Globalization and the adoption of liberal economic policies in India in 1991 led to rising industrial production and GDP growth. However, this "jobless growth" also resulted in decreasing employment levels. While the private sector saw some employment growth in agriculture and services, most industries experienced constant or declining employment. Additionally, employment in the public sector decreased substantially between 1991 and 2005. Overall, reforms have concentrated economic activity in the services sector and lower-employment industries, contributing to lower job creation despite increases in production and income.

1. Globalization and Employment
SREERAG.K MSW CENTRAL UNIVERSITY OF
KERALA

2.  New economic policy (NEP) was started in 1991
by India
 The theory of LPG was adopted to connect India with
global market and encourage private sector to invest
under liberalized conditions
 This approach resulted with rising industrial
production and GDP with lowering employment level
.It as been termed as job less growth
 The basic industrial production increased 6.2% in
1991-92 to 10.3% in 2006-07
 GDP average growth rate increased from 5.2% in
1990-95 to 7.1% in 2014-15

3. • But employment level decreased from 267.3 lack
in 1991 to 264.6 lack in 2005

4. Employment in NEP(in Globalization Era)
• The NEP has increased industrial production,
investment,FDI and income
• The NEP has changed the sectroal composition
composition of Indian economy agricultural,
industrial and service sectors shared
22.00,27.00,and 51% perceptively in 2003
• It shows that NEP has concentrated in services
sector .It resulted lower production and
employment
• Employment in private sector has increased but,
public sector has decreased in the age of NEP

5. Employment in private sector by Industry
1981 1991 2001 2002 2003 2004 2005
Agriculture 8.6 8.9 9.3 8.6 9.0 9.2 9.8
Mining and
quarrying
1.3 1.0 0.8 0.7 0.7 0.7 0.8
manufacturing 45.5 44.8 50.1 48.7 47.4 44.9 44.9
Elecricity,gas,water 0.4 0.4 0.5 0.4 0.5 0.5 0.5
construction 0.7 0.7 0.6 0.6 0.4 0.5 05
Wholesale and
retail
2.8 3.0 3.4 3.4 3.6 3.5 3.8
Trasport&communic
tion
0.6 0.5 0.8 0.8 0.8 0.8 0.9
Finance &Insurance 2.0 2.5 3.7 3.9 4.3 4.6 5.2
Community & Social 12.2 14.9 17.3 17.4 17.6 17.9 18.2
Total 74 76.8 86.5 84.3 84.2 82.5 84.5

6. • Employment in private sector has increased
from 76.8 lakh in 1991 to 84.5 lakh in 2005
• It is only agricultural and social sector where
increased the employment has increased in
private sector in NEP. The remaining industries
have shown either constant or decreasing
trend of employment

7. Employment in public sector
1981 1991 2001 2002 2003 2004 2005
Agriculture 4.6 5.6 5.0 4.8 5.1 4.9 5.0
Mining and quarrying 8.2 10.0 8.8 8.6 8.5 10.3 10.1
manufacturing 5.0 18.5 14.3 13.5 12.6 11.9 11.3
Elecricity,gas,water 6.8 9.1 9.4 9.2 9.1 8.7 8.6
construction 10.9 11.5 10.8 10.3 9.5 9.3 9.1
Wholesale and retail 1.2 1.5 1.6 1.6 1.8 1.8 1.8
Trasport&communicti
on
27.1 30.3 30.4 30.1 29.4 28.4 27.5
Finance &Insurance 7.5 11.9 12.8 12.3 13.8 14.1 14.1
Community & Social 73.6 92 98.3 97.4 96.1 92.8 92.5
Total 154.8 190.6 191.4 187.7 185.8 181.9 180.1

8.  Employment in public sector decreased from
190.6 lakh in 1991 to 180.1 lakh in 2005
 Employment in GOVT: sector has decreased
from 190.5 lakh in 1991 to 180.1 lakh in 2005.
 The employment in the central Govt has
decreased from 34.1 lakh in 1991 to 29.4 lakh
in 2005 while in the state Govt it has
increased from 71.1 lakh in 1991 to 72 lakh in
2005,

