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Structure of Labour Force
And Demographic Changes:
Problems and Challenges
Presented
By:
Nidhi Jain
Presentation On :
Labour Force In India
Labour in India refers to employment in the economy of
India. In 2012, there were around 487 million workers.
Over 94 percent of India's working population is part of the
unorganized sector.
The unorganized sector has low productivity and offers lower
wages. Even though it accounted for over 94 percent of
workers, India's unorganized sector created just 57 percent of
India's national domestic product.
Bureau of Labor Statistics
NEED OF SOCIAL SECURITY
The main strength of the Social Security system is
that it acts as a facilitator. The success of Social
Security schemes however requires the active support
and involvement of employees and employers.
Bureau of Labor Statistics
Some Social Security Acts
 The Employees’ State Insurance Act, 1948 (ESI Act)
 The Employees’ Provident Funds Act, 1952 (EPF Act)
 The Employees' Compensation Act, 1923 (WC Act)
 The Maternity Benefit Act, 1961 (M.B. Act)
 The Payment of Gratuity Act, 1972 (P.G. Act)
Bureau of Labor Statistics
Employees’ Provident Fund
Organization (EPFO)
EPFO has focused its effort on automation of the work
processes to achieve better efficiency and improved service
delivery to its members.
The members can also get their PF balances on their mobile
phones through a link “Know Your P F Balance”
onwww.epfindia.gov.in
Bureau of Labor Statistics
Employees’ State Insurance
Corporation (ESIC)
The Employees’ State Insurance Scheme provides comprehensive
medical care to Insured Persons, their family and also to their
dependents. The ESI Scheme provides following benefits to the
Insured Persons:-
 Medical Benefit
 Sickness Benefit
 Maternity Benefit
 Disablement Benefit
 Dependent Benefit
The present ESIC Contribution Rates are Employees- 1.75% of
wages Employers- 4.75% of wages.
Bureau of Labor Statistics
Latest Numbers
SEASONALLY ADJUSTED
 Unemployment Rate:
5.0% in Sep 2016
 Change in Unemployment Level:
+90,000 in Sep 2016
 Change in Employment Level:
+354,000 in Sep 2016
 Civilian Labor Force Participation Rate:
62.9% in Sep 2016
 Employment-Population Ratio:
59.8% in Sep 2016
Employment Situation
Category
Aug.
2016
Sept.
2016
Change from:
Aug.
2016-
Sept.
2016
Employed 151,614 151,968 354
Employment-
population ratio
59.7 59.8 0.1
Unemployed 7,849 7,939 90
Unemployment rate 4.9 5.0 0.1
Not in labor force 94,391 94,184 -207
Bureau of Labor Statistics
Labour Market Structure
 It consists of 3 sectors.
 Rural Workers constitute over 60% of workforce.
 Organized sector contributes only 8% of workforce,
producing 40% of GDP.
Bureau of Labor Statistics
Problems
Economic growth in India, which has accelerated in recent
years, has shown some disturbing characteristics :
 Growth of tertiary sector
 Encouragement to productivity rather than employment
 Bi-modal (small and large) scale establishments.
1. Surplus Labour Force
2. Lack of Absorption of Skilled Labour
3. Imperfections
4. Work Culture
5. Unemployment
Major Problems Faced by
Labor Market in India
Demography
 The general science of studying human population.
 It is the statistics of the population that is subjected to change in
accordance with aging, birth, death, migration etc.
 The demography of any place helps to gather information about
the population, religion, language and ethnicity of that place.
 Demography can be understood through census.
Bureau of Labor Statistics
What Means Demography
change??
 Birth rate
 Life Expectancy
 Migration Balance
Bureau of Labor Statistics
Indian life expectancy began to rise
around 1900, here simulated to go from
24 to 80 years.
Life expectancy in years
Actual data (*)
Indian fertility began to fall around
1960, here simulated to go from 6 to
2.1 births.
Children per woman
Mean Of per Capita Labour
Income
Bureau of Labor Statistics
Sex ratios
A population’s sex
ratio can affect
its growth rate.
Figure 7.13
Life expectancy
 In 1900 life expectancy was 47.3 years
 By 1950 life expectancy was up to 68.2 years
 2010 life expectancy was 78.7 years
Bureau of Labor Statistics
Education
 Between 1970 and 2001 the percentage of elderly who
had completed high school increased from 28% to 70%
 By 2030 estimated that 83% will have completed high
school
 By 2030 estimated 24% with bachelor’s degree up from
15%
Is population growth really a
problem?
Some say NO:
 People can find or manufacture
additional resources to keep
pace with population growth.
 Nations become stronger as
their populations grow.
Some say YES:
 Not all resources can be
replaced.
 Even if they could, quality of
life suffers.
 Nations do not become
stronger as their populations
grow.
Challenges
 Human population is rising by 79 million people annually.
 Many more people are born into poverty than into wealth.
 Rich and poor nations are divided by a “wealth gap.”
 Population growth has severe environmental effects.
Solutions
 Expanding women’s rights is crucial to encourage the demographic
transition.
 Health and reproductive education and counseling can reduce fertility
rates.
 Education, medicine, and policies can lessen the toll of HIV/AIDS.
 New “green” technologies can help reduce population growth’s
environmental impacts.
Population ageing
presents many
opportunities if we
address the
challenges it posses.
