Skip to main content

India's organized sector job creation plummets post-2010, leaving people under-employed, poorly paid: OECD report

By Our Representative
The Organisation for Economic Co-operation and Development (OECD), the inter-governmental body of rich western countries, has regretted that India has been creating “too few quality jobs to meet the aspiration of its growing workforce, leaving many people under-employed, poorly paid or outside the labour force.”
The report “OECD Economic Surveys: India”, released last month, says, “Despite strong economic growth, the employment rate has declined, the participation rate of women is low and job creation in the organised sector has plummeted since 2010.”
Stating that “inequalities in wages and in social and labour law coverage are large”, the report says, “Only one third of all workers have a written job contract”, with a “vast majority, particularly those in agriculture and the service sector not covered by core labour laws.”
In manufacturing, says the report, around 65% of jobs are in firms with less than 10 employees (the so-called unorganised sector), while most labour laws apply only to larger firms. In addition, larger firms tend to increasingly rely on temporary workers or workers contracted through an agency (so-called “contract” labour).
Pointing towards “an increase in the share of contract labour in the organised manufacturing sector from 15% to 26% in the first half of 2000s, the report says, “A contract worker earns 29% less than a regular worker.”
“Likewise”, the report says, “In the education sector, contract teachers are paid a small fraction of the wage received by government regular teachers and are often paid with a delay.”
Yet, ironically, the OECD report blames this state of affairs on “complex and strict, especially for large industrial firms”, with employment protection legislation being “particularly restrictive”.
“Firms with more than 100 employees are required to obtain prior government approval to dismiss one or more employee”, it says, adding, “The frequency of reinstatement orders in the case of unfair dismissal is high and long delays in resolving labour disputes add to uncertainty and indirect costs of labour.”
It fact, it criticizes social security contributions, which, it says, "are capped and are mandatory below a given income threshold for firms with more than ten employees", which "increase the cost of low-qualified jobs and discourage job creation.”
The result has been, the report says, “Overall, enterprises have reacted to labour and tax regulations by substituting capital for labour, staying small, or relying on contract labour.”
Praising the Government of India for “envisaging rationalising 44 central government laws into four labour laws”, the report says, “Promoting quality employment and reducing both labour informality and income inequality would require introducing a simpler and more flexible labour law which does not discriminate by size of enterprise, gender or job contract.”
Noting that “employer surveys indicate skills shortages in ICT, financial services, tourism, retail and skillintensive manufacturing”, the report quotes “Quoting National Employability Report: Aspiring Minds (2016)”, to say that 58% of employers reported recruitment difficulties “because of talent shortages.”
It insists, “Large sections of the educated workforce have little or no job skills, making them largely unemployable.”
“It is estimated that only 4.7% of the total workforce has undergone formal skill training, much less than in China or South Korea”, the report says, adding, “To improve population skills, vocational training should be introduced earlier in the school curricula.”

Comments

TRENDING

Communal rhetoric? Hindutva preached by RSS-BJP is 'monolithic', not Hinduism

By Prem Verma*  I am a devout Hindu but not a believer of RSS Hindutva form of Hinduism which brings about hatred of other religions. My Hindu religion has not taught me to look down on other religions and neither has it instilled in me to go about converting others to my religion because my religion is superior.

Gross 'injustice' to children: Rs 5000 cr cut in education budget; 15 lakh schools shut down

Counterview Desk  More than 100 dignitaries, including educationists, academia, social activists, teachers’ union, civil society organisations (CSOs), various networks and people working on child rights, in a letter to Union Finance Minister Nirmala Sitharaman have sought reversal of reduction in allocation for education in the Union Budget 2021-22, even as demanding substantial increase in it.

India sees 62 journo deaths, 4th highest, amidst pandemic: Swiss media rights body

By Our Representative The Switzerland-based media rights body Press Emblem Campaign (PEC) has noted that India is the fourth most affected country as far as mediapersons’ death on account of Covid-19 is concerned. According to Blaise Lempen, secretary-general of PEC, the global tally of casualties among media persons in the Covid-19 pandemic has reached 1,036 journalists in 73 countries till date.

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

RSS love for 'killer' Myanmar junta behind Indian military presence at Tatmadaw Day?

By Shamsul Islam*  If a shameful act means an action which is criminal and nauseating, it would be an understatement to describe the attitude of the present RSS-BJP rulers of India towards the demolition of democracy and large-scale killing of the people of Myanmar by the military ( tatmadaw ) junta which took power through a coup on February 1, 2021 after renegading the election results in which the party of Aung San Suu Kyi, National League for Democracy, was a clear winner.

Chhattisgarh’s Apra riverfront imitates Sabarmati: 'Devaluing' water, environment

Sabarmati riverfront By Mansee Bal Bhargava*  This year’s #WorldWaterDay (March 22) focus was on ‘Valuing Water’. My school friend, Pragati Tiwari from Bilaspur, Chhattisgarh, called that day knowing my interest in water matters. We were remembering our childhood days as how we used to play on the banks and the bed of the Arpa Nadi (River) during the summer holidays and as how the river would swell like Anaconda to flow happily during the monsoon.

Bihar massacre on Holi day: Brahminical, casteist mindset behind 'uneasy' silence

Bihar chief minister Nitish Kumar By Vidya Bhushan Rawat*  Several people were killed in Bihar amidst Holi festivities, but not much response has come in from the media. The silence of the government and the society as a whole is also appalling. We seek to romanticise these festivals, yet we forget that every year they take so many lives. This despite the fact that Holi appears to be the best time for 'avenging things'.

India's draft migrants policy: Whither concern on job restrictions imposed by states?

By Anil Kumar*  India’s Niti Aayog has prepared a Draft Migration Policy. The draft policy acknowledges migration as an integral part of development, and it calls for positive government interventions that facilitate internal migration. With a rights-based solution to migration, the draft states that the policy should “enhance the agency and capability of the community and thereby remove aspects that come in the way of an individual’s own natural ability to thrive”.

Recalling Jallianwala martyrs' communal amity as BJP 'warns' of Sitalkuchi everywhere

By Shamsul Islam*  The RSS-BJP rulers declare India to be a battle-ground between Hinduism and Islam. Muslims have been declared as ‘internal threat’ by RSS ideologue MS Golwalkar (“Bunch of Thought”, Chapter xvi). Behaviour of many of their leading cadres, including those who hold high constitutional posts, is such that they seem to be conspiring over-time to ignite a civil war between the two communities. They are under the impression that this would help divert attention from failures of the Hindutva rulers on developmental front.