|6th Five Year Plan||
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One of the principal objectives of the Sixth Five Year Plan is the progressive reduction of unemployment in the country. In order to frame appropriate policies and programmes in different economic sectors towards realisation of this objective, a realistic appreciation of the nature and magnitude of the problem in all its ramifications is essential. An attempt has been made in this Chapter to obtain labour force projections for the base and terminal years of the Sixth Plan and to examine in some detail the main aspects of employment and unemployment situation based on the latest available data. Suitable policy measures are then proposed. Estimates of employment likely to be generated as a result of the Plan allocations and policies and programmes are also presented. Special attention has been paid to women and educated manpower both in the analysis of the existing employment market and formulation of suitable policies for them. The section on 'New Deal for the Self-Employed' enumerates the various measures by the Government to help persons who desire to take up self-employment ventures.
LABOUR FORCE, UNEMPLOYMENT AND EMPLOYMENT
13.2 In the next few sections, the concepts and definitions of various measures under discussion are presented and the broad characteristics of unemployment and employment analysed.
Concepts and Definitions
13.3 In the light of long experience in field surveys and the recommendations of the Committee of Experts on Unemployment Estimates set up by the Planning Commission in 1969 (Dantwala Committee). the National Sample Survey Organisation (N.S.S.O.) has develooed and standardised the concepts and definitions of labour force, employment and unemployment suitable to our socio-economic conditions and adopted them in quinquennial surveys on employment and unemployment since 1972-73 (27th Round). The various estimates are based on three concepts namely, Usual Status, Weekly Status and Daily Status. These are explained below:
13.4 Labour force is estimated on the basis of usual status participation rates. Estimates of participation rates for different aee groups for male and female and for rural and urban areas have been provided by the N.S.S. surveys on employment and unemployment during 1972-73 (27th Round) and 1977-78 (32nd Round). Assuming that the participation rates provided by the N.S.S. 32nd Round (1977-78)** would not have undergone any sisnificant change and applying them to the corresponding official population projections furnished by the Registrar General of India, the sex-residence labour force projections for March 1980 and 1985 are shown in Annexure 13.1. For the ase-"roups 5+, 15+ and 15-59, the all India labour force projections are a's follows:
* The period of reference in the NSS 27th Round was a lone pertod 'spanningove' thepast andfutwe^ the period was restricted to the preceding 365 days in the NSS 32nd Round (1977-78).
" * The NSS 32nd Round participation rates excluded certain marginal workers (persons cnpapcd in domestic duties and in udd'f'on engaged in free collection of fire-wood, vegetables, cattle-feed etc., and weaving, tailoy-ing etc.); This has -significantly brought down rural female participation rates as compared to to N.S.S. 27th Round All the results quoted from NSS 32nd Round are provisional.
Table 13.1 Labour force
According to the three concepts for different age-groups are as follows:
Table 13.2 Estimated Unemployment in March 1980
These projections show that the labour force would grow at an annual growth rate of 2.43 per cent to 2.55 per cent during the Sixth Plan.
13.5 In addition to the above estimates of labour force there is a sizable population which is economically active in the subsidiary occupations. Applying the relevant rates of the NSS 32nd Round to the corresponding population figures, the number of subsidiary workers in March 1980 is estimated at 24.09 million. This group is dominated by women who constituted nearly 87 per cent of it.
13.6 The quantitative growth in labour force has gone along with qualitative improvement. The two surveys N.S.S. 27th and 32nd Rounds have brought out that the literacy level of labour force has been growing at an average rate of about 1 per cent per annum between 1972-73 and 1977-78males from 46.3 per cent to 51.6 per cent and females from 10.7 per cent to 15.5 per cent.
13.7 Estimates of unemployment are available on the basis of the three concepts mentioned above (Usual Status, Weekly Status and Daily Status). Usual status unemployment refers to relatively long term unemployment i.e. chronic unemployment and is measured in numbers (of persons). This measure is more appropriate to those in search of regular employment (e.g. educated and skilled persons) who may not accept casual work. The weekly status and daily status unemployment estimates bring out the seasonal and pnrt time unemployment and under-employment effectively. These represent the average number of persons unemployed per week and per day respectively during the survey period. Daily status unemployment is considered to be the most inclusive and significant indicator of the magnitude of unemployment.
13.8 Assuming tint the rates of unemployment observed in the N.S.S. 32nd Round would not have changed, the estimates of unemployment in 1980 Some of the salient findings based on the NSS 32nd Round analysis of unemployment by age-group, educational level and household type are reviewed below.
13.9 Usual status unemployment estimates noted above take account of only the principal activity of the individuals; but some of them might have had subsidiary occupations. Applying the NSS 32nd Round rates, it would seem that out of the 12.02 million unemployed persons in March 1980, 4.19 million were having some gainful subsidiary work. Further, analysis by age-group showed that three-fourths of Usual Status unemployment was concentrated in the fresh entrants (age group 15-29) to the labour force. The unemployment rates were higher in urban areas and higher for women. (Details are given in Annexure 13.2 at the end of the Chapter).
