Experience including best practices

in India in promoting

EMPLOYMENT & DECENT WORK

MINISTRY OF LABOUR & EMPLOYMENT

GOVERNMENT OF INDIA
 INDIA...
¾Largest & Most intensive Democracy
¾Most youthful nation
¾One Billion population
¾690 million electorate
¾Elections every five years
¾From village to national level
¾Use of 1.1 million electronic voting machines
¾Independent and strong judiciary
 …contd.

¾Active electronic media with more than 200

channels
¾With a total daily circulation of 89 million,
second largest newspaper market
¾More than 200 National and State political
parties
¾54 % population below 25 years of age a
vibrant and young nation
 India- Decent Work

• It is enshrined in our Constitution that : (Article 41)

“the State shall within the limits of its economic

capacity and development, make effective provision
for securing the right to work, to education and to
public assistance in the cases of unemployment, old
age, sickness and disablement and in other cases of
of undeserved want.”
 India-Decent Work

• Decent work assumes special relevance for India

as
–it provides a holistic framework for shaping policies
and action
–it calls for integration of economic and social
objectives in line with the essence of four pillars of
Decent Work.
–it provides a paradigm that can be instrumental in
addressing the challenge of a vast informal
economy
 Employment Promotion
• Employment creation and skill development
are the thrust areas of India’s Economic
Planning.
• Several schemes are being implemented for
creation of employment such as:
– Golden Jubilee Urban Employment Scheme
– National Rural Employment Guarantee Scheme
– Prime Minister’s Employment Scheme
– Golden Jubilee Rural Self Employment Scheme;
– Prime Minister’s Bharat Nirman Scheme
– Urban Self Employment Programme
 Rights at Work and Social
Dialogue
• Government of India has accorded high priority
to Rights at work and social dialogue.
–These principles are ensured through
Constitutional provisions, laws, regulations and
practices
–The Constitution of India guarantees the freedom
of association and freedom of expression and
these rights are being exercised in a free and fair
manner
 Rights at Work and Social
Dialogue
• The right of collective bargaining and freedom of
association has legal backing from two very
important Labour statutes:
–Industrial Disputes Act, 1947
–Trade Union Act, 1926
• Tripartite Consultation
• Employees working in Government:
• Joint Consultative Machinery (JCM)
• High degree of job security to Government
Employees flowing from Article 311 of the
Constitution
• Administrative tribunals for the redressal of their
grievances
 Social Protection
• Social aspect of development has always
been central objective in the process of
Economic development .
• Social protection is ensured to the workforce
in India through various legislations:
–Minimum Wages Act,1948
–Equal Remuneration Act,1976
–The Maternity benefit Act, 1961
–Plantation Labour Act, 1951
– The Contract Labour (Regulation and abolition) Act,1970
 Social Protection Contd.

–Inter-State Migrant workers (Regulation of

Employment and condition of service)Act, 1979
–Employees State Insurance Act,,1948
–Employees Provident Fund and Miscellaneous
Provisions Act, 1952
–Workmen Compensation Act,1923
–Payment of Gratuity Act1972
–Child Labour (Prohibition &Regulation) Act, 1986
–Social Security to Unorganised Sector Bill 2007
(introduced in the Parliament in September 2007)
 Social Protection Contd.

• Social Security Schemes:

–National Health Insurance Scheme ( health cover
for Below Poverty line workers)
• Around 300million person will get the benefit

–Common Man Insurance Scheme

–National Old Age Pension Scheme

Global Scenario: Projected Surplus or
Deficit 2020

(2020)

