According to the All-India Quarterly Establishment-based Employment Survey, 27% of establishments cut jobs between 25 March and 30 June, 2020. While, 19% employees in nine non-farm sectors, did not receive full wages. This was the period that saw a nationwide lockdown due to COVID-19.
The report also showed that the overall rate of employment in India has increased by 29% over the last six years, since 2013-14.
As was being expected by economists, among the sectors that fared well were IT/BPO, health, transport, financial services, construction, education and manufacturing. Other than trade, accommodation and restaurants, all sectors saw an increase in employment.
Akin to what trends and news reports have been suggesting for some time, the proportion of female workers also declined by 2% from an already low 31%, to just 29%.
The report collected data from 10,593 establishments that employed more than 10 workers. These establishments were spread over nine sectors that contribute to 85% of total employment in India.
Employment in the trade sector came down by 25%, while this decline was 13% in accommodation and restaurants.
The report also said that of the total workforce employed by the nine sectors, 88% are regular workers and only 2% casual workers. It is only in the construction sector where 18% employees are contractual, while 13% are casual workers.
DECLINE IN FEMALE WORKERS
The proportion of female workers employed in formal sectors declined from 31% in 2013-14 to 29% at present.
Women’s involvement in formal sector employment has shrunk to 29.3% while men constitute nearly 70.7% of India’s workforce.
However, it is important to note that a majority of women are employed in informal sectors. Among the women employed in the formal sector, a majority work in traditional sectors like education and health sectors. The number of formally self-employed women is very worrying. It is a negligible 0.2%.
The least number of women are employed in the transport (18%) and manufacturing sectors (23%).
A majority of those employed in the workforce do not have higher qualifications. This is indicative of the quality of jobs that are generated.
Only 31% are graduates or have higher qualifications, excluding the education and health sectors.
The report also found that 18% of establishments provide skill development programmes for their employees.
The total number of vacancies in these sectors is over 1,87,000, and 39% of these are not due to retirement or resignations. The highest number of vacancies are in the manufacturing sector, followed by education.
COVID-19 AND EMPLOYMENT
Even during the pandemic when most workplaces were closed, between March 25 to June 30, 2020, 81% of the surveyed workers received full wages while 3% did not earn anything.
While 27% of establishments cut jobs during the first lockdown, 4% even hired more people.
Among the sectors where over 90% employees received full wages were health and financial sectors. Whereas, in the construction sector, 27% employees faced a pay cut and 7% were denied any wages entirely.
The highest number of operational establishments during the pandemic were in the health sector, followed by the financial services sector.
The highest number of non-operational establishments were in the education, accommodation and restaurants, and trade sector.
Employment stayed nearly unaffected in the education sector despite the establishments being shut. But in manufacturing, construction and accommodation and restaurants sector, employment fell considerably.
The full report can be accessed here:
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