13.10 Only weekly status estimates of unemployment are available by education levels and age-groups. Focussing attention on the young entrants (aged 15-29) to labour force, the following table illustrates their initial absorption problem analysed by general educational attainments:
Table 13.3 Distribution of youth labour force and Unemployment by education levels
This shows that the young educated category (Secondary and above) constituted 11.5 per cent of the total young labour force, but accounted for one-third of the total unemployment.
13.11 The Plan programmes like NRIEP, IRD, SFDA etc. are oriented to approach the beneficiaries through households. An assessment of the employment and unemployment situation by household type would also be helpful in according priorities to selected target groups. The NSS 32nd Round (1977-78) had analysed the daily status unemployment situation for a limited classification of household types (Annexure 13.3). A significant finding that emerges from the analysis is that the rural agricultural labour households covering about 21.2 per cent of the all India population acounted for 46.7 per cent of the total daily status unemployment. The unemployment rates were the highest in labour households. Self-employed households (whether in agricultural or non-agricultural occupations) had both the lowest rates and shares of unemployment. Apart from variation between households, there was also considerable variation in the incidence of unemployment between regions. The table in Annexure 13.4 presents the state-wise picture of unemnlovment rates and shares in labour force and unemployment all based on daily status concept.
Unemployment in 1972-73 and 1977-78
13.12 U'sual status unemployment rates between NSS 27th Round (1972-73) and 32nd Round (1977-78) are not strictly comparable because of the change in the reference period. Though the concepts and definitions of weekly status and daily status remained unchanged between the two Rounds, the change in coverage of labour force (i.e. exclusion of certain marginal workers in the 32nd Round who, were included in the 27th Round) has affected their comparability, particularly in the case of rural females category which has in turn affected thft aggregate (rural/female/ all-India) rates of unemployment. Assuming that the categories other than rural female are roughly comparable over the two Rounds for data based on daily status and weekly status, it is observed (Annexure 13.5) that there was a slight deterioration in the "nemployment situation between 1972-73 and 1977-78.
13.13 Employment data on a reliable and regular basis are available for relatively large establishments, which may be called 'organised sector' for this purpose. However, this covers only a small fraction of the total work-force. The employment in this sector in 1967-68 was 18.8 million and has been rising at the rate of about 0.8 million per vear (growth rate of 3.4 per cent) to reach 27.3 million in 1978-79 (Annexure 13.6) It is expected to have reached 28.3 million in March 1980.
13.14 The NSS 27th and 32nd Rounds have analysed the composition of workers by employment status (Annexure 13.7). Certain shifts in the pattern of employment between 1972-73 and 1977-78 are apparent from a comparison of the two sets of results*. Notably, the proportion of casual labour in agriculture has increased along with a reduction in self-employment in agriculture; the share of regular salaried/wage employment for urban males has come down while urban females have a reduced proportion in self-employment in non-agriculture; and both sexes in urban areas have increased shares as casual labour in non-agriculture. These shifts could indicate the changing pattern of land holding, pressure of population on land and employee-employer relationship in agriculture and outside agriculture. In the light of the finding that labour households suffer from higher rates of unemployment (Annexure 13.3), these shifts could themselves be a cause for the increase in overall unemployment rates.
13.15 The sectoral distribution of male and female workers in 1972-73 and 1977-78 based on the usual status data of NSS can be seen in Annexure 13.8. Data pertaining to female workers are not strictly comparable due to change in the coverage of certain marginal workers. The Annexure shows that the proportion of male workers in agriculture declined during this period while there was a marginal increase in trade and manufacturing.
Perspectives for the Sixth Plan
13.16 Projections of labour force in 1980 and 1985 (Para 13.4) and estimates of usual status unemployment in 1980 (Para 13.8) reveal the overall magnitude of employment to be generated during the Sixth Plan. These broad dimensions are indicated below:-.
Table 13 4 Backlog of Unemployment, 1980 and Net additions to labour Force 198085 (Usual Status basis)
* rural female category is not strictly comparable due to change in the coverage of certain marginal workers.
The backlog here takes note of only the long term unemployment; in addition, there would be seasonal unemployment and part-time under-employment prevalent largely in labour households. It is an objective of the Plan to expand educational facilities for children and as these facilities are made nse of, it would be appropriate to expect a decline in the backlog of children counted as unemployed as also in the net addition to labour force in the age-groups below 15 years.
13.17 At the present rate of growth, the organised sector can provide only four to five million regular additional jobs in the course of the Sixth Plan period. This would still leave large numbers for absorption in agriculture, small scale sector and other unorganised activities. While as a long term strategy we may rely upon the secondary and tertiary sectors for sustaining a greater labour absorption, appropriate short term measures are essential in order to mitigate distress resulting from conditions of unemployment and under-employment.