Global Deficit 46
mn in 2020
India with
47 mn people India’s unique
surplus in 2020 window of
opportunity
Skill Development
holds the key
 Poverty alleviation & Employment
Generation
¾National Common Minimum Programme: aims at
human development and creation of Social infrastructure
1.National Rural Employment Guarantee
Programme(NREGP):
•NREG Act passed in September 2005.
•Gives 100 days guaranteed unskilled wage employment
to each rural household opting for it.
•Job cards issued to all participants
•US $ 10.15 billion per annum outlay when fully
operational. (present outlay USD 3 Billion)
•Focuses on works relating to water conservation,
drought proofing, afforestation, land development, rural
connectivity in terms of all weather roads, etc.
•Implementation through village local bodies.
Poverty alleviation & Employment Generation
(contd…)
2. Swarna Jayanti Gram Swarojgar Yojana (SJGSY)-
(Rural Employment Programme)
•A holistic self employment generation programme since
1999.
•A focused approach to poverty alleviation by capitalising
advantages of group lending.
•Upto Dec., 2006, about 2.5 million self help groups
formed, 7.5 million persons assisted with US$ 4.2 billion.
3. Swarna Jayanti Shahri Rojgar Yojana (SJSRY)-
(Urban Employment Programme):
•Aims at skill development and employment (i)self-
employment and (ii) wage employment by utilizing their
labour for creation of socially & economically useful
public assets.
•Financial assistance and credit provided by Government
and Commercial banks, since 1997.
•More than 1 million micro enterprises set up and about a
million persons provided skill training/ upgradation.
 Poverty alleviation & Employment Generation
(contd…)
4. Jawaharlal Nehru National Urban Renewal Mission
(JNNURM)
• Started in 2005-06. for a seven year period.
• Aims at upgradation of urban housing and
infrastructural facilities in 63 selected cities of the
country.
• Annual allocation is US $ 1.24 billion.
5. Prime Minister’s Self Employment Scheme: aims at
providing self employment opportunities to educated
youth.
• Started in 1993.
• Assistance by way of credit and subsidy by commercial
banks and Government.
• Unit cost upto US$ 5000 without any collateral security.
• 2.6 million units established, US $ 4.06 billion loan
granted and about 4 million jobs created till Dec. 2006.
 Poverty alleviation & Employment
Generation (contd…)
6. Bharat Nirman (Build India Programme):
aims at creation of massive rural infrastructure during
2005-09.
• Irrigation- 10 million hectare additional irrigation
capacity.
• Rural roads- Connect all remaining 66,802 habitations
above population of 1000 by all weather roads.
• Rural housing- construct 6 million houses for rural
poor.
• Rural water supply- provide potable water to
unconnected 55,067 habitations.
• Rural electrification- provide electricity to remaining
un-electrified 1,25,000 villages.
• Rural telephony- connect remaining 66,822 villages
with a public telephone.
• Total investment per annum- US $ 4.75 billion.
 Skill Development
• 5% skilled workforce. PM’s resolve to raise
percentage to 50% by 2021.
• Major Programmes:
1. Upgradation of 500 Govt. Industrial Training
Institutes (I.T.Is) with World bank assistance at
a cost of US $ 0.4 billion into Centres of
Excellence.
• Number of trades being increased from 107 to 2000.
• Modular courses being introduced.
• Closer involvement of industry in training by
forming Institute Management Committees with
Industry partner as Chairman.
 Skill Development (contd…)
2. Upgradation of 1400 remaining Government ITIs
in Public Private Partnership mode at a cost of
US $ 0.9 billion.
• A lead industry partner involved in upgradation of ITI.
• Employability being ensured by setting up of placement
bureaux in ITIs.
3. Skill Development Initiative at cost of US $ 0.14
billion.
• Train one million youth in 5 years and then one million
every year.
• Modular employable skills
• Multi-entry and multi-exit options with flexible delivery
schedule.
• Life long learning.
 Skill Development (contd…)
4. Creation of about 50,000 more ICT based Skill
Development Centres in next five years.
• In Public Private Partnership mode.
• At a total cost of about US $ 6.35 billion in next five years.
Other Initiatives:
1. National Employment service:
• Being provided through a network of 947 employment
exchanges in the country.
• Being computerized and a national web portal is being
developed to enhance employability of trainees and facilitate
industry to get skilled work force.
2. About 94% Workforce in the unorganised sector
• A comprehensive bill for providing social security, wages,
insurance cover and pensionary benefits is being brought in
the current session of Parliament to roll back informality and
provide decent working conditions.
• Estimated cost is about US $ 7.62 billion per annum.
 Growth Scenario
S.No. Plan period Period Growth rate

1. 9th Plan 1997-2002 5.55

2. 10th Plan 2002-2007 8%
3. 11th Plan 2007-2012 9% ** (proposed)
4. 12th Plan 2012-2017 10% *(proposed)

