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Employment rate declines by one per cent

With employment growth rate declining by one per cent annually during 1994-2000, the Economic Survey sought promotion of labour intensive sectors.

india Updated: Feb 27, 2003 17:30 IST

Presenting a depressed job market in the country with employment growth rate declining by one per cent annually during 1994-2000, Economic Survey sought promotion of labour intensive sectors which it said can create additional 20 million jobs during the Tenth Plan.

The Survey, tabled in the Parliament on Thursday, said, "Decline in growth rate of employment during 1990s was associated with a comparatively higher growth rate in GDP, indicating a decline in the labour intensity of production."

The absolute number of unemployed has grown during this period, it said adding the decline was largely due to a near stagnation of employment in agriculturethe share of which in total employment dropped substantially from 60 per cent in 1993-94 to 57 per cent in 1999-00.

The Survey pointed out that the employment in the organised sector was hardly 8.34 per cent, of which public sector was 5.77 per cent and private sector stood only at 2.58 per cent in the total employment generated.

Organised sector employment as on March 2001 stood at 27.8 million of which public sector employment stood at 19.1 million and private sector 8.7 million, survey said.

There was a marginal decrease of 0.6 per cent in employment in the organised sector in 2001 as compared to 2000 with employment in public sector declining by 0.9 per cent and in private sector rising merely by 0.1 per cent during 2001, it added.

Maximum number of job seekers awaiting employment were from West Bengal at 63.6 lakh while minimum were in the Union Territory of Dadra and Nagar Haveli at 0.06 lakh and Arunachal Pradesh at 0.2 lakh.

Gujarat took the lead in maximum placement whereas Uttar Pradesh topped in registration, the Survey said, adding placement effected by the employment exchanges at all India level during 2001 was recorded at 1.69 lakh as against 3.04 lakh vacancies notified during the period.

The Survey further pointed out that employment elasticity of output was down from 0.52between 1983 and 1993-94 to 0.16 between 1993-94 and 1999-00. This decline was observed in most sectors except transport, financial services and real estate.

The organised private manufacturing sector was identified as having higher employment generation potential than the public sector though it constitutes only 1.5 per cent of the total employment in the country and 16.5 per cent of total manufacturing employment.

The Survey identified agriculture, trade, restaurant and hotels including tourism, education, health, small and medium enterprises in the rural non-farm sector and transport and construction as main employment generating activities.

First Published: Feb 27, 2003 17:30 IST