points to 23% in 2017-18 from 18% in 2011-12. In absolute terms, the jump is significant, around 2.62 crore – 1.39 crore in urban areas and 1.21 in rural India.
On the other hand, the distribution of workers in the casual labour category decreased by five percentage points from 30% in 2011-12 to 25% in 2017-18 with the decline being in rural areas.
The survey said after the government’s effort to formalise the economy with measures like introduction of GST, digitisation of payment, DBT and opening of Jan Dhan accounts, there has been a huge increase in formal employment in the country to 9.98% in 2017-18 from 8% in 2011- 12. The estimate of the share of workers in the informal sector (in agriculture and related areas) also shown a decline from 77.5% in 2004-05 to 68.4% in 2017-18.
Overview of Female labour force Participation Rate
60% of women in India in the productive age bracket of 15-59 years are engaged in full-time housework. This does not augur well for a nation chasing its US$5-trillion-economy goal. All-encompassing growth and gender parity are paramount for any economy to realize its full potential. With India striving to become a US$5 trillion economy by 2025, it cannot afford to leave half of its productive workforce behind.
India’s female labour force participation rate — calculated as the share of women who are employed or are seeking work as a proportion of the working-age female population — stands distressingly low at 23.4% (2019) as per the World Bank (modelled ILO estimates). Juxtapose this statistic with neighbouring nations like Bhutan (58.3%), Nepal (81.6%), China (60.63%), Bangladesh (36.14%), Myanmar (47.54%) and Sri Lanka (34.75%). While slightly more women work in Pakistan than in India (24.09% and 23.4%, respectively), Pakistan’s female labour force participation rate is escalating as India’s is flagging. The Economic Survey also found that India’s female labour force participation declined by 7.8% points, from 33.1% in 2011-12 to 25.3% in 2017-18.
Gender Gap in Employability
India Skills Report 2021, is a report on the talent demand and supply in post-COVID India. According to it, Delhi-NCR, Orissa and Uttar Pradesh have the highest pool of employable talent in the country. The study revealed that 45.9% of the youth were considered highly employable resources. The study also found out that Mumbai is the city with the most highly employable resources with 70% of the test takers scoring above 60%. This is followed by Hyderabad.
Given the strategic changes that occurred during the pandemic year, the report on talent demand and supply in post-COVID India has attempted to bring forth an in-depth analysis of overall youth employability derived from various factors like a field of study, demographics, gender participation, preferences, salary expectations and access to resources. One great structural change that we found is that women participation is higher than in the previous 5 years. Women consist of 36% of the workforce, while men comprise 64% of all workers. The highest percentage of women in any sector was recorded in the Banking and Financial Services Industry (BFSI) making up to 46% of the employable talent in this industry. The trend is one of the most positive ones for the future, especially with the Work from Home possibilities.”The employability of women stands at 46.8% as compared to 45.91% of men. Considering the population of qualified and employable human resources in India being women, Indian employers are expected to make reforms in existing infrastructure to accommodate this vast talent pool. By doing so, India can set a trend for every emerging economy to reverse gender roles and create sustainable opportunities for the future of globalization and world commerce.
Importance of Training and Development of Employees
Skill development has been considered one of the critical aspect of job creation in India. India has a unique demographic advantage with more than 60% of the population is in the young age group. But in order to get a dividend from such a large workforce, employability has to be improved. As per current statistics, only 10% of the fresh graduates are employable and the rest of the 90% lack skills required for eligibility to be hired by corporate. India’s GDP is growing at a great rate of around 6-8% but job creation is not catching up with it. The government of India has taken initiative for Skill development through a public-private partnership. There are opportunities for private education players to take advantage of such a scheme. The current infrastructure of ITI and other government-aided institutes are not enough to train people for future job opportunities.
- Optimum Utilization of Human Resources: Human resources need to be polished and trained to enhance their potential. Training and development of employees help to make the best use of the employee’s overall worth to the organization.
- Creating a Highly Skilled, Motivated and Enthusiastic Workforce: The existing workforce is trained to increase their productivity and motivated to contribute their best towards the organization. The employees will be more confident about themselves and enthusiastic about their job. They will adapt to technological changes and innovations more readily.
- Increase Productivity: Knowledge about the usage of sophisticated machinery and new technology is imparted to employees which will enable them to use the equipment more efficiently and thereby increase productivity.