* A sustained growth rate of 10% over 11th & 12th Five

Year Plan Period will double per capita income from the
present level of US $ 840.
** Target agricultural growth rate to 4% from the present
1.7%
 Poverty Scenario
S. No Year Population below poverty
line
1. 1993-1994 36%

2. 1999-2000 26.1%

3. 2004-2005 24.8%

4. 2007-2012 11.8% (Target)

 Employment Scenario
S. ITEM 1993-94 1999-2000 2004-05
No. (Million) (Million) (Million)
1 Total Labour Force 382.0 406.0 469.9
2 Total Employment 374 397.0 459.1
3 Open Unemployment 7.5 9.0 10.8
4 Unemployment rates 1.9% Around 2.3%
as percentage of total 2.23%
labour force
5 Employment in the 28 28.0 26.3
organized Sector
6 Employment in the 346.0 369.0 432.8
unorganized Sector
7 Jobs created per - 4.6 12.4 *
annum
8 Working Poor - 122.0 130.0
* During Xth Plan Period (2002-2007) 62 million jobs were created @12.4 million
jobs per annum
During XI plan period (2007-12), 14 m jobs per annum are planned to be created
 Structure of GDP and Workforce
Sector Percentage in GPD Workforce (in Million)
Share
1999-2000 2004-2005 1999-2000 2004-2005
Primary 25.0 18.8 240.3 271.3
(60.5) (59.1)
Secondary 25.3 27.5 66.9 80.8
(16.9) (17.6)
Tertiary 49.7 53.7 90.3 107.4
(20.6) (23.3)
Total 100.0 100.0 397.0 459.1
(100.0) (100.0)
Figures in brackets indicate percentage to total
 GDP Growth Rate

Sector 9th Plan 10th Plan

Agriculture 2.0 1.7

Industry 4.6 8.3

Services 8.1 9.0

Total 5.5 7.2

Employment in Organized and Unorganized
Sector by Industry (in million)
Industry Total Organized Sector Unorganized
Employment Employment Sector Emp.
1999- 2004- 1999- 2004- 1999- 2004-
2000 2005 2000 2005 2000 05
Agriculture 238.0 268.57 1.4 1.41 236.0 267.16

Mining & 2.3 2.75 1.0 1.10 1.3 1.65

Quarrying

Manufacturing 48.0 53.71 6.6 5.68 41.4 48.63

Electricity, 1.3 1.38 1.0 0.92 0.3 0.46

Gas & Water
Supply
Construction 17.6 25.71 1.1 0.98 16.5 24.73
Employment in Organized and Unorganized
Sector by Industry (in million)
Industry Total Organized Unorganized
Employment Sector Emp. Sector Emp.
1999- 2004- 1999- 2004- 1999- 2004-
2000 2005 2000 2005 2000 05
Trade 37.3 47.29 0.5 0.53 36.8 46.76

Transport, 14.7 17.45 3.2 2.90 11.5 14.55

Storage &
Communication
Financial 5.1 6.89 1.7 1.90 3.4 4.99
Services
Community, 33.2 35.81 11.5 11.07 21.7 24.74
Social &
Personal
Service
Total 397.0 459.10 32.66 28.0 26.44 369.04
Employment
Task force on Employment Opportunities(2001)
Report submitted by Task Force identified five broad
areas of policy which together would constitute an
appropriate strategy for employment generation, namely

(i) accelerating the rate of GDP growth with emphasis on

sectors likely to ensure the spread of income to the low
segments of the labour force,

(ii) pursuing appropriate sectoral policies in individual

sectors which are particularly important for employment
generation,
Task force on Employment Opportunities(2001)

