BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA

BEST PRACTICES

ON

LABOUR MARKET

INFORMATION

IN INDIA

Debasish Chaudhuri, Deputy Director General,

Ministry of Labour and Employment1

Labour & Employment Statistics as

components of Labour Market

Information Labour and employment statistics are broadly considered as

components of Labour Market Information which, inter-

alia, includes information under the following heads;

1) Labour Force (composition, distribution)

2) Wages (benefits, compensations etc.)

3) Consumer Price Indices

4) Industrial Relations (Strike, lockout, closure etc)

5) Productivity

6) Welfare (ESIC, Provident Fund, providing shelters,

insurance, education to child/ bonded labour etc.)

7) Working and living conditions of workers.

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3

Labour Force

Labour force of a country comprises of

the persons who are either ‘working’

(employed) or ‘seeking or available for

work’ (unemployed).

It includes the unemployed, i.e., those

who are not employed, but are seeking work.

It excludes discouraged workers, i.e., those

who have given up and are no longer

looking for work.

4

Labour Force can be divided into four

categories:

Self employed workers,

Wage and salary earners,

Casual workers and

Unemployed.

Economic Activity :

Any activity resulting in production of goods

and services that add value to national product is

considered as an economic activity.

Workers (or employed):

Persons who are engaged in any economic

activity constitute workers.

Seeking or available for work (or unemployed):

Persons who, owing to lack of work, had not

worked but either sought work through any means

are considered as those seeking or available for

work ‘or unemployed’.

5

Indicators of Labour Force Labour Force Participation Rate (LFPR)

LFPR is defined as the number of persons/

person-days in the labour force per 1000 persons/

person-days.

6

Worker Population Ratio (WPR)

WPR is defined as the number of persons/

person-days employed per 1000 persons/ person-days.

Proportion Unemployed (PU)

PU is defined as the number of persons/ person-

days unemployed per 1000 persons/ person-days.

7

Unemployment Rate (UR)

UR is defined as the number of persons/ person-

days unemployed per 1000 persons/ person-days in the

labour force (which includes both the employed and

unemployed).

Main Sources of Labour & Employment

Statistics

Decennial population census conducted by

Registrar General of India.

Quinquennial Sample Surveys on Employment

and Unemployment conducted by NSSO.

Annual Employment and Unemployment Surveys

conducted by Labour Bureau.

Periodic Labour Force Survey (PLFS) by NSSO.

Quarterly Quick Employment Survey (QES) by

Labour Bureau.

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Population Census Decennial population census is conducted by Office of

Census Commissioner of India.

India has now more that hundred years old un-

interrupted tradition of population census undertaken

at the interval of every ten years.

The latest population census was completed in March

2011 : Total Population of India - 121 crores.

Questions on the economic activity of the population

are included in these census.

Census provides information on the number of workers

right up to the village level and upwards as well as

classifies them into cultivators, agricultural labour,

household industries and other workers.9

NSSO Surveys on Employment &

Unemployment

Most comprehensive estimates of employment and

unemployment are obtained through labour force

surveys conducted by NSSO. These surveys are

carried out following sound statistical procedures for

collection and analysis of data.

The Employment and Unemployment Survey (EUS) of

the quinquennial rounds of NSSO is the major source

of data pertaining to various characteristics of labour

and employment.

10

NSSO Surveys on Employment and

Unemployment (Contd./-)

In these household surveys, detailed information

pertaining to employment and unemployment are

collected with the survey coverage for the entire

country and labour force indicators classified on the

basis of age, sex, education, level of living, industry of

work, occupation of the worker etc. are generated

once in a gap of 5 years.

These surveys also provide estimates of average

daily wages of the employees, employment in the

informal sector and informal employment.

Starting from NSS 27th round (Oct, 1972 - Sept 1973)

nine such surveys have so far been conducted by

NSSO. The last survey in the series is the EUS of

NSS 68th round (July 2011 – June 2012). 11



Mainly two major concepts are used in India:

Usual Principal Status (UPS)

Usual Principal and Subsidiary Status (UPSS)

12



Usual Principal Status (UPS): It reflects the status of

an individual over a reference period of one year. Thus a

person is classified as belonging to labour force, if

he/she had been either working or looking for work

during longer part of the 365 days preceding the survey.

The Usual Principal and Subsidiary Status (UPSS)

concept was introduced to widen the UPS concept to

include even those who were outside the labour force on

the basis of the majority time criterion but had been

employed during some part of the year on a usual basis.

13

Data Gaps & Limitations in NSSO

Employment Unemployment Surveys

Labour force surveys do not capture informal sector

workers, home workers, child labour and bonded labour.

Occupation-wise (hazardous and non-hazardous separately)

and age-wise distribution of child labour estimates are not

available. These data are required to be collected.

Distribution of persons by number of days at work and total

intensity of work during the reference week.

Data on job-seekers, social security, average earnings, period

of unemployment, hours of work are needed.