Educated manpower : Employment situation
13.18 The gravity of the unemployment situation as a whole has been brought out earlier. To find meaningful solution to this complex problem there has to be disaggregated examination of its different segments. It is hence necessary to examine the problems of educated unemployment separately. The educated manpower in this context refers to those persons who have obtained at least a matriculation or a higher secondary certificate. The unemployment rates in this category specially in the younger group (15-29) have been relatively high for sometime and an equilibrium between the growth of educated labour force and employment opportunities has not been reached. The former is related to the demand for education which remains high because the private cost of education is low and a higher level of education is generally associated with "better" employment, higher level of income and better status in society. Many who would like to start working after secondary school find that they are neither able to get jobs nor are fit for self-employment. Thus they continue with higher education not because of a strong academic urge but rather because there is not much else they can do.
13.19 Even though the educated manpower currently accounts for only 10 per cent of the total labour force (age group 1559), the problem of unemployment of this segment of the population looms large in any discussion on employment and unemployment because of the investment by the society of considerable sums of money in their education and training. Also, their problem is different from that of uneduca/ed manpower because of the need for proper utilisation and matching of jobs with qualifications and expectations in their case.
13.20 The unemployment problem is most acute among educated persons who are relatively young and belong to the age group 1529, probably because they are relatively inexperienced and have expectations of jobs with adequate security. The predominance of unemployment among 1529 age-group is borne out by the provisional usual status unemployment data thrown up by the 32nd Round of the National Sample Survey and presented in Annexure 13.2.
13.21 Though the educated youth (15-29) constituted 11.5 per cent of the corresponding labour force, they accounted for 33.2 per cent of the total unemployment23.8 per cent at the secondary level and 9.4 per cent at the level of graduates and above. About three-fourths (73.8 per cent) of the total educated unemployed youth were men. About 45 per cent were in_ rural areas.
13.22 An analysis of long-term unemployment for the entire labour force by education level would better illustrate the overall magnitude of the unemployment among educated. The preliminary results of the 32nd Round of the National Sample Survey (1977-78) indicate that the rate of usual status unemployment rose progressively from 2.28 per cent in the case of illiterates to 3.61 per cent at the primary level, 15.15 per cent at the secondary level and 15.76 per cent at the level of graduates and above. The Live Register statistics of Employment Exchanges also indicate that more than 50 per cent of the job-seekers are educated. All this perhaps indicates that there has been mis-match between job expectations generated by the education system and actual job opportunities provided by the developmental system.
13.23 The estimates of total stock of educated manpower denoted as matriculates and graduates and above (MGP) in 1980 and 1985 are presented in Annexure 13.9. The economically active population in each of the 16 educated categories has been estimated and the number of unemployed in each category computed. There is likely to be an increase in total stock of MGP from 34.76 million to 46.60 million between 1980 and 1985. Matriculates account for nearly 80 per cent of the stock. Of the total increase of 11.84 million MGPs over five years, new matriculates will be 9.21 million and new graduates 2.63 million.
13.24 All matriculates and graduates are not economically active. In particular, matriculates and graduates going for higher education or otherwise not actively seeking jobs (e.g. women in some classes/areas) are not counted as members of the labour force. It is estimated that the number of economically active matriculates and graduates and above will rise from 22.66 million to 30.37 million between 1980 and 1985. Thus, though the total MGP stock will rise by 11.84 million in the Plan period, there will be an increase of only 7.71 million in the active MGP.
13.25 According to the 32nd Round of the National Sample Survey, the unemployment rates for matriculates and for graduates and above were 15.15 and 15.76 ner cent respectively of the corresponding labour force. The 1980 estimates have been made on the assumption that there has not been anv significant change in unemployment rates since 1977-78. In the 7th Round of the National Sample Survey (1972-73) these rates were, however, lower. The unemployment rates vary from category to category. They aie low for engineering/medical/veterinary/commerce graduates as uiso for post-graduates bui are rather hign for engineering diploma holders and graduates in arts/ science/education. Though the rate of unemployment of matriculates is not high as compared to tnose of general arts/science/commerce graduates, they constitute over 71 per cent of the total MGP unemployment because of their preponderance in the total labour force.
13.26 The number of unemployed matriculates and graduates and above at the beginning of iy80 is estimated to be 3.47 million (Annexure 13.9). If there is no further deterioration in the unemployment rate ,this number is likely to go up to 4.66 million in 1985 due to the expansion of the educated labour force. This would imply the need for the creation of at least 6.52 million joos over the Plan period. On the other hand, the total of backlog of unemployment and increase in labour force amounts to 11.18 million.
13.27 We can also try to extrapolate the growth in recorded (organised sector) employment in me recent past shown in Annexure 13.6. The increase from year to year has been around 0.8 million. Even if it is assumed that the future increase in employment in the organised sector is wholly taken by the educated persons alone we tind that there is not enough room for the educated persons unless they are diverted either into self-employment or die absorptive capacity of the organised sector is increased substantially. The second alternative does not seem to be feasible leaving us the option of self-employment as the major mode of employment.