(iii) implementing focused special programmes for

creating additional employment and income to
help vulnerable groups,
(iv) pursuing suitable policies for education and
skill development which would upgrade the quality
of labour force, making it capable of supporting a
growth process which generates high quality jobs,
and
(v) ensuring that the policy and legal environment
governing the labour market encourages labour
absorption, especially in the organized sector.
 Special Group for Targeting Ten Million
Employment Opportunities Per Year Over The
Tenth Plan Period (2002)
To negate effects of Employment decline in
80’s and 90’s due to rightsizing and pattern of
growth moving in capital Intensive sectors
following was decided:
• Use of Labour Intensive Technology.
• Use of Capital Saving Technology.
• Rejuvenate growth of unorganized sector.
• Target of creating additional 29.67 million
job opportunities growth based and 19.32
million programme based over 5 years
period (2002-07).
 Special Group for Targeting Ten Million
Employment Opportunities Per Year Over The
Tenth Plan Period (2002)
Areas of Employment Targeted
Agriculture, social forestry, animal
husbandry, fishing, horticulture and
related areas and small and medium
industries, construction, tourism,
information technology, financial sector,
education and health
 Second National Commission on
Labour 2002
• Recommended adoption of system for
getting participation from Government,
Industry and Trade Unions
• Modular Approach to vocational Training ,
aid multi skilling, impart skills attuned to
market and technology
• Introduced competence based certification
system independent regulatory authority
and Skill development fund
•
EMPLOYMENT SUMMIT 2006
• Social partners to play effective role in
negating effects of capital intensity
• Employers to create training facilities and
view it as investment
• Trade unions to ensure responsible wage
determination
• Local government to bring partners
together for tapping local capacity and
local market for identifying sources of job
 EMPLOYMENT SUMMIT 2006
High growth areas identified
• Automotive Sector
• Banking and Financial Services
• Basic Metals
• Chemical Products
• Construction
• Defence Equipment
• Electronic Component and Assemblies
• Energy
• Floriculture Industry
• Food Products
• Gems & Jewellery
• Handicrafts
• Handloom Sector
• Healthcare
• Horticulture
 EMPLOYMENT SUMMIT 2006
High growth areas identified
• Insurance
• IT / ITES / BPO
• Jute & Jute Products
• Khadi & Village Industries
• Leather
• Machinery & Equipment
• Media & Entertainment
• Mining
• Nonmetallic Mineral Products
• Paper & Paper Products
• Plastics & Plastic Processing Industry
• Printing
• Retail Services
• Rubber & Rubber Products
• Telecom
• Textiles & Apparels
• Tobacco & Tobacco Products
• Tourism
• Transport Equipment
• Transport services
• Wood Products
 Plan for the future
Employment
• 11th Five Year Plan (2007-2012)aims to:
– Accelerate GDP growth rate from 8% to 10 %
– Sectoral Growth targets:
• 4/1% agriculture
• 10.5% Industry
• 9.9% services
– Creation of 70 millions new work opportunities
– Reduction of educated unemployment below 5%
– Raising wages of unskilled worker by 20 %
– Employment Generation in food processing , leather products,
textiles, services and constructions
 ILO DECENT WORK PROGRAMME IN INDIA (DWCP)

Preliminary Work plan- Priority 1

• Policy level: Studies on key challenges to suggest policy
options/strategies in consultation with partners
– National Employment and Training Policy
– Labour Laws for MSEs, cluster development, child care,
gender analyses youth employment, migration, labour
market reform, DW indicators, employment relationship,
strengthening labour administration
• Dialogue with policy makers employers and workers
organization, academicians, researchers etc.
• Operational level:
– Extending GoI’s training/employment to informal
economy
– Value addition to NREGP by integrating DW approach
– Strengthening sectoral/area based approaches for
sustainable livelihood, specially for women
 ILO DECENT WORK PROGRAMME IN INDIA (DWCP)

Preliminary Work plan- Priority 2

• Social Security
– Technical collaboration with MoL&E, National
Commission on Enterprises in Unorganized sectors
and social partners in shaping most appropriate bill
targeting informal economy workers
• Social Protection- develop activities relating to:
– Knowledge development
– Capacity building
– Advocacy
• Provide Inputs/Technical cooperation to evolve
policies on
– HIV/AIDS
– Occupational Safety
– Migration
 ILO DECENT WORK PROGRAMME IN INDIA (DWCP)

Preliminary Work Plan –Priority 3

• Ongoing programme on child labour:
– INDUS
– Andhra Pradesh State based Project on Child Labour
– Karnataka Child Labour Programme
• Pipeline:
– Support to GoI convergence model and other
initiatives on child labour elimination and prevention
– IPEC/SIMPOC methodology for NCLS
• Study tours for value addition on child labour and trafficking
• Pilot Programmes on prevention of bonded labour in 2
district in Tamil Nadu and Programme development for
other selected States
Thank You