9. Growth Rates of employment in pre and post liberalization
period
YEAR 1991 VS 1981 2001 VS 1991 2005 VS 1991
Total employment (+) 16.72 (+) 3.92 (-) 1.01
Private sector (+) 3.78 (+) 12.63 (+) 10.02
Government
Employment
(+) 22.90 (+) 0.47 (-) 5.45

12. • The 61st National Sample Survey (NSS) round reported the
generation of 47 million additional employment opportunities
during 1999-2000 to 2004-05, implying an annual average of
9.4 million jobs against its 4.0 million annual average during
1993-94 to 1999-2000
• Employment growth rate registered a 2.6 per cent per annum
rise over the period, with labor force growing at 2.8 per cent
per annum (i.e., 0.2 per cent more than the work force),
• which resulted in increased unemployment rate of 8.3 per cent
in 2004-05. In terms of usual principal and subsidiary status
(UPSS) number of persons, unemployment rate was 2.5 per
cent in 2004-05. These reflected high rate of intermittent
unemployment during the period (Ministry of Finance 2009).
• According to planning commission around 21 million
employment generated 1994-2000 only 4% has been organized
sector and rest of 96% in unorganized sector

13. • A number of scholars have analyzed the results of the latest National
Sample Survey (NSS), that is, the 61st Round, covering 2004-05
• According to Bhalla 2008, Chandrasheker and Ghosh,in 2007 has been
revealed that there was a surge in the employment growth rate to an all-
time high of 2.82 per cent per annum during the period 1999-2000 to 2004-
05. Further, there was revival of employment growth in all the sectors of
the economy with the agriculture, secondary and tertiary sectors growing at
1.49 per cent, 5.81 per cent and 3.92 per cent per annum, respectively.
• The slow growth rate in organized sector consisting public ,enterprises,
private sector
• Employment in the sector 0.5% in 1994-2000 its very low with post periods
• 28 and 27 million jobs dealing in this sector 2002 to 2003
• According to planning commission around 21 million employment
generated 1994-2000 only 4% has been organized sector and rest of 96% in
unorganized sector

14. Trends in Employment in Organised and Unorganised Sectors in India
(inlakhs)
Year Organized sector Unorganized sector Total work force
1983 240.10 (8.33) 2640.00 (91.67) 2880.00
1987-88 257.00 (8.75) 2680.00 (91.25) 2937.00
1991-92 267.33 (8.27) 2966.22 (91.73) 3233.55
1992-93 270.56 (8.20) 3027.42 (91.80) 3297.98
1993-94 271.77 (8.09) 3089.14 (91.91) 3360.91
1994-95 273.75 (7.98) 3157.21 (92.02) 3430.96
1995-96 275.25 (7.97) 3224.26 (92.03) 3499.51
1999-2000 277.89 (7.65) 3355.41(92.35) 3633.30

15. • Accordingly, the share of organised workforce was about
8.33.per cent by 1983, which declined to 7.65 per cent by
1999-2000. The corresponding share of urorganised workforce
was about 91.67 per cent by 1983, which increased to 92.65
per cent by 1999-2000
• As per the 2001 census, the total work force in our country is
402 million, of which 313 million are main workers and 89
million are marginal workers. Out of the 313 million main
workers, about 285 million is in the unorganised sector

16. Arjun Sengupta Committee’s Report
• The Arjun Sengupta Committee report (2006) is a stark reminder of
the huge size and poor conditions in this sector. The Report has
revealed that in India, almost 370 million people- more than 85% of
the working population in India work in the unorganized sector.
• Of these, at least 120 million are women. They contribute around
60% to the national economic output of the country.
• Around 28 crore work in the rural sector, of which an estimated 22
crore are in the agricultural sector. Around 6 crore are in urban areas.
Women make up 11-12 crore, of which around 8 crore are engaged in
agriculture.
16

17. Past and Present Macro Scenario on Employment and Unemployment on CDS Basis

18. • Where as, the unemployment rate has shown an
increase during the reference period. It has decreased
from 8.3 per cent to5.99 per cent between 1983 and
1993-94 and subsequently increased to 7.32 per cent
by 1999-2000. This observation holds well in both
rural and urban areas.

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