Structure of Labour Force And Demographic Changes: Problems and Challenges

Presented By:Nidhi Jain

Presentation On :

Labour Force In IndiaLabour 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

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 BenefitThe present ESIC Contribution Rates are Employees- 1.75% of wages Employers- 4.75% of wages.

Latest NumbersSEASONALLY 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

Bureau of Labor Statistics

Employment Situation

CategoryAug.2016

Sept.2016

Change from:Aug.

2016-Sept.2016

Employed 151,614 151,968 354Employment-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.

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

Bureau of Labor Statistics

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

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

Bureau of Labor Statistics

Mean Of per Capita Labour Income

Sex ratios

A population’s sex ratio can affect its growth rate.

Figure 7.13

Bureau of Labor Statistics

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

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