Skip to main content

Labour Ministry looks to add self-employed to job data

Labour Ministry looks to add self-employed to job data
Employment numbers could increase significantly if a labour ministry proposal to include self-employed people under the Pradhan Mantri Mudra Yojana (PMMY) in the data is implemented. That would give the government's job-creation credentials a boost ahead of the 2019 general election.
This proposal comes as a spat has been brewing over a recent report that said 5.5 million people will be added to the Employees' Provident Fund Organisation (EPFO) network in the current fiscal, reflecting employment growth. Critics have said EPFO enrollment doesn't necessarily mean job creation.
The PMMY initiative is separate from this and will be the first attempt to capture the number of self-employed people in the country's job data. It is expected to add more than 50 million people to India's existing workforce of nearly 500 million, a senior government official told ET on the condition of anonymity.
Out of India's total workforce of 500 million, a little over 10% is in the organised sector, leaving a huge chunk in the unorganised sector, largely deprived of social security benefits and even minimum wages.
The labour bureau, which is under the labour ministry's administrative control, will soon analyse and compute data on PMMY beneficiaries, most of them being individuals who have become self-employed using loans provided under the programme to small units.
This could then be followed by the collation of data on other self-employed people in the country and adding that to get a broader picture of the country's total workforce.
At present, there is a data gap with respect to statistics on employment across various labour intensive sectors," the official said, adding that the revised survey could be out as early as April."Besides, it does not cover the self-employed, which over the course of three years, have become a significant proportion of the country's workforce." from informal to formal.
According to labour bureau statistics, 416,000 jobs were created in FY17 — 77,000 in the first quarter, 32,000 in the second, 122,000 in the third and 185,000 in the fourth. That's dwarfed by the 10 million added annually to India's workforce as a result of which there has been criticism of the government for not creating enough jobs.
Since PMMY's launch in April 2015, the government has sanctioned Rs 4.67 lakh crore in loans and disbursed Rs 4.13 lakh crore, benefitting 104.8 million people.The government estimates that more than 50% of the Mudra beneficiaries are individuals who have become self-employed after availing of the loans. The quarterly employment survey of the labour bureau is already being expanded to cover 18 sectors against eight sectors and 10,000 establishments compared to 2,000 now, accounting for 84% of employment in the non-farm sector.
The sectors added to the proposed survey include food products manufacturing, manufacturing of non-metallic mineral products, building construction, retail trade, education, health, hospitality as well as the food and beverage industry.The existing survey includes the textile, metals, gems and jewellery, automobiles, transport, IT BPO, leather, handlooms and the power loom sector.

The Economic Times, New Delhi, 30th January 2018


Popular posts from this blog

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and…

Defaults are Costly: Bankruptcy Law Gives Lenders More Teeth

Lenders can bargain strongly on asset recovery, defaulting borrowers can lose control of co With the Bankruptcy Act in place, banks can breathe easy, at least in the medium term, as corporate borrowers will now intensify their efforts to avoid loan defaults and the likely loss of management control of business, said Moody's Investors Service. This will empower lenders to bargain strongly in matters of asset recovery, while borrowers can gain with lower borrowing costs after three-four quarters. “The (defaulting) borrowers will lose control of the company as soon as the process is initiated,“ Srikanth Vadlamani, vicepresident, Financial Institutions Group, Moody's Investors Service, told ET from Singapore.“This, in itself, should act as a key incentive for them not to default in the first place.“ A few weeks ago, the government passed the Bankruptcy Bill, introducing a time-bound settlement process against loan default. With the Bankruptcy Act, the resolution process-from the date …

SC order on RBI circular: More options for banks to tackle defaulting firms

Lenders also have the option of restructuring the loans Lenders to companies which are under stress could now have three options to deal with them if they default on loans: take a haircut as part of a one-time settlement, restructure the loans for a longer tenure as they did when corporate debt restructuring schemes were allowed, or go to the Insolvency and Bankruptcy Code (IBC) for redress. These changes in the options available to lenders come, according to PE funds and bank lawyers who are involved in the IBC process, in the wake of the Supreme Court on Tuesday setting aside the 12 February RBI circular, which allowed a 180-day window to banks to resolve a company default.But they can still find a resolution. According to a Reserve Bank of India circular, a loan becomes a non-performing asset when banks cannot find a way of recovering their money in 90 days. In short, banks still have a window to resolve the default. Lenders can take a haircut as part of a one -time settlement of du…