13.28 As has been noted above, the employment opportunities have not been adequate in the recent past either for the educated manpower or for the overall population. Even in terms of long term unemployment as indicated by the usual status estimates, the position has not been satisfactory. Therefore, the employment policy during the Sixth Plan has to meet the two major goals of reducing under-employment for the majority of labour force and cutting down on the long term unemployment. Though a lasting solution to these problems could be found only within the framework of a rapid and employment-oriented economic growth, suitable measures have also to be evolved in the short term in a co-ordinated way particularly for the benefit of the weaker sections.
13.29 In the context of a growing labour force (34 million over five years) and the mixed economy, the policy measures have necessarily to cover not only the direct employment generation in the public sector but also the entire gamut of economic activity in the public, co-operative and private sectors. Since the public sector employment accounts for only a small fraction of the total employment and since there is Qo likely hood of its rising appreciably, the policy measures must seek to influence the private demand and utilisation of manpower in all sectors of activity. Therefore, emphasis will have to be placed on self-employment ventures both in agriculture, village and small industries and allied activities and in non-farm occupations. Such measures to encourage employment generation are discussed in subsequent sections.
13.30 Special attention is being given towards providing adequate outlays in agriculture and related activities as also irrigation. Several steps are being initiated to increase greater utilisation of labour in agriculture, animal husbandry, forestry, plantation crops, etc. The pace of mechanisation in agriculture will have to be carefully regulated so as to ensure that labour absorption is not adversely affected. A massive irrigation programme with a high component of minor irrigation is being included in the Plan and efforts would be made to improve the availability of agricultural inputs specially for small farms. For this purpose, the Integrated Rural Development Project has been extended to all blocks of the country from October 2, 1980. Irrigation tends to increase labour absorption per hectare through multiple cropping and mixed farming and small farms utilise more labour than large farms. More allocations are being made for small scale and Khadi and Villge Industries since next to agriculture, this sector provides the largest number of jobs in the rural areas.
13.31 In the production of many goods and services, a given target can be reached by allocating production to the small scale or to medium/large scale units or to a mix of the two. In the Sixth Plan, it is proposed that wherever clear alternatives for production of goods or services are available, labour intensive technologies and processes must be preferred provided the productivity is not unduly affected. Also there is scope for ancillary units linked to large and medium units so as to secure for the small units advantages in quality control, marketing and standardisation. The employment impact of various programmes would be carefully considered and other things being equal, programmes/projects with higher employment potential would be given preference. An All-India Coordinated Research Project on technologies for landless labour families will be organised.
13.32 The Government is already committed to a policy of reservation and excise protection for the small scale, village and cottage industries where 834 items have been reserved for production exclusively in the small scale sector while 379 items have been reserved for exclusive purchases from small scale units. The list of items to be reserved and given excise protection is continuously under review. Two Committees have already made several recommendations for rationalising tax incentives to encourage labour intensive production. Effective measures will be adopted to enhance the productivity and competitive power of cottage, village and small scale industries so as to fully exploit their employment potential without loss of efficiency.
13.33 Some of the major plan programmes with significant employment potential (or otherwise benefiting tlie pool), details of which are given in tne relevant Chapters, are listed below. The estimates of benehcianes irom each listed programme are tentative and since the same person could derive benefit from more than one programme, the figures are not additive:
(i) The Integrated Rural Development Programme, now extended to all the blocks in the country, would benefit 30UU poor families in each block over the plan period by providing them work opportunities both in agricultural and non-agricultural occupations, Under this programme, the. rural poor would also be provided with assets in the form of improved breeds of cattle, equipment and agricultural inputs. The enforcement of land ceiling legislation as well as the allotment of ceiling surplus land to landless labour families will be completed. In this way, it is expected that 15 million families would be benefited during 1980-85 and brought over the poverty line.
(ii) The Operation Flood II Dairy Development Project envisages organisation of Dairy Federation and District Unions to ensure milk supply to the Metropolitan cities and towns with a population of more than one lakh. This project is expected to benefit about 8 million basically milk producing families during the Sixth Plan period. Other dairy development schemes would also benefit about 5 million additional families.
(iii) Fish Farmers' Development Agencies will provide assistance to fisherman families for adopting modem agriculture techniques. In addition to traditional fisherman families, other landless labour families will also be trained in fisheries culture, both in inland and coastal waters. Thriving coastal communities engaged in the culture of prawns, oysters, mussels, eels, etc., and in growing casuarina, cashewnut and coconut will be fostered.
(iv) In the Village and Small Industries Sector, there are numerous schemes to assist in the development of hhadi, village and small industries, including handloom, handicraft, sericulture etc. These are expected to benefit an additional 9 million persons during the Sixth Plan period.
(v) The National Rural Employment Programme (NREP) would cover all the blocks in the country and provide wage employment particularly during the slack agricultural season. This programme would generally cover those groups of persons who are not likely to be benefited by other sectoral plan programmes. It is expected that this programme would generate about 300 to 400 million mandays of employment per year during the Plan period.
(vi) Since the urban poor generally happen to be the unorganised labour who currently get employment only during a part of the year, it is envisaged that the various works for environmental sanitation, slum improvement, tree plantation, construction of houses for the economically handicapped people etc., would help to increase their income.