Average earnings of self-employed and others with

agriculture and non-agriculture sectors in order to measure

productivity of workers.

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Annual Employment

Unemployment Survey (EUS) by

Labour Bureau The onset of Global financial crisis in

India induced the felt need of frequent

and regular data on Labour and

Employment and the nodal Ministry

initiated necessary steps for the same.

15

Comparison of Employment

Unemployment Survey of NSSO and

Labour BureauNSSO LB NSSO LB LB

Round/

Year 66th Rd

2009-10

2nd EUS

2011-12

68th Rd

2011-12

3rd EUS

2012-13

4th EUS

2013-14

Coverage All

States/

UTs

All

States/

UTs

All

States/

UTs

All

States/

UTs

All

States/

UTs

Sample

size

100957 128298 101724 133354 136395

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Labour Force Parameters (in %) UPS

approach

17

NSSO LB NSSO LB LB

Sector 66th Rd 2nd EUS 68th Rd 3rd EUS 4th EUS

LFPR

Rural 56.0 54.8 53.3 52.8 54.7

Urban 47.5 47.2 47.8 46.1 47.2

Total 53.5 52.9 51.6 50.9 52.5

WPR

Rural 54.9 52.9 52.1 50.5 52.1

Urban 45.8 44.9 45.9 43.5 44.6

Total 52.2 50.8 50.2 48.5 49.9

UR

Rural 2.0 3.4 2.3 4.4 4.7

Urban 3.6 5.0 3.8 5.7 5.5

Total 2.4 3.8 2.7 4.7 4.9

Labour Force Parameters (in %) UPSS

approach

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NSSO LB NSSO LB LB

Sector 66th Rd 2nd EUS 68th Rd 3rd EUS 4th EUS

LFPR

Rural 60.4 57.9 58.7 55.5 58.8

Urban 48.8 48.0 49.3 46.7 47.9

Total 57.1 55.4 55.9 53.1 55.6

WPR

Rural 59.5 56.3 57.8 53.6 57.1

Urban 47.2 45.8 47.6 44.2 45.5

Total 55.9 53.6 54.7 51.0 53.7

UR

Rural 1.7 2.9 1.7 3.5 2.9

Urban 3.3 4.7 2.0 5.3 4.9

Total 2.1 3.3 1.8 4.0 3.4

Periodic Labour Force Survey

(PLFS) by NSSO

In order to materialize the need for labour

force statistics at more frequent time

interval and to measure the quarterly

changes in the indicators, the Periodic

Labour Force Survey (PLFS) is proposed.

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Periodic Labour Force Survey

(PLFS) by NSSO (Contd…)

Proposed PLFS would provide indirect

estimates of Labour Force parameters as

these estimates will be based on

household survey.

It will not provide estimates of distribution

of employees across the industries/

sectors.

Employment information in the country is

provided by the enterprise based survey.20

Quarterly Quick Employment

Survey (QES) by Labour Bureau

Consequence of Global economic slowdown in Indian

economy demanded the requirement of change in

employment data.

Keeping in view the urgency of the data, it was decided

to conduct these surveys in selected labour intensive

and export oriented sectors which are more likely to be

affected by the global economic slowdown.

Labour Bureau has been conducting Quarterly Quick

Employment Surveys (QES) to assess the changes in

employment of direct and contract workers, export and

non-export in eight selected sectors.

21



(Contd…)These sectors are as below:-

1. Textiles including apparels,

2. Metals,

3. Automobiles,

4. Gems & Jewellery,

5. Transport,

6. IT/BPO,

7. Leather and

8. Handloom/ Power loom22



(Contd…) As per the report of the latest QES i.e.

28th Quick Employment Survey, the

employment decreased by 0.20 lakh

during the period Oct, 2015 to Dec, 2015

at overall level.

Overall estimated employment in all

selected sectors has experienced a net

addition of 38.81 lakh starting from the

first survey (October, 2008 to December,

2008) till the 28th Survey (Oct, 2015 to

Dec, 2015 ).23

Data Gaps & Limitations in QES

by Labour Bureau In case of some sectors the sampling frame is

not exhaustive and up-to-date.

The States/Centers are selected purposively

keeping in view the manpower available with

the Bureau for conducting survey quickly.

The survey is being conducted only in the

eight selected sectors of the economy likely to

be affected more by slow down.

The informal sector is not being covered

except few units in Handloom /Power loom

sector, due to non-availability of reliable and

exhaustive frame.24



(Contd…) Considering the acceptability and

increase in demand of QES data, it is

going to be revised to improve the

methods as well as coverage so as to

generate comprehensive information on

the employment situation in the country.

In revised QES, information on

employment, gender, nature of

employment (direct/ contract), type of

ownership, social security benefits would

be covered.25



(Contd…) Only non-farm emplyment will be covered

which is approximately 51% of the total

employment.

Eight sectors viz Manufacturing,

Construction, Trade, Transport,

Education, Health, Accommodation &

Restaurants and IT/BPOs are proposed

to be covered which constitute nearly

80% of the total non-farm employment.

