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Economic Survey 2020: GST, digitisation led to rise in formal jobs

Data showed that proportion of workers in organized sector increased from 17.3 percent in 2011- 12 to 19.2 percent in 2017-18.

January 31, 2020 / 04:22 PM IST
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Representative Image

The Economic Survey 2020 has said that the introduction of Goods and Services Tax (GST), digitisation of payments and social security schemes have led to the creation of more formal jobs.

Data showed that the proportion of workers in organized sector increased from 17.3 percent in 2011- 12 to 19.2 percent in 2017-18.

In actual terms, the number of workers in the organized sector increased to about 9.05 crore workers in 2017-18, an increase of 0.87 crore over 2011-12.


“This was mainly due to the increase in formal employment, the share of which in organized sector increased from 45 percent in 2011-12 to 49 percent in 2017- 18,” said the survey.


It said that the total formal employment had increased from 8 percent to 9.98 percent during this period. In absolute terms, the number of workers with formal employment increased from 3.8 crore in 2011-12 to 4.7 crore in 2017-18.

Among the self-employed category (consisting of employers, own account workers and unpaid family labour), the proportion of own account workers and employers increased. However, the proportion of unpaid family labour (helper) has declined, especially for females between 2011-12 and 2017-18.

“Various steps are being taken for generating employment in the country like encouraging private sector of economy, fast-tracking various projects involving substantial investment and increasing public expenditure on schemes such as Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme, Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM). As a result of these policy interventions, the nature of employment has changed significantly,” said the survey.

The report also showed that the distribution of workers in casual labour category had decreased from 30 percent in 2011-12 to 25 percent in 2017-18 with the decline being in rural areas.

According to the survey, the Annual Survey of Industries (ASI) showed there has been an increase in employment in the organized manufacturing sector. Between 2014-15 and 2017-18. Here, the total number of workers engaged in the sector increased by 14.69 lakh while total persons engaged (inclusive of employees and employers) increased by 17.33 lakh.

On one hand, there is a rise in formal jobs. Nevertheless, there is a drop in labour force participation of women, the survey pointed out.

Data showed that female labour force participation had declined from 33.1 percent in 2011-12 to 25.3 percent in 2017-18.

“Though female LFPR is higher in rural areas as compared to urban areas, the rate of decline was also sharper in rural areas compared to urban areas. As a result of this, gender disparity in India’s labour market has increased which is reflected from declining trend in ratio of female to male labour force participation rate except for urban females,” it said.

The Economic Survey 2020 showed that women with middle level and secondary level education had been engaged in domestic duties compared to highly educated women for all age sub-groups. For the productive age group (15-59 years), only 5.3 percent of highly educated women are engaged in full time domestic duties while remaining 54.6 percent of women attending domestic duties are up to secondary level educated.

It is lack of attainment of appropriate education level and skill sets that are confining women to domestic duties, said the survey.
Moneycontrol News
first published: Jan 31, 2020 04:22 pm
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