(vii) Various components of the Minimum Needs Programme including water supply, health, roads and electrification of rural areas and elementary education, house sites for landless labourers, etc., are likely to generate considerable employment in construction industry. Such expansion of infrastructure and social services particularly in the rural areas would also generate substantial additional employment of as indirect nature.
(viii) Under the National Scheme of Training Rural Youth for Self-employment (TRY-SEM), 2 lakh rural youth would be trained every year to equip them for self-employment and would be helped to set up their own ventures through the block agency. Both individual and group self-employment enterprises will be promoted in the agriculture, industry and services sectors.
(ix) State Governmenis of Maharashtra, Tamil Nadu, Madhya Pradesh and Karnataka are operating special employment schemes in the rural areas for the benefit of unskilled labour. Many State Governments are also implementing schemes for the benefit of educated unemployed by providing them training facilities, financial assistance and other incentives. These programmes will be further strengthened and expanded.
(x) Under the Plan programmes for Scheduled Castes and Scheduled Tribes, a wide variety of income earning occupations will be promoted.
13.34 It has been noticed from time to time that though there is a general surplus of unskilled/semi-skilled labour in the entire country, there are pockets where temporary shortages of such labour induce a tendency to mechanise operations such as in farming and construction projects. It is a fact that if greater outward mobility was feasible, many areas would be able to bring down their rate of unemployment. A Working Group which looked into various proposals for balancing the supply of and demand for unskilled and semi-skilled labour in terms of areas, occupations and time had made various recommendations towards better use of institutions like Land Army, Labour-Cum-DevelOpment Bank, Construction Corporations and Border Roads Organisations. These recommendations would be considered and ways and means of promoting mobility of labour so as to utilise potential for employment available in areas of labour scarcity would be explored.
13.35 Though the sectoral plan programmes would take care of work opportunities for both men and women it is necessary to pay special attention to women''s employment. An awareness would therefore be created among the planners and development administrators about the employment of women in greater numbers without any bias relating to type of occupation. Modernisation of traditional occupations of women would be selective and would include simultaneous development of skills for alternative employment for them.
13.36 All agencies which are responsible for generating employment opportunities for women or training them for self-employment-or wage-paid emip'oyment will need to monitor the share of women in the benefits provided particularly in respect of stipends, hostel facilities etc. At the district level, a suitably qualified person in the District Manpower Planning and Employment Generation Council will assess womens' needs for vocational training. Wherever Women Development Corporations have been set up their services will be utilised for promoting the employment of women.
13.37 As indicated elsewhere, employment in standard person-year terms in the entire economy is expected to go up from about 151 million to 185 million or an increase of about 34 million by the end of the Sixth Plan. These estimates of employment in standard person-year terms have been generally based on output levels achieved in 1979-80 and expected output levels in 1984-85 which have been related 1.0 labour absorption through labour co-efficients in particular sectors based on past data and experience. Though the increase in employment in standard person-years is about 34 million, the actual number of beneficiaries is expected to be much more since not every member of the labour force may be full-time worker during the entire year. The following table gives the employment generation and the rates of growth in live major sectors of the economy during tlis Sixth Plan period.
Table 13.5 Projected Growth of Employment 197980/1984
Note : An earlier exercise for the 197883 Plan Period had estimated higher employment generation figures for 1977 -?3 .inc! 19K 83. This was mainly due to the assumption of unit employment/output elasticity between the year ol ili^ i.-iui b:sc ;.inl the plan years. The present estimates take note of lower elasticities observed in many sectors. The utilis.itioB uf niuie recent data for different sectors as also the poor performance of the economy in 197980 contributed to the lower estimates of employment indicated here.
EDUCATED MANPOWERPOLICY FOR
13.38 The problem of unemployment among the educated should be viewed as a part of the totai prot>-iem of unemployment and under-employment and the policy measures initiated should not result in merely reducing the unemployment cf high level educated manpower at the cost of those who are less educated. Furmer, as the dimension and gravity of educated unemployment vary from State to State, a decentralised approach would be adopted based on the district employment plan described later.
13.39 Since it is not possible to have separate employment programmes exclusively for the educated manpower, iniose programmes which are likely to generate substantial employment opportunities for the educated have been analysed here. In particular, various programmes in toe primary sector are found to have considerable potential for the educated. These include not only rural development but also agriculture, animal husbandry, fisheries and agro-forestry. Expansion of the extension system is one such important programme. It is estimated that when this programme covers all the States, about 25,000 additional village level workers will be required. Over and above this. another 32,000 will be employed in agricultural research. The Central schemes of agricultural census and farm management studies would provide additional employment to about 34,000 persons. The Operation Flood U has an employment potential of 167,000 persons by 1984-85 to be engaged in infrastructural support, technical input supply and milk processing operations. Most of these personnel are likely to be educated. Similarly, the inland fishery project would provide opportunities for 2,40,000 persons, many of whom are likely to be educated. Block level planning will also generate employment opportunities for the educated in work relating to survey, planning, monitoring etc.
