Labour force

Dr. K. Murugan
Assistant Professor
Department of Economics
Guru Nanak College
Chennai-42.

1. Classification of Occupational Labour Force by Dr. K. Murugan Assistant Professor Department of Economics Guru Nanak College Chennai-42.

2. Occupational Pattern in India Labour force is defined as those able-bodied workers in the age group of 15 to 59. The proportion of working population to total population is called work participation rate. In Underdeveloped Countries (UDC’s) the work participation rate of labour force is low. According to 1981 census, the work participation rate in India was 36.7 percent. In 1991, it increases to 37.7 percent..

3. According to 2001 census, the work participation rate increased to 39.2 percent. It means out of our total population of 102.7 crore , about 40 crore people constitute the work force. In 1991, out of total population of 84.6 crore , about 32 crore people constituted the labour force. From 1901 to 1970, there was no change in the occupational pattern especially in primary sector agriculture and allied activities. In 1901, 71.7 percent of the labour force was engaged in primary sector.

4. In 1971, almost the same proportion (72.2%) of the labour force was in agriculture only in 1981 there has been small decrease in the proportion of work force engaged in agriculture. In 1991, 66.8 percent of the labour force was employed in agriculture. A recent estimate shows that 56.7 percent of our labour forces are employed in agriculture. This slow decrease in the proportion of work force employed in agriculture in the reference of increasing population growth shows large disguised unemployment in Indian agriculture.

5. In secondary and tertiary sector. 27.9 percent of the labour force was employed in secondary and tertiary sector till 1971. In 1951, 10.7 percent was engaged in industrial sector which slightly increased to 12.7 percent in 1991. NSS estimate shows that in 1999-2000, 17.5% was engaged in secondary sector. In second plan huge investment was made to industrialise economy. This had put a small effect on the occupation structure of the country .

6. While analysing the rate of labour employment in tertiary sector, it is found that 17.2 percent was engaged in this sector in 1951. During the period of 1st six plans the situation remained unchanged. In 1981, 17.7% was employed in tertiary sector. Only in 1991, this ratio has gone up to 20.5 percent and in 1999-2000, it increased to 25.8 percent. After the satisfaction of basic needs like food, clothing and shelter which directly come from agriculture and industry, people demand various kinds of services like health education, travel, transport, banking and insurance etc.

7. With the development of a large middle class in India, the share of service sector to GDP and ratio of work force engaged in tertiary sector are supposed to increase. There is no visible shift in the labour force from the primary to the secondary and tertiary sectors in India during twentieth century. The economic development is associated by a shift of the working population from the primary to the secondary and then to the tertiary sector.

8. Labour Market in India Structure of the Labor Market in India is made up of multiple layers. According to Government laws, classification of the labor sector is done on the basis of skill and area of operation are given below. Unskilled Semi-skilled Skilled Highly skilled Managerial personnel

9. Classification of Labour Force in India Labour force in India can be divided into organized and unorganized sectors. Unorganized Sector The Government of India is very keen on reforms in Indian labor sector by providing legal and social protection to the unorganized and informal sector workers. However the major problem is no one is absolutely clear about the informal workforce in India.

10. According to Economic Survey (2018-19) 93 percent of the total workforce is informal sector. NITI Aayog report (2018), 85 percent of the workforce in India is employed in the informal sector. National Statistical Commission (2012) report of the Committee on Unorganised Sector Statistics, the informal workforce is more than 90 percent of the total workforce. Organized Sector: This sector workers are employed in Government organizations, state owned enterprises, private sector companies. 

11. Occupation: It includes fishermen, landless agricultural labourers , small & marginal farmers, construction workers, beedi rolling, weavers, workers, packing & labeling, workers in animal husbandry etc, Nature of Employment: Migrant workers, Casual labourers , Contract labourers , Bonded and agricultural labourers . Specially Distressed Categories: Scavengers, toddy tappers, loaders, unloaders etc. Service Categories: Domestic workers, vegetable vendors, fruits vendors, pavement vendors, newspaper vendors, hand cart operators.

12. Occupational Distribution A sharp decline in cultivators Total workforce is still tilted towards agricultural activities, more than half of the workforce is concentrated in agriculture. 8.9 million farmers, during 2001 and 2011, moved away from self-cultivation in the total work force. The decline in main workers who involved in cultivation/ farming had begun since 1991. Around 7.5 million farmers of main workers category during 1991-2001 and another 7.4 million during 2001-11, together

13. 14.9 million farmers of main workers category are moved away from farming during the last two decades. There was a decline in main workers involved in self-cultivation during 1991-2001, 10.4 million workers newly entered into farming as marginal workers. 2.9 million workers into farming activity during 1991-2001. Later, during 2001-11, along with farmers in the main workers category (7.4 million) farmers of marginal workers category (1.5 million) also moved away from farming activity. Thus, there is a total decline of 8.9 million farmers during 2001-11.