Bureau of Labor Statistics

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Structure of labor force and demographic change

  • 1. Structure of Labour Force And Demographic Changes: Problems and Challenges Presented By: Nidhi Jain Presentation On :
  • 2. Labour Force In India Labour in India refers to employment in the economy of India. In 2012, there were around 487 million workers. Over 94 percent of India's working population is part of the unorganized sector. The unorganized sector has low productivity and offers lower wages. Even though it accounted for over 94 percent of workers, India's unorganized sector created just 57 percent of India's national domestic product. Bureau of Labor Statistics
  • 3. NEED OF SOCIAL SECURITY The main strength of the Social Security system is that it acts as a facilitator. The success of Social Security schemes however requires the active support and involvement of employees and employers. Bureau of Labor Statistics
  • 4. Some Social Security Acts  The Employees’ State Insurance Act, 1948 (ESI Act)  The Employees’ Provident Funds Act, 1952 (EPF Act)  The Employees' Compensation Act, 1923 (WC Act)  The Maternity Benefit Act, 1961 (M.B. Act)  The Payment of Gratuity Act, 1972 (P.G. Act) Bureau of Labor Statistics
  • 5. Employees’ Provident Fund Organization (EPFO) EPFO has focused its effort on automation of the work processes to achieve better efficiency and improved service delivery to its members. The members can also get their PF balances on their mobile phones through a link “Know Your P F Balance” onwww.epfindia.gov.in Bureau of Labor Statistics
  • 6. Employees’ State Insurance Corporation (ESIC) The Employees’ State Insurance Scheme provides comprehensive medical care to Insured Persons, their family and also to their dependents. The ESI Scheme provides following benefits to the Insured Persons:-  Medical Benefit  Sickness Benefit  Maternity Benefit  Disablement Benefit  Dependent Benefit The present ESIC Contribution Rates are Employees- 1.75% of wages Employers- 4.75% of wages. Bureau of Labor Statistics
  • 7. Latest Numbers SEASONALLY ADJUSTED  Unemployment Rate: 5.0% in Sep 2016  Change in Unemployment Level: +90,000 in Sep 2016  Change in Employment Level: +354,000 in Sep 2016  Civilian Labor Force Participation Rate: 62.9% in Sep 2016  Employment-Population Ratio: 59.8% in Sep 2016
  • 8. Employment Situation Category Aug. 2016 Sept. 2016 Change from: Aug. 2016- Sept. 2016 Employed 151,614 151,968 354 Employment- population ratio 59.7 59.8 0.1 Unemployed 7,849 7,939 90 Unemployment rate 4.9 5.0 0.1 Not in labor force 94,391 94,184 -207 Bureau of Labor Statistics
  • 9. Labour Market Structure  It consists of 3 sectors.  Rural Workers constitute over 60% of workforce.  Organized sector contributes only 8% of workforce, producing 40% of GDP. Bureau of Labor Statistics
  • 10. Problems Economic growth in India, which has accelerated in recent years, has shown some disturbing characteristics :  Growth of tertiary sector  Encouragement to productivity rather than employment  Bi-modal (small and large) scale establishments.
  • 11. 1. Surplus Labour Force 2. Lack of Absorption of Skilled Labour 3. Imperfections 4. Work Culture 5. Unemployment Major Problems Faced by Labor Market in India
  • 12. Demography  The general science of studying human population.  It is the statistics of the population that is subjected to change in accordance with aging, birth, death, migration etc.  The demography of any place helps to gather information about the population, religion, language and ethnicity of that place.  Demography can be understood through census. Bureau of Labor Statistics
  • 13. What Means Demography change??  Birth rate  Life Expectancy  Migration Balance Bureau of Labor Statistics
  • 14. Indian life expectancy began to rise around 1900, here simulated to go from 24 to 80 years. Life expectancy in years Actual data (*)
  • 15. Indian fertility began to fall around 1960, here simulated to go from 6 to 2.1 births. Children per woman
  • 16. Mean Of per Capita Labour Income Bureau of Labor Statistics
  • 17. Sex ratios A population’s sex ratio can affect its growth rate. Figure 7.13
  • 18. Life expectancy  In 1900 life expectancy was 47.3 years  By 1950 life expectancy was up to 68.2 years  2010 life expectancy was 78.7 years Bureau of Labor Statistics
  • 19. Education  Between 1970 and 2001 the percentage of elderly who had completed high school increased from 28% to 70%  By 2030 estimated that 83% will have completed high school  By 2030 estimated 24% with bachelor’s degree up from 15%
  • 20. Is population growth really a problem? Some say NO:  People can find or manufacture additional resources to keep pace with population growth.  Nations become stronger as their populations grow. Some say YES:  Not all resources can be replaced.  Even if they could, quality of life suffers.  Nations do not become stronger as their populations grow.
  • 21. Challenges  Human population is rising by 79 million people annually.  Many more people are born into poverty than into wealth.  Rich and poor nations are divided by a “wealth gap.”  Population growth has severe environmental effects.
  • 22. Solutions  Expanding women’s rights is crucial to encourage the demographic transition.  Health and reproductive education and counseling can reduce fertility rates.  Education, medicine, and policies can lessen the toll of HIV/AIDS.  New “green” technologies can help reduce population growth’s environmental impacts.
  • 23. Population ageing presents many opportunities if we address the challenges it posses.
  • 24.
  • 25. Bureau of Labor Statistics