13.40 The expansion of rural infrastructure and social services under the minimum needs programmes will also absorb a sizeable number of educated persons on a part-time or full-time basis. Jn particular, there would be greater scope for employment of various kinds of para-professionals specially para-medical staff to ensure the extension of services m rural/backward areas. Most of these opportunities would be of wage paid type.
13.41 Work opportunities for the educated people are, however, not confined to the above mentioned schemes with largely wage paid/regular employment. For example, even within agriculture and allied activities a large number of matriculates and degree holders would be utilised in the farming operations, dairies, fisheries and other projects. The number of such self-employed secondary passed persons was substantial in 1977-78 and would surely pick up during the Sixth Plan. Processing, marketing and trade operations will need increasingly growing numbers of educated persons. The commercial banks under their schemes cf providing credit to at least two additional persons per branch every month are likely to cover almost 39 lakh perons by 1984-85. The District Industries Centres aad toe various Public Sector Corporations would also be involved in assisting the educated people to set up self-employment ventures. The educauon and training systems would promote self-employment and the Inaustrial Training institutes (ITIs) would be revamped to involve them in training for self-employment and making their existing training programmes production oriented. This would include preparation of the project profiles, market research and tying up of credit needs etc.
13.42 However, it seems clear that even if these programmes generate employment as per expectations, unemployment would not be eliminated within the Sixth Plan unless ettoris are immediately made to make the current unemployed more employable through short-term training/vocational programmes and special employment programmes are directed towards their absorption, hfforts would be made, in particular, to divert matriculates, who form the bulk of the educated unemployed, to non-clerical occupations and seif-employment. Concurrently steps will be taken to link education, employment and development in a virtually supportive manner.
A NEW DEAL FOR THE SELF-EMPLOYED
13.43 The bulk of the labour force is in the unorganised sector with a preponderance of self-employment since the aosorptive capacity of the organised sector is extremely low. In fact, the trends in recent years indicate that only about 12 per cent of the increase in the labour force is absorbed in the organised sector. The remaining members of the labour force will have to seek employmsnt in agriculture and allied sector and in non-farm activities, characterised by a high degree of under-employment and self-employment.
13.44 The provisional results of the 32nd Round of the NSS indicate that the majority of the work force (58.1 per cent) were self-employed, mostly in agricultural activities. Only 15.8 ys cent of the workers were engaged in regular wage paid employment and 25.9 per cent were casual labour. The details of the work force in rural and urban, areas by employment status are given in Annexure 13.7. Annexure 13.10 gives industry-wise distribution of the educated sclf-smpioyed workers.
13.45 Since only a small proportion of the increase in labour force will be taken care of by the organised sector, it will be necessary to make a determined effort to promote self-employment for ensuring a progressive reduction in the incidence of ooverty and unemployment.
13.46 The main areas in which public institutions can provide assistance for self-employment are training, credit, marketing and general guidance about the various facilities available to the people for starting their own ventures for organising relevant services.
13.47 To make seif^mployaient a success, not only should requisite training be organised on a massive scate bntnecessary facilities for nmnjag a self-employment unit should also bs provided. Such facilities will have to be particularly provided to matriculates, who form the bulk of the educated unemployed. The existing m training which is mostly oriented for the service sector win be revamped to make it self-employment and production oriented. The areas having potential for self-employment for in trainees will be identified, orientation courses organised, project profiles prepaied and credit needs tied up. The training programmes in His and other institutions will be enlarged to include project formulation as an essential part of the curriculum along with management, accounting and marketing.
13.48 The National Scheme of Training Rural Yontfa for Self-employment (TRYSEM) will provide short training courses to the rural youth and give them incentives to set up their own ventures. Other training facilities available through different Boards like the Handicraft Board, Dairy Development Board etc. would be expanded. Post-training de-up would also be provided through a package of assistance for promoting self-employment. Linkages will be. maintained between the trainees and training institutions until the trainees become self-reliant.
13.49 The existing margin money scheme does not cover self-employment ventures set up in sectors other than village and small scale industries. A new scheme on the model of the existing margin money scheme will need to be taken up to encourage self-employment in sectors such as agriculture and allied activities, trade, transport and other ventures. Commercial Banks have already set the goal of providing credit to at least two additional persons per branch every month, the benefit of which will largely accrue to the educated unemployed. Special facilities will be provided to the home based units to obtain suitable machinery and hand tools, etc. on easy terms. In this endeavour fnu use wffl be made of the existing organisations like State Agro-industries Corporation, Leather Development Corporation, Handloom Development Corporation, Handicrafts Board, Forest Development Corporation, etc.
13.50 A large number of cottage and village industries rely on middle men or otherwise face problems of marketing. Steps will be taken for the setting up -rf suitable producer-oriented marketing organisations and strengthening the existing ones. These organisations will be responsible not only for marketing tile products of small scale units but also for carrying out market inteRigeace and other surveys, quality control, standardisation of products and active salen- promotion. Arrangements would also be made for fte timely supply of essential raw material to the self-employed persons including petty traders and vendors. Training facilities in designs based on consumer preference and marketing management would also be provided.