- Build Team Spirit: Training often takes place in groups where the trainees are encouraged to interact with each other and discuss organizational issues. This helps to create team spirit among the employees.
- Healthy Work Environment: Training and development programmes help to modify the thought and behaviour process of the employees in such a way that is conducive to building a healthy work environment.
- Personal Growth of Employees: Development programmes provide opportunities for the employees to enhance their skills and knowledge and help them to achieve better career growth.
- Promote Learning Culture: The employees are encouraged to continuously learn new concepts and update their talents. This helps to promote a learning culture within the organization which would greatly help in its future sustenance and growth.
- Improve Employee Morale: When employees are trained to become better performers, they feel a sense of accomplishment. They realize that they are effectively contributing to organizational goals and thus get a morale boost.
- Better Managerial Skills: Training and development programmes inspire the employees to think, plan, solve problems and take important decisions. This hones up their managerial skills.
- Reduce Employee Turnover: A well-trained employee will take more interest in his job and will be a more efficient worker. He will get more job satisfaction. People who love their jobs are more loyal to the organization.
Importance of Training and Development – Towards Organisations
Training and Development attempts to –
- Improve the current or future performance of an employee.
- Increase employee’s ability to perform through learning.
- Change the employee’s attitude or increase his/her skills and knowledge.
The training and development programmes improve employees’ performance, which directly helps an organisation to achieve its goals. Thus, training benefits both employees and the organisation.
- Systematic learning process –In the absence of proper training employees use hit and trial methods to perform the tasks assigned to them which lead to wastage of resources and effort. With the help of training, employees learn the systematic way of doing specific jobs.
- Enhances productivity – Systematic processes help employees to perform tasks efficiently and effectively leading to increased productivity and improved performance.
- Develops future managers – Training improves managerial skills amongst employees enabling them to manage the enterprise in case of emergency.
- Higher Profits – Systematized learning helps employees to perform tasks most effectively and efficiently. This not only improves employee performance but also increases the quantity and quality of work done in the organisation. The improved performance leads to higher profits and better growth prospects for the organisation.
- Lesser wastage and reduced risks of accidents – Proper training enables employees to use resources in the most optimal manner and operate machines with proper technical and operating skills. This leads to lesser wastage of resources and reduced risks of accidents.
- Reduces absenteeism and employee turnover – With effective training employees are able to improve their performance. This gives them job satisfaction and increases their confidence. Satisfaction in work not only reduces absenteeism but also keeps employees’ content leading to reduced turnover.
- Helps to adapt to changes in a business environment – Training programmes aim to upgrade employees’ knowledge and skills enabling them to respond positively to the economic and technological changes in the business environment.
How many women and men are in employment and how productive they are at work has a lot do to with the available opportunities to acquire and maintain relevant skills. Countries, enterprises and persons all perceive skills development as strategic, and consequently, seek to step up investments in skills. In aspiring to realize the potential of skills development, they face common challenges.
The first is the broad availability of quality education as a foundation for future training. Education for all, and children in school and not at work, is an essential foundation for future training.
A second is building solid bridges between the worlds of work and training providers in order to match skills provision to the needs of enterprises. This is often done best at the sectoral level where the direct participation of employers and workers together with government and training providers can ensure the relevance of training.
A third is continuous workplace training and lifelong learning enabling workers and enterprises to adjust to an increasingly rapid pace of change.
Fourth is anticipating and building competencies for future needs. Sustained dialogue between employers and trainers, coordination across government institutions, labour market information, employment services and performance reviews are steps toan early identification of skill needs.
The fifth is ensuring broad access to training opportunities, for women and men, and particularly for those groups facing greater difficulties, in particular youth, lower-skilled workers, workers with disabilities, rural communities.
In a nutshell, the building blocks of any skills strategy must be solid foundation skills and stronger links between the worlds of education and work. This in turn requires good-quality education in childhood; good information on changes in demand for skills; education and training systems that are responsive to structural changes in economy and society; and recognition of skills and competencies, and their greater utilization in the workplace. To be effective, policy initiatives in these areas will also need to be closely linked with economic and social policy agendas.
Dr. P. Sekhar,
Chairman, Unleashing India, Global Smart City Panel, MTGF.