Composition of Labor Force

7/30/2019 Composition of Labor Force

1/10

Assignment report

On

COMPOSITION of LABOR FORCE

Submitted by:

APARNA DAS

Dept of FINANCE/MARKETTING

Roll no:


2/10

CertificateThis is to certify that the seminar entitled

Composition of Labor Force presented by

APARNA DAS, Roll No. XXXXXXXX, 4th semester, Dept.

of Business management is a bonafide work of his own,submitted in partial fulfillment of the requirement for

the award of post graduation degree in computer

science and engineering.

Mr.

Head of department

INTRODUCTION


3/10

What Labor force or Labor Market means??

In Human Resource strategy, Labor refers to A social class comprising

those who do manual labour or work for wages, and Labor Force refers to

An organized information about workers and their united action for any

Productive work (especially physical work done for wages)

Background aspects of Labor Force:

The concept of pro-poor growth envisages acceleration in economic

growth with concomitant growth in employment opportunities for the poor. This

can be achieved when productivity growth, employment growth, and rise in real

wages take place simultaneously at a rapid pace. India's economic growth over

the last two decades has been quite robust - expanding at more than 5 per cent

per annum. In recent years, the growth rate has reached 7-8 per cent.

Employment, on the other hand, has not grown so fast. The employment growth

rate decelerated from 2.04 per cent per annum between 1983 and 1993-94 to

0.98 per cent per annum between 1993-94 and 1999-2000. Employment in theorganized manufacturing1 sector grew at 1.20 per cent and 0.53 per cent per

annum over the 1980s and 1990s, respectively. The decline in organized sector

employment is partly due to the downsizing of the public sector. Unorganized

sector employment growth also witnessed a deceleration from 2.19 per cent per

annum during the 1980s to around 1 per cent in the 1990s.

In this backdrop of 'jobless growth' in the Indian economy in the last few years,

creating an environment of 'pro-poor' growth becomes an even greater

challenge. In recent years (between 1999- 2000 and 2004-05), employment

growth rate has picked up. The 61st round of the National Sample Survey

Organization (NSSO) shows that employment growth rose considerably (to

nearly 3 per cent per annum) in the period from 1999-2000 to 2004-05, though

the extent of decline in poverty has been much slower after 1993, compared

with what was experienced from 1983 to 1993-94. This indicates that in recent

years, economic growth and employment generation have both been more

beneficial to those located in the upper income strata of society than the poor.

In other words, in the present situation of economic growth, employment is


4/10

being generated more for the educated labour force than for the poor with lower

levels of human capital. All this is likely to have resulted in increasing inequality.

Labor Force in India :

The Indian labor market can be categorized into three sectors:

Rural workers , who constitute about 60% of the workforce

Organized of the formal sector, that constitutes about 8% of the

workforce; and

Urban unorganized or informal structure which represents the 32% of

the workforce.

The chart below describes the estimated increase in the number of labors

from 1977-78 to 2004-05. The labor force has grown from 276.3 million to385.5 million between 1977-78 and1993-94 showing an annual growth rate

of 2.1%. During the year 1999-2000, the workforce was estimated to be

407

million. In 2004-05 the labor market consisted of 430 million workers and

has grown up to 500 million in 2006.

Two-third of Indias workforce is employed in agriculture and rural industries.One-third of rural households are agricultural labor households, subsisting on

wage employment. Only about 9 percent of the total workforce is in theorganized sector; the remaining 91 percent are in the unorganized sector, self-employed, or employed as casual wage laborers. The labor force in year 2006

has grown up to 509.3 million out of which 60% are in agriculture, 12% areemployed in industries and the residual 28% are in services.


5/10

Labor force can be divided into four categories: self employedworkers, wage and salary earners, casual workers and unemployed.