13.51 Many unemployed persons are not aware of the various facilities available for starting their own ventures. It is, therefore, necessary to give wide publicity to the facilities that are being provided by Government, as well as by public, cooperative and private sector enterprises in the matter of training, credit and marketing facilities. For this purpose University Employment Bureaus and Employment Exchanges would be strengthenend to make them also centres for dissemination of information on and registration for self-employment and for providing such registrants guidance in various ventures. It would be ensured that the information on and application forms for various facilities admissible for self-employment are available at one place. The help of mass media will be enlisted in this task.
13.52 A large number of urban self-employed consist of petty vendors, traders, hawkers, repairers and homeased producers. The following steps will be taken to assist such persons:
DECENTRALISBD STRATEGY FOR MANPOWER PLANNING AND EMPLOYMENT GENERATION
13.53 Human resource development achieves its full expression through the provision of opportunities for gainful employment to all citizens. Poverty persists under conditions where the human resources are undervalued and material resources are over-valued. The primary objective of planned development should, therefore, be the provision of work opportunities to all. Education, employment and development should become catalysts of each other and should lead ^ to the improvement of quality of life both in rural and urban areas. Manpower planning and employment generation programmes would, therefore, receive more detailed attention during the Sixth 'PTan period. All the three major components of the human resource development strategy, viz., effective implementation of the minimum needs programme, employment generation and the voluntary adoption of the small family norm will be suitably integrated in the household approach to the alleviation of poverty and destitution.
13.54 So far, the problems of unemployment and under-employment have been analysed by and large at a macro-level, such as several special programmes for employment. However, these have neither made the necessary dent on the problem nor have been relevant in operational details to specific socio-economic and socle-cultural conditions. It is, therefore, necessary that a disaggregated approach is introduced to find i-ieaningful solutions to this complex and challenging problem. For this purpose it is 'proposed to organise during the Sixth Plan period in all the districts of the country a District Manpower Planning and Employment Generation Council with appropriate professional staff support. While the precise composition of the Council could vary from State to State or even within a State, the following four groups should find representation on such a Council:
13.55 The District Manpower Planning and Employment Generation Council will have to be assisted by the District Employment Exchange, District Industries Centre, District Agricultural Office, lead bank and those connected with the organisation of services in preparing a portfolio of opportunities for salaried, self and wage employment during the Plan period,
13.56 While it will be_^asy to assess the number of salaried positio'ris that may become available both in the public and private sectors, and while estimates of the potential for wage employment under the various Plan projects as well as under NREP can be made, the difficulty will lie in assessing the opportunities for gainful self-employment. This is where the maximum technical and professional input from Universities, research institutes, and credit institutions will be necessary. "Based on an analysis of the manpower needing jobs and opportunities available for salaried, wage and self-employment, a suitable strategy will be designed tor launching a minimum of "one job per family" programme. The District Manpower planning and Employment Generation Council should also stimulate the organisation of relevant skill upgradation and training programmes, particularly in areas where there are critical gaps in available competence. This will enable empldymeht generation to be based on the scientific utilisation of local resources. This exercise will be particularly important in tribal, hill aim other economically backward areas.
13.57 The Council should also prepare a manpower budget for the district. This will entail working out the employment implications of Government schemes and programmes, thereby Instilling employment consciousness in district level functionaries who will come to assess Government programmes m terms of their employment benefits, among other things and the contribution they will make to bridging the unemployment gap. An excellent indicator of progress on the employment front is the movement of real wages over time. If the labour market tightens, one would expect wages to go up. The Council might, therefore, keep a watch on wages, especially agricultural wages. By doing so it will draw attention to the fact that the concept of full employment has several dimensions. Not only must it promote a full utilisation of surplus and idle labour time, but it should also ensure that the productivity and earnings of time devoted to labour are maximised.
13.58 Employment Exchanges in the country can become nodal agencies for providing the necessary data input in the work of the District Manpower Planning and Employment Generation Council. There are at present 632 Employment Exchanges including University Employment Information and Guida'nce Bureaux, Project Employment Exchanges, Colliery Employment Exchanges. Special Employment Exchanges for Handicapped, Professional and Executive Offices and Plantation Exchanges. The three broad functions of the Employment Exchanges, have so far been: (i) registration and placement ofyh seekers, (ii) rendering vocational guidance and career advice services; and (in) collection and dissemination of manpower data. While the placement activity of the Employment Exchanges has been their important function, it has not been possible to provide _all the persons registered with suitable jobs. Since it is clear that the only immediately feasible method of providinp, at least one job per family is through an integrated attention to salaried, self and wage-employment, it is necessary to re-structure the Employment Exchanges in such a way that they can render a more effective service in assisting those seeking opportunities for self-employment.