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(Contd…) During the first year of the survey, sixth

Economic Census frame will be used for

selection of sample units.

It is proposed to cover approx 10,000

units from eight selected sectors.

As there is no frame available for size

class 1-9 workers, it is proposed to carry

out Area Fame Survey in some selected

blocks/ villages to prepare the frame for

this size class. 27

(Changed from Employment Exchange)

28

Employment Exchanges –

Background Government of India

• Policy framework

• Legislation

Employment Exchange {(Compulsory Notification of Vacancies) Act, 1959}

Covers establishments employing >25 workers

Employment Exchanges 978

Job-seekers registered 59.7 million

Largely manual processes

State Governments • Administration of Employment Exchanges

• Current Statistics

29

Context for change

30

Building, Construction & Real

Estate

3.11

Retail 1.71

Transportation & Logistics 1.17

Beauty & Wellness 1.01

Others 4.92

Total 11.92

Workforce Complexion Demand for Skills by 2022, in

crores

Skill Based Job

Matching

Skill DemandJob creation

Make In India

Digital India

Smart Cities

Housing For All

Swachh Bharat

AMRUTSecondary

and Tertiary

Sectors

Landscape Transformation

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Information asymmetry

Employers, Institutions,

Job seekers

Low IT usage

Manual processes and

reports

Physical visits

Focus on larger

establishments

> 25 workers

HR issues

Adequacy

Capacity Building

(Upskilling)

Other challenges

Jurisdictional issues

Limited coverage


32

En

ha

nce

d S

erv

ice

s • Candidates verified through national IDs

• PAN verified institutions

Rich Database

• Nationwide job openings

• Integration with private portals

• Email and SMS gateway

Enhanced Reach

• Rich career content

• Onboarding of counsellors

Counselling Services

• Availability of skilling courses

Training providers


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De

live

ry C

ha

nn

els

PCs/Cyber Cafes 350 Mn internet users

Mobiles/PDAs 210 Mn mobile internet users

Help Desk/Call Centre 12*6, multi-lingual

Common Service Centres1 lakh+ centres

Career Centres 900+ Employment Exchanges

100 Model Centres

National Career Service (Contd…) National Career Service aims at reaching

out to people across the country, in

particular the youth, through a well-

designed structure that comprises an

ICT-based portal, a countrywide set-up of

career centres, a multingual call centre,

and a network of career counsellors.

The chain of Common Service Centres

across the country is another important

channel through which NCS can reach

far and wide.34

National Career Service Portal

The NCS Portal links job-seekers,

employers, counselors and training

providers, all through Aadhaar-based

authentication.

Registration is online and free of charge.

The portal provides information on over

3000 career options from 53 key industry

sectors – from IT to Textiles, Construction

to Automobiles, Pharma and much more.

Job-seekers also have access to industry

trends in a user-friendly way. 35

National Career Service

(NCS)A common, centralized platform to

provide a wide range of career related

services

• Nationwide opportunities

• One stop platform for online services

• Rich career content

• Self assessment tools

• Onboarding of counsellors

“Right choice at right time”

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ECONOMIC CENSUS The scheme was launched by the Central

Statistical Organization in 1976

To meet the long felt need for the

availability of data in respect of

unorganized non-agricultural sector of the

economy.

All enterprises engaged in economic

activities - both agricultural and non-

agricultural, except those engaged in crop

production and plantation

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6th Economic Census

Field work of Sixth Economic Census

was conducted during January 2013 to

April 2014.

The provisional results of 6th Economic

Census were released in July, 2014 by

Central Statistics Office, Ministry of

Statistics and Programme

Implementation.

The final results of 6th Economic

Census are released in March, 2016.

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Highlights of 6th EC (Contd…)

Enumeration Blocks of Population

Census, 2011 were used as the primary

geographical units for collection of data.

Data for handicraft/handloom

establishments were collected for the first

time.

Total number of establishments counted

is about 58.5 million.

Nearly 59.48% of the establishments

belong to rural areas.

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About 18.44% of the establishments

operate from outside household without

fixed structure.

About 1.71% of the establishments are

engaged in handicraft/ handloom

activities.

Growth rate in number of establishments

over Fifth EC (2005) is 41.79%.

Total number of persons employed is

about 131.29 million with rural share of

51.71%.

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Percentage of hired workers is

about 43.53%.

Percentage of female workers is

25.17%.

Growth rate in total employment

over Fifth EC (2005) is 38.13%.

Employment issues and

concerns at a glance :

Approximately 12 million new entrants tolabour force each year.

Unemployment rates on the rise – youthunemployment about 3 times adultunemployment rates.

Most new employment in Informalsegment and in self employment.

Real wages declining.

Fastest increasing share of employment inConstruction sector.

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Thank You!

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BEST PRACTICES ON LABOUR MARKET INFORMATION IN INDIA

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