14. Farmers becoming agricultural labourers The farmers moving away from self-cultivation to agriculture labour. There is more than compensating size increase (to decline in farmers) in the category of agricultural labourers . It is about 36.9 million net additions to the size of agriculture labourers during 2001-11. When compared that the decline in workforce engaged in self-cultivation at 7.4 million, is very small. Most of those farmers who are moving away from farming are becoming agricultural labourers .

15. In agricultural labour, the main workers when male and female workers are combined, its size had in fact declined during 1991-2001. But thereafter it increased between 2001 and 2011. In marginal worker the number of workers (male and female combined) engaged in agriculture labour has increased since 1991. The rate of growth in agriculture labourers is significantly higher among the marginal workers category of males than the rate observed for male main workers category during 2001-11.

16. Labour force absorption in non-agriculture – increasing During 2001-11, 79 million is the net addition to the total workforce. Of the total net addition one–third of it is absorbed in the agriculture and the rest in the non-agriculture. There is increasing labour force is getting absorbed in non-agriculture. Relatively higher growth of workforce engaged in non-agriculture when compared with the agriculture.

17. The rate of growth in the total workforce engaged in non-agricultural activities is distinctively high and different from that of agriculture, particularly during 1991-2001. Nevertheless, this high growth rate in non agriculture has decelerated, during the recent decade (2001-11), to around half-of the rate that recorded in the previous decade (1991-2001). As a result the considerable change in the structure of workforce towards non-agriculture observed in 1990s is reduced in 2000s. This is in contrast to the growth of GDP in India in its non-agriculture sector that had registered its highest ever during 2001-11.

18. Growing Female workforce in Non-agriculture Growth among the female workers engaged in non agriculture is found to be higher than their male counterparts. The pattern of workforce engaged in nonagriculture sector, most of it is moving towards unorganized and informal sectors particularly the labour-intensive businesses. The availability of female labour at cheaper wage rates might be the inducing factor for the preference of women workers over men. It may raise the concern over the quality of the females’ employment in non-agriculture.

19. As a result the share of marginal workers in the total female workforce engaged in non-agriculture is increasing over time. In 2011, one-third of the total female workforce engaged in non-agriculture is in the category of marginal workers. Increasing Marginal category in the Non-agricultural Workforce The share of marginal workers in the total workforce engaged in the non-agriculture is increasing since 1990s. There is increase in the share of marginal workers is even observed for total male workers engaged agriculture. Among the non-agriculture workers, increasing share of marginal is observed for both the male and females.

20. Diminishing rate of Absorption of Labourforce in HHI It is an important source of livelihood for a considerable large proportion of workforce. Around 6% of female workforce and 3% of male workforce, together 4% of total workforce in India, in 2011, is engaged in household industry. Growth of workforce in household industry is fast decelerating during the last decade (2001-11). It has registered a rate of growth 1.1% per annum during 2001-11 In fact, there was a decline in the workforce engaged in household industry during 1981-91. Thereafter, during 1991- 2001, workforce in the HHI registered a significantly higher growth.

21. Gender Distributions There is recent changes in growth and changing structure of workforce in India. Females share a half of the total population, only one-quarter of the main status workers are female but little more than half of the marginal status workers are females. Female’s share in the population has shown a marginal increase since 1991 continued the increase till 2011. Females’ representation in the main workers has increased during 2001-11, but their representation has declined among the marginal workers.

22. Their share in the in the total workforce increased between 1981 and 2001 and thereafter it has shown a marginal decline. But their share in main workers increased throughout during the last three decades - between 1981 and 2011. The decline in their share in total workforce is entirely to due to decline of their share in the marginal workers which has shown a fast decline since 1991.

23. In the traditional occupations such as agriculture (incl. self-cultivation and labour) and household industry, female’s representation is declining. Among the three occupations: cultivators, agricultural labourers and HHI, the female’s share had increased between 1981 and 2001 thereafter it declined between 2001 and 2011. In the in modern occupation their representation is getting increased. In the workforce engaged in ‘others’ occupation, which include non-household industry