A presentation on employment and skill development in India's 12th Five year plan (2012-2017)

1. Employment and Skill Development-
Strategies for Enhancing Employability and Generation of Employment

2. Current Employment Scenario
• 11th Plan targeted creation of 58 million job opportunities - 18 million
work opportunities created on CDS basis between 2004-05 & 2009-
10.
• Unemployment rate declined from 8.28% in 2004-05 to 6.6% in 2009-
10 on CDS basis & from 2.3% to 2% on UPSS basis.
• LFPR declined from 43% to 40% & WFPR from 42% to 39.2%
between 2004-05 and 2009-10.
• Increase in Salaries and Wages of regular & casual workers between
2004-05 and 2009-10.
• Share of informal sector employment increased marginally from
92.4% (2004-05) to 92.8% (2009-10).
• Sectoral share: Decline in agriculture & manufacturing, increase in
non-manufacturing which includes construction, marginal increase in
services.
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3. Employment Indicators by UPSS basis (%) Persons
Labour Force Work Force Unemployment
Participation Rate Participation Rate Rate
Years 2004-05 2009-10 1999-00 2004-05 2009-10 2004-05 2009-10
Rural 44.6 41.4 41.7 43.9 40.8 1.7 1.6
Urban 38.2 36.2 33.7 36.5 35.0 4.5 3.4
All 43.0 40.0 39.7 42.0 39.2 2.3 2.0
Source: NSS 61st and 66th Rounds

4. UNEMPLOYMENT RATE UPSS Basis (%) Persons
5
4.7
4.5
4.5
4
3.4
3.5
3
(%) Persons
2.5 Rural
Urban
2
1.7 1.6
1.5
1.5
1
0.5
0
1999-00 2004-05 2009-10
Source: NSS 55th,61st and 66th Rounds

5. EMPLOYMENT INDICATORS
LFPR (%) Persons WFPR (%) Persons
60
60
40
40 Rural
(%) Persons
% Persons
Rural
Urban
Urban
20 20
0 0
1999-00 2004-05 2009-10 1999-00 2004-05 2009-10
Years Years
Labour Force Participation Rate Work Force Participation Rate
Source: NSS 55th,61st and 66th Rounds

6. Employment by Different Categories
Category of Worker 2004-05 2009-10
(in million) (in million)
Self Employed 258.4 232.7
(56.4%) (50.7%)
Regular /Salaried 69.7 75.1
Employee (15.2%) (16.4%)
Casual Labour 129.7 151.3
(28.3%) (33.0%)
Source: Calculated from NSS 61st and 66th Rounds

7. Level of Education of the Labour Force
General education level of India’s labour force in the age group 15-59 remains
extremely low.
Numbers Share in Labour Share in Labour
(15-59) Force in age group Force (470.1 million)
(million.) 15-59 (per cent) (per cent)
Not literate 125.65 29.14 26.73
Literate without formal
2.12 0.49 0.45
schooling
Below Primary + Primary 102.38 23.74 21.78
Middle 76.08 17.64 16.18
Secondary 52.39 12.15 11.14
Higher Secondary 29.19 6.77 6.21
Diploma/certificate course 6.02 1.40 1.28
Graduate 28.01 6.49 5.96
Graduate and above 9.40 2.18 2.00
Total 431.23 100.00 91.73
Source: NSS 66th Round 2009-10

8. Formal & Informal Employment (Millions)
Sectors 2004-05 2009-10
Formal 34.90 (7.6) 33.00 (7.2)
Informal 422.60 (92.4) 427.22 (92.8)
Total 457.50 460.22
Organized & Unorganized Sector Employment (Million)
Sectors 2004-05
2009-10
Unorganized 394.9 387.34
Organized 62.6 72.88
Total 457.5 460.22
Source: For 2009-10, computed from NSS 66th round; while for 2004-05 taken
from NCEUS, 2007

9. Proportionate Share of Sectors in Employment
70
59.9
60
56.6
53.2
50
40
1999-00
% Terms
2004-05
30 2009-10
24.7 25.3
23.7
20
12.2
11.1 11 10.5
10
6.5
5.3
0
Agriculture Manufacturing Non- Manufacturing Services
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10. Estimated Number of Workers by Level of Education by Sector (millions) in 2009-10
Agriculture & Non-
Manufacture Service Total
Allied Manufacture
Not Literate 87.36 9.56 14.42 13.65 124.99
Literate without
1.23 0.25 0.21 0.42 2.11
formal Schooling
Below Primary
57.62 12.69 12.47 18.32 101.1
+ Primary
Middle 36.2 10.27 8.67 18.98 74.12
Secondary 21.30 7.02 4.27 18.21 50.79
Higher Secondary 10.36 3.21 1.45 12.43 27.45
Diploma/Certificate
0.58 1.16 0.53 3.12 5.39
Course
Graduate 3.84 3.01 1.25 17.82 25.93
Graduate & Above 0.74 0.73 0.24 7.00 8.70
Total 219.23 47.90 43.50 109.96 420.59
Source: Computed from NSS (66th Round), 2009-10

11. Apprentices in India (Under the Apprenticeship Training Act ,1961)
Graduate, Technician & Technician (Vocational)
Trade Apprentices (M/o Labour & Employment)
Apprentices (M/o HRD)
Seat Available Seat Utilised Seat Available Seat Utilised
Year Per Cent Utilised Per Cent Utilised
(Lakhs) (Lakhs) (Lakhs) (Lakhs)
Up to March 2011 3.37 2.21 65.57 1.02 0.65 63.74
Source : Ministry of Labour & Employment

12. Major Challenge – Present Labour Market Scenario
Ineffective Models
Predominance of Unorganized Labour Laws Training Mismatch
Sector
Skill mismatch-
84% of the unorganized sector Unemployment high
Inflexible labour laws viz;
outside the purview of labour among educated
Contract Labour (R&A)
laws unemployed;
Act, Apprentices Act,
Informalization of employment 90% of workforce outside
Industrial Disputes Act etc
in the organized sector the coverage of formal
training
Rethink in the Strategy
Inclusive growth strategy Objective to
achieve 50
Emphasis on market-driven million non-farm
Job Creation
Education & Training employment by
Coordinated involvement of 2017
Central Ministries/ States

13. ACTION PLAN
• Thrust on Manufacturing Sector – to make it the engine of
employment growth – that would create 10 million additional
jobs during the 12th Plan.
• To bring in supportive policies to incentivize labour intensive
manufacturing sectors such as textile & garments, leather &
footwear, food processing, gems & jewellery to generate more
employment.
• Expanding employment in services like IT, finance & banking,
tourism, trade & transport.
• Prioritizing skill training for the informal sector; creation of
appropriate skill sets among rural migrants and urban poor to
make growth inclusive.
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14. ACTION PLAN
• Ensuring the employability of skill training by involving Sector Skill
Councils in preparation of Skill Modules matching market demand.
• Building on the potential of Modular Employable Skill programme by
ensuring combination of modules to guarantee employability.
• Extending Social Security benefits to Unorganized Sector workers.
• Enable skill loans for poor students (Credit Guarantee Fund)
• Streamlining the skill development programs for disadvantaged
sections to ensure much larger funding for skill development.
• Setting up of National Skill Registry to link data bases across
Ministries/States to provide a platform linking people who seek/provide
employment.
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15. Expected Outcomes by 2017
• To create 50 million additional non-farm job opportunities in
manufacturing and service sector.
• Increase skilled workforce to at least 50 million.
• Increase percentage of workforce receiving formal training from
present 10% to 25%.
• Doubling the annual training capacity from the existing 4.5 million.
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