13.59 For this purpose, the Vocational Guidance Officers in the Employment Exchanges will be equipped to assist young men and women to enter suitable self-employment professions. Those registering at the Employment Exchanges will be requested to fill two different forms: (i) the existing form for suitable jobs, and (ii) a new form which wiu seek information on the area of self-employment of interest to the candidate. The filling of the self-employment form will be voluntary and the choice of the field will also be according to the aptitude and prefei^nce of the candidate filling the form. All the forms relating to self-employment will then be analysed and classified according to (a) land and water based occupations (.i.e., agriculture, horticulture, animal husbandry, fisheries and forestry), (b) small and village industries including agro-processing and other areas of post-harvest operations, such as packaging, forwarding and marketing, sericulture, apiculture etc. and (c) organisation of relevant services such as farmers agro-service centres, repair and maintenance of farm equipment, marketing etc. On the basis of an analysis of the preferences of candidates and of possiblities in the district, suitable arrangements will be made to provide the necessary training and to secure the needed credit and other facilities which will help the youth to launch on a career of self-employment. The District Manpower Planning and Employment Generation Council should identify the avenues of self-employment which are sound from the point of view of their cost, return and risk structure. Where a group of young men and women have indicated preference for the same field of self-employment, such as poultry or fish farming, sericulture, etc., efforts should be made to promote group self-employment. If a group of boys and girls are willing to join together to run a group enterprise training should be imparted to each member of the group in a specific area of the enterprise. For example, one or two persons can be trained in the productior aspects, while others could be trained in the sales and marketing aspects of the enterprise. Thus each member of the group will bring in complementary skills and know-how so that the team as a whole has a balance in terms of its production capability and marketing skill. Unfortunately, so far no systematic attempts have been made to promote in a scientific manner group self-employment. Even where attempts have 'been made, they have by and large, tended to relate to individual self-employment. The greatest opportunity for viable self-employment lies in groups of youth running together suitable commercial or service enterprises with a high management efficiency. The opportunities for providing relevant .iervice<- to small and marginal farmers as well as rural artisans are great.
13.60 The role of the Employment Exchange in the field of self-employment will be: (a) coyecting th-relevant data, and (b) providing stair support to the District Manpower Planning and Employment Generation Council. All University Employment Guidance Bureaux will also be strengthened so that they can assist not only the students of the respective university in getting suitable placement but also all the youth in the area where the educational institution is located.
13.61 A National Level Guidance Committee for organising this work on a systematic basis will be set up. Sirr.ilarly the State Planning Boards could set u'p State Level Committees so that all the families in the State are assisted to have a reasonable income through the available opportunities for salaried, self and wage-employment. Based on the experience gained during the Sixth plan, the manpower planning and employment generation work can be organised during the next Plan. This will help to link strategies for employment generation and resource utilisation at the local level in a more meaningful manner. Such a decentralised approach will also help to provide specific attention to special problems sucfi as women's employment and alternative job opportunities for those displaced from traditional work due to modernisation (e.g., civic sanitation work, hand-driven rikshaws, etc.). The District Manapower Planning and Employment Generation Council should develop the capacity to get 'employment impact' statements prepared with regard to every major development and modernisation project, both in public and private sectors, so that development ca i be channeled in directions which can help all citizens to earn their daily bread.
13.62 Finally, linkages between the District Manpower Planning and Employment Generation Councils with the local educational and training institutions should help in bringing about a proper match between admission policies and course-curriculum organisation on the one hand and employment opportunities and skill requirements, on the other.
Annexure 13.1 Labour Force in 1980 and 1985
Note : Labour force projections in 1980 and 1985 are obtained by applying the N.S.S. 32nd Round age-groupwise sex-residence Usual (Principal) Status participation rates to the corresponding official population projections for March 1980 and 1985.
Annexure 13.2 Usual status unemployment rates by residence, sex and age-gronp during 1977-78
Note : The rates are based on the N.S.S. 32nd Round Survey (1977-78). These are the percentages of unemployed (Principal Status) to the corresponding labour force.
13.3 Analysis of daily status unemployment situation by household
Note: The figures relate to all ages 5 and above.
13.4 Daily status unemployment rates by States 1977-78 based
Note: (1) The data
relate to all ages five and above.
13.5 Daily status and weekly status unemployment rates during:
Note : The figures relate to all ages 5 and above.
Annexure 13.6 Recorded employment by Industry Divisions (as at the end of financial year)
13.7 Distribution of Workers by Employment status 1977-78
: The figures relate to age group (15-59). Corresponding NSS 27th Round
(1972-73) results are shown in brackets;'
Annexure 13.8 Industrial distribution of work force (Usual Status) during 1972-73 and 1977-78
source: N.S.S. 27th and 32nd Rounds.
13.9 Estimates of stock of Manpower, My active and unemployment
at the beginning of the years
note :Figures in parantheses in columns 4 & 8 indicate percentages to total. Includes post-graduates.
13.10 Industrial distribution of educated (secondary
and above) self-employed workers based
Note : Figures in parantheses in columns 6 and 11 are absolute numbers in hundreds based on provisional population data used by NSSO.; Self-employed includes helpers in household enterprises.
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