Hindu Editorial Analysis : 26-May-2023
In the global context, the 2008 recession had a profound impact on high-income countries and those closely linked to the global economy. As a result, international labor statisticians emphasized the importance of obtaining accurate employment statistics to assess working conditions and facilitate labor-management negotiations. However, India faces challenges in meeting international standards in defining employment, which has prompted recommendations for revision. This essay delves into the need for employment statistics, the issues with measuring employment in India, and the implications for the country’s economy and sustainable development goals.
Need for Obtaining Employment Statistics
- Impact of the 2008 global recession:
- High-income countries and sectors closely linked to the global economy were severely affected.
- International labor statisticians stressed the importance of monitoring working conditions and constructing measurements for labor-management negotiations.
- Importance of accurate employment statistics:
- Facilitate understanding of the labor market and the nature of employment.
- Aid policy formulation and implementation.
- Enable assessment of progress towards sustainable development goals.
Issues with Obtaining Employment Statistics in India
- Unmatched definition:
- India’s definition of employment does not conform to international standards.
- International bodies, such as the International Labour Organisation (ILO), have recommended revising the definition.
- Validity of international standards for India:
- Considering India’s transitional economy with a large agricultural population, the applicability of international standards is questioned.
- The 19th International Conference of Labour Statisticians (ICLS-19) held in 2013 recommended two major changes.
Challenges for India
- Exclusion of production for own use:
- The distinction between work and employment leads to exclusion of production for own use.
- This was implemented to prevent inflation of employment rates, particularly for women engaged in distress work.
- Such exclusion could significantly reduce the proportion of individuals defined as employed, potentially affecting India’s employment statistics.
- Relying on a one-week reference period:
- The recommendation to measure employment based on a one-week reference period poses challenges in India.
- Rural Indians often engage in multiple activities, including farming, construction work, and MGNREGS work.
- During sowing or harvesting seasons, individuals primarily focus on farming, which may result in their classification as farmers rather than as employed.
- Consequently, income-producing activities during other parts of the year may not be accounted for, leading to an underestimation of employment.
Reasons for India’s Declining Employment
- Opting out of work:
- India’s declining labor force participation rate (LFPR) suggests that many individuals have chosen to opt out of the labor force due to a lack of remunerative and productive jobs.
- Challenges faced by women:
- Women experience even greater difficulties in accessing employment opportunities.
- India’s female LFPR is lower than the global average and lags behind countries like Bangladesh.
- Insufficient job availability:
- The post-pandemic period has witnessed a high number of individuals unable to find employment.
- Unemployment rates are particularly high among the younger and more educated population segments.
- Prevalence of informal sector jobs:
- Despite some signs of increasing formalization, a significant portion of the labor force remains employed in the informal sector.
- Lack of a safety net and limited job security pose challenges to the overall well-being of workers.
Important Points:
- The Indian definition of employment does not meet international standards 🌍
- Obtaining accurate employment statistics is crucial for policy formulation and progress assessment towards sustainable development goals 📊🎯
- The global recession of 2008 emphasized the need for monitoring working conditions and labor-management negotiations ⚙️🌎
- India’s employment statistics face challenges due to unmatched definitions and international recommendations for revision 🔄📋
- International bodies, such as the ILO, have urged India to follow the standards set by the ICLS-19 held in 2013 📢💼
- Challenges arise from the exclusion of production for own use, potentially affecting employment rates 🚫🛠️
- Relying on a one-week reference period poses challenges in capturing accurate employment data for individuals engaged in multiple activities, particularly in rural areas ⌛🚜
- India’s declining employment is attributed to individuals opting out of work, especially due to the absence of remunerative and productive jobs 👥👨💼
- Women face greater challenges in accessing employment opportunities, leading to lower labor force participation rates compared to the global average and neighboring countries 👩🏭🔽
- Insufficient job availability and higher unemployment rates persist, particularly among the younger and more educated population segments 📉👨🎓
- Despite some progress in formalization, a substantial portion of the labor force remains employed in the informal sector, lacking job security and a safety net 🏢🚫
Why In News
The Indian definition of employment falls short of meeting internationally recognized standards, creating disparities in labor practices and protection. As a result, efforts are needed to align Indian employment regulations with global benchmarks to ensure fair and equitable treatment of workers.
MCQs about Challenges in Measuring Employment in India
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What is one of the key challenges India faces in meeting international standards for defining employment?
A. Lack of awareness about international standards
B. Inadequate resources for data collection
C. Unmatched definition of employment
D. Resistance from labor unions
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What was the impact of the global recession of 2008 on the focus of employment statistics?
A. Decreased emphasis on labor-management negotiations
B. Decreased need for accurate employment data
C. Increased focus on working conditions monitoring
D. Increased reliance on long-term measurement periods
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What challenge arises from relying on a one-week reference period for employment measurement in India?
A. Overestimation of employment rates
B. Difficulty in capturing accurate data for individuals engaged in multiple activities
C. Underestimation of employment rates
D. Exclusion of unpaid work from employment statistics
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What is a contributing factor to India’s declining employment?
A. Insufficient job availability
B. Inadequate government support for job creation
C. Lack of skilled workforce
D. High labor force participation rate
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