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Employment Trends in India UPSC NOTE

 Report by Bahutva Karnataka on  employment trends in India over the past decade

  • On March 11, Bahutva Karnataka, a forum for concerned citizens and organisations.

  • Released a report titled ‘Employment, Wages and Inequality’, at the Press Club, Bengaluru. 

  • The report analyses the progress in various employment-related indicators in the last decade.

  • Ever since the NDA government came to power.

  • This includes employment generation, formalisation of jobs, and improvement in wages.

  • As the general elections draw near, the report also examines the progress of the NDA’s employment-related initiatives

  • In April 2019, for instance, Prime Minister Narendra Modi claimed that 2.5 crore jobs have been added annually

  • Data reveal that the share of formal employment with social security and other advantages attached to it has remained stagnant. 

  • On the other hand, the number of self-employed individuals has increased substantially

  • Further, while wage earnings have increased when adjusted for inflation, the increase is negligible.

  • The stagnation is reflected in the share of households earning less than the national floor level minimum wage

  • About 34% of households in India earned less than the proposed NFLMW of ₹375 a day.

  • Further, wage inequality has resulted in widening the gap between the rich and the poor.

  • In 2022, the top 1% and 10% of the population held 22% and 57% of the national income,

  • While the bottom 50% held 12.7%, according to data from the World Inequality Database.

  • The share of employment across various employment categories in 2011-12 and 2022-23 for men and women. 

  • The share of employment in the formal sector remained below 25%. 

  • The share of those who were self-employed remained above 50% by 2022-23

  • While the share of self-employed women was the highest.

  • It also saw the highest growth of 8% points from 56.5% in 2011-12 to 64.3% in 2022-23

  • According to the report, between 2011-12 and 2022-23, women doing unpaid labour in their family business or farming rose from one in four to one in three due to lack of other remunerative employment and stagnant household earnings.

  • The year-wise average weekly wages, adjusted for inflation, for male and female regular salaried workers and casual labourers

  • Data show there has not been any significant growth in income in the last five years across employment categories.

  • Further, many households still earn less than the NFLMW. 

  • In 2019, an expert committee, set up by the Ministry of Labour and Employment, recommended that the NFLMW should be at least ₹375 per day and ₹3,050 per week

  • Of the 34 States and Union Territories analysed, in about 19 of them, more than 20% earned less than ₹375 a day or less than ₹3,050 a week in 2022-23. 

  • In Chhattisgarh and Uttar Pradesh, above 50% of the households earned less than this threshold.

  • The report adds that nearly 30 crore workers make less than the minimum wage.

  • The stagnancy in income growth among the majority of the population.

  • When juxtaposed with India’s increased GDP per capita, hints at a widening gap between the rich and poor. 

  • In the last 10 years, GDP per capita increased by 60%, while close to 35% of the total households earned less than the NFLMW. 

  • The share of national wealth held by the wealthiest 10% of the population increased from 63% in 2012 to 64.5% in 2022.

  • While the share held by the poorest 50% reduced further from 6.1% in 2012 to 5.6% in 2022.

  • The chart shows the year-wise wealth share of the top 10% and the bottom 50% of the population.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Employment Trends in India UPSC NOTE
Employment Trends in India UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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