Of these, self-employed are most loosely connected to labor marketbecause of the possibilities of work-sharing and work spreading in aself-employed enterprise. Non-contractual casual laborers have theclosest connection to labor market on almost day-to day basis.Same is the case with those unemployed who are actively seekingwork. Contractual and hence stable hired employment (with thesame employer and/or in the same job) on a regular basis iscovered in the description wage and salary workers. Persons whoare engaged in their own farm or non- farm enterprises are definedas self employed. The employees in an enterprise can be either

regular salaried/ wage employees or casual wage employees whoare normally engaged on a day today basis. The casual wageworkers both in public work and other types of work dont have any

job security or social security. These workers, either in formal orinformal sector or in private households, are informal workers. Theregular salaried/wage employees are those working in others farmor non- farm enterprises and getting in return salary or wages on aregular basis and not on the basis of daily or periodic renewal ofwork contract. This category includes those getting time wage aswell as those receiving piece wage or salary and paid apprentices,

both full time and part time. This category of persons may,therefore, include persons engaged regularly on an hourly basis,temporary workers, out- workers, etc. The table given belowclassifies labor force across male-female and rural-urbandimensions. It is clear that

Self-employment and casual labor statuses are more prevalentamong rural than urban labor force and among female thanmale workers.

The Incidence of unemployment is higher in the urban than inthe rural labor force with nearly 48 per cent of the totalunemployed persons coming from aggregate urban labor forcewhose share in total (rural plus urban) work force is 22 percent.


6/10

Those reporting wage and salary earning dominate in theurban labor force, their share being around 62 per cent (lines10 to 12 of Table).

Composition:

Composition or categorization of labor forces can be done in many ways.Labour Force by Birthplace

Labor Force by Birth place:

In August 2000, the Australian labour force totalled 9,649,700people: 7,285,200 Australian-born and 2,364,500 overseas-born. Ofthe overseas-born, 1,359,000 people were from non-Englishspeaking countries (NESC) and 1,005,500 were from the mainEnglish speaking countries (MESC). Of migrants in the workforce,94.7 per cent of MESC migrants and 92.6 per cent of NESC migrantswere employed. This compares with 93.9 per cent in employmentfor the Australian-born. The Australian-born are more stronglyrepresented in the workforce than migrants. The participation ratesof Australian-born men and women are 75.3 and 58.9 per cent

respectively. The participation ratio for NESC men and women are63.5 and 44.1 per cent respectively and for MESC men and women72.5 and 55.7 per cent respectively


7/10

Labor Force by Education :

Following graph shows the relation between labor force and Education

Table 1: Classification

Categories of Labour Force for

each Industry Classification

No. Categories

Gender 2 Males, Females

Age groups 3 50

Education 3 Up to Primary, Between Primary to HigherSecondary ,

above Higher Secondary

Industries 31

Percentage Distribution of

Workers(of all age groups) by

Education Categories NSS Round

Upto

Primary

From Primary to

Higher Secondary

above

Higher

secondary

38th(1983) 82.22 15.34 2.4443rd(1987-88) 80.01 17.00 2.99

50th(1993-94) 74.31 21.60 4.09

55th (1999-00) 68.47 26.52 5.01

61st(2004-05) 64.72 28.17 7.12


8/10

Labor Force by Age group :

Labor Force by Area and Gender :

1983 and 1993-94. However, there was a dip in 1987-88 andthereafter in 1999-2000. The rate reached an unprecedentedmagnitude of 38 per cent in 2004-05 .

The work participation rate among males (usual principal status)shows that around half of the male population has been working.

The work participation rate increased by one percentage pointbetween 1983 and 1993-94 (excluding 1987-88 because it was adrought year) and subsequently dropped to 52 per cent in 1999-2000 before it was restored in 2004-05 at marginally above the

1993-94 figure.

Percentage Distribution of Employment

by Age Groups (years) NSS Round


9/10

Among the female population, however, only an average one-fifthhas been working. The principal status work participation ratedropped by about one percentage point in the period from 1993- 94to 1999-2000 after remaining a little below 22 per cent between1983 and 1987-88.

In 2004-05, the pre-1990s figure seems to have been restored.While the subsidiary status work participation rate among males isminuscule, it is of considerable magnitude among females; it fellperceptibly in 1999-2000 as compared with 1993-94, butseemed tobe reviving in 2004-05.

Labor Force comparision between countries:


10/10

Labor force - by occupation: (only In India)

agriculture: 53%

industry: 19%

services: 28% (2011 est.)

CONCLUSION

The above report shows the composition of labor force .

Labor force or labor market shows the relation between

employed and unemployed.

Here the report is shown according to the survey report of

National Sample Survey Organisation (NSSO) and Central

Intelligence Agency(CIA)

This report clearly explains almost all compositions of

labour force and shows relation between them, and their

inter-dependencies.

Composition of Labor Force

Documents

Transcript of Composition of Labor Force