Effect of Economic Slowdown on Employment in India

The Ministry of Labour has been continuously watching the effect on employment situation due to global financial crisis and economic slowdown in India since September 2008. The current survey to assess the impact of economic slowdown on employment in India, is the Eleventh in the series of “Quarterly Quick Employment Surveys in Affected Sectors” covering the period April to June 2011 conducted by Labour Bureau.

                In the eleventh quick employment survey, the sample establishments covered in the pervious survey have been revisited to assess the changes in employment. During the survey, the information has been collected from 2,289 units / establishments by covering 21 centres spread across eleven States/UT.

                The results about effect on employment in the eight selected sectors i.e. Textiles including Apparels, Leather, Metals, Automobiles, Gems &Jewellery, Transport, IT/BPO and Handloom/Powerloom are briefly summarized as below:-

  It may be observed from the enclosed statement that the upward trend in employment has been continuously observed since July 2009. During the quarter April to June 2011, the employment has increased in respect of all sectors except Textiles including Apparels and Transport and the overall employment has increased by 2.15 lakh during the quarter.

  At the sectoral level, the maximum increase of 1.64 lakh in employment during the period June, 2011 over March, 2011 is in IT/BPO sector, followed by increase of 0.53 lakh in Metals, 0.18 lakh in Automobiles, 0.13 lakh in Gems &Jewellery, 0.01 lakh in Leather and 0.01 lakh in Handloom/Powerloom sector.

                              

  The maximum increase in overall employment by 1.90 lakh is seen in the Direct category of workers as compared to 0.25 lakh in the contract category of workers at overall level during the period June, 2011 over March, 2011.

  In the export oriented units, the employment at the overall level has increased by 0.67 lakh whereas in the non-exporting units, it has increased by 1.48 lakh during the period June, 2011 over March, 2011.

 While comparing the results of the last four quarterly surveys conducted during 2010-11 i.e. June 2011 over June 2010, the overall employment has increased by 10.31 lakh, with highest increase in IT/BPO (7.00 lakh) followed by 1.31 lakh in Textiles including Apparels, 0.96 lakh in Metals, 0.78 lakh in Automobiles, 0.16 lakh in Transport and 0.13 lakh in Leather during the period.