Organised sector jobs rise a tad over 4% a year in over 7 years till Q1FY22

The new revamped quarterly employment survey (QES) for organised sector showed that employment rose by a little over four per cent a year on an average in nine sectors during seven years till the first quarter of the current financial year.

The estimated total employment in the nine sectors–manufacturing, construction, trade, transport, education, health, accomodation and restaurant, IT/BPO and financial services–stood at 30.8 million during April-June, 2021 against a total of 23.7 in these areas reported in the sixth economic census. The census covered the period of January, 2013 to April, 2014.

This implies a growth rate of 29 per cent over a period of around seven years.

Meanwhile, the survey also showed that the Covid-induced employment decline was evident in 27 per cent of the establishments during the first wave that hit the country from March, 25 to June 30, 2020. The silver lining is that 81 per cent of the workers received full wages during the lock-down period.

However, a total of 16 per cent received reduced wages and around three per cent was denied any wages.

In the construction sector, 27 per cent had to accept reduced wages and seven per cent were left with none. In the health and financial services, more than 90 per cent workers received full wages.

The new QES was launched on Monday by labour minister Bhupender Yadav after the earlier QES was suspended three years ago in 2018. The new QES has one more added sector in it–financial services–compared to the previous one.

Released the first report of Quarterly Establishment based Employment Survey. Prime Minister Shri @NarendraModi ji’s emphasis on evidence-based policy making and statistics-based execution will get a boost with more frequent Establishment based Employment Surveys.

— Bhupender Yadav (@byadavbjp) September 27, 2021

Key highlights of the first round of Quarterly Employment Survey:

• The most impressive growth of 152 per cent has been recorded in the IT/BPO sector, while growth rates in health is 77 per cent, in education it is 39 per cent, in manufacturing it is 22 per cent, in transport it is 68 per cent and in construction it is 42 per cent . However, employment in trade came down by 25 per cent and in accommodation and restaurant the decline was by 13 per cent. Financial services saw a growth rate in employment of 48 per cent.

• Nearly 90 per cent of the establishments have been estimated to work with less than 100 workers. Nearly 35 per cent of the IT/ BPO establishments worked with at least 100 workers, including about 13.8 per cent engaging 500 workers or more. In the health sector, 18 per cent of the establishments had 100 or more workers.

• The over-all participation of female workers stood at 29 per cent.

• Regular workers constitute 88 per cent of the estimated workforce in the nine selected sectors, with only 2 per cent being casual workers. However, 18 per cent of workers in the construction sector are contractual employees and 13 per cent are casual workers.

• Only 9 per cent of the establishments (with at least 10 workers) were not registered with any authority or under any act. While 26 per cent of all the establishments were registered under the Companies Act with 71 per cent registration in IT/ BPO, 58 per cent registration in construction, 46 per cent in manufacturing, 42 per cent in transport, 35 per cent in trade and 28 per cent in financial services.

• Around 18 percent of the establishments have provision of on-job skill training programmes.

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