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Assignment report On COMPOSITION of LABOR FORCE

Submitted by:

This is to certify of that the seminar entitled by Composition Labor Force presented

APARNA DAS, Roll No. XXXXXXXX, 4th semester, Dept. of Business management is a bonafide work of his own, submitted in partial fulfillment of the requirement for the award of post graduation degree in computer science and engineering.

Head of department


What Labor force or Labor Market means??

In Human Resource strategy, Labor refers to A social class comprising those who do manual labour or work for wages, and Labor Force refers to An organized information about workers and their united action for any Productive work (especially physical work done for wages)

Background aspects of Labor Force:

The concept of pro-poor growth envisages acceleration in economic growth with concomitant growth in employment opportunities for the poor. This can be achieved when productivity growth, employment growth, and rise in real wages take place simultaneously at a rapid pace. India's economic growth over the last two decades has been quite robust - expanding at more than 5 per cent per annum. In recent years, the growth rate has reached 7-8 per cent. Employment, on the other hand, has not grown so fast. The employment growth rate decelerated from 2.04 per cent per annum between 1983 and 1993-94 to 0.98 per cent per annum between 1993-94 and 1999-2000. Employment in the organized manufacturing1 sector grew at 1.20 per cent and 0.53 per cent per annum over the 1980s and 1990s, respectively. The decline in organized sector employment is partly due to the downsizing of the public sector. Unorganized sector employment growth also witnessed a deceleration from 2.19 per cent per annum during the 1980s to around 1 per cent in the 1990s. In this backdrop of 'jobless growth' in the Indian economy in the last few years, creating an environment of 'pro-poor' growth becomes an even greater challenge. In recent years (between 1999- 2000 and 2004-05), employment growth rate has picked up. The 61st round of the National Sample Survey Organization (NSSO) shows that employment growth rose considerably (to nearly 3 per cent per annum) in the period from 1999-2000 to 2004-05, though the extent of decline in poverty has been much slower after 1993, compared with what was experienced from 1983 to 1993-94. This indicates that in recent years, economic growth and employment generation have both been more beneficial to those located in the upper income strata of society than the poor. In other words, in the present situation of economic growth, employment is

being generated more for the educated labour force than for the poor with lower levels of human capital. All this is likely to have resulted in increasing inequality.

Labor Force in India :

The Indian labor market can be categorized into three sectors: Rural workers , who constitute about 60% of the workforce Organized of the formal sector, that constitutes about 8% of the workforce; and Urban unorganized or informal structure which represents the 32% of the workforce. The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. The labor force has grown from 276.3 million to 385.5 million between 1977-78 and1993-94 showing an annual growth rate of 2.1%. During the year 1999-2000, the workforce was estimated to be 407 million. In 2004-05 the labor market consisted of 430 million workers and has grown up to 500 million in 2006.

Two-third of Indias workforce is employed in agriculture and rural industries. One-third of rural households are agricultural labor households, subsisting on wage employment. Only about 9 percent of the total workforce is in the organized sector; the remaining 91 percent are in the unorganized sector, selfemployed, or employed as casual wage laborers. The labor force in year 2006 has grown up to 509.3 million out of which 60% are in agriculture, 12% are employed in industries and the residual 28% are in services.

Labor force can be divided into four categories: self employed workers, wage and salary earners, casual workers and unemployed. Of these, self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis. Same is the case with those unemployed who are actively seeking work. Contractual and hence stable hired employment (with the same employer and/or in the same job) on a regular basis is covered in the description wage and salary workers. Persons who are engaged in their own farm or non- farm enterprises are defined as self employed. The employees in an enterprise can be either regular salaried/ wage employees or casual wage employees who are normally engaged on a day today basis. The casual wage workers both in public work and other types of work dont have any job security or social security. These workers, either in formal or informal sector or in private households, are informal workers. The regular salaried/wage employees are those working in others farm or non- farm enterprises and getting in return salary or wages on a regular basis and not on the basis of daily or periodic renewal of work contract. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices, both full time and part time. This category of persons may, therefore, include persons engaged regularly on an hourly basis, temporary workers, out- workers, etc. The table given below classifies labor force across male-female and rural-urban dimensions. It is clear that Self-employment and casual labor statuses are more prevalent among rural than urban labor force and among female than male workers. The Incidence of unemployment is higher in the urban than in the rural labor force with nearly 48 per cent of the total unemployed persons coming from aggregate urban labor force whose share in total (rural plus urban) work force is 22 per cent.

Those reporting wage and salary earning dominate in the urban labor force, their share being around 62 per cent (lines 10 to 12 of Table).

Composition or categorization of labor forces can be done in many ways.

Labour Force by Birthplace

Labor Force by Birth place:

In August 2000, the Australian labour force totalled 9,649,700 people: 7,285,200 Australian-born and 2,364,500 overseas-born. Of the overseas-born, 1,359,000 people were from non-English speaking countries (NESC) and 1,005,500 were from the main English speaking countries (MESC). Of migrants in the workforce, 94.7 per cent of MESC migrants and 92.6 per cent of NESC migrants were employed. This compares with 93.9 per cent in employment for the Australian-born. The Australian-born are more strongly represented in the workforce than migrants. The participation rates of Australian-born men and women are 75.3 and 58.9 per cent respectively. The participation ratio for NESC men and women are 63.5 and 44.1 per cent respectively and for MESC men and women 72.5 and 55.7 per cent respectively

Percentage Distribution of Workers(of all age groups) by Education Categories NSS Round 38th(1983) 43rd(1987-88) 50th(1993-94) 55th (1999-00) 61st(2004-05)

Upto Primary 82.22 80.01 74.31 68.47 64.72

From Primary to Higher Secondary 15.34 17.00 21.60 26.52 28.17

above Higher secondary 2.44 2.99 4.09 5.01 7.12

Labor Force by Education :

Following graph shows the relation between labor force and Education

Table 1: Classification Categories of Labour Force for each Industry Classification Gender Age groups Education Industries

No. 2 3 3 31

Categories Males, Females <29, 29-50, >50 Up to Primary, Between Primary to Higher Secondary , above Higher Secondary

Percentage Distribution of Employment by Age Groups (years) NSS Round 38th(1983) 43rd(1987-88) 50th(1993-94) 55th (1999-00) 61st(2004-05)

<29 44.31 42.39 39.33 37.04 35.41

30-49 38.62 40.18 42.68 44.94 46.23

50+ 17.07 17.43 17.99 18.02 18.36

Labor Force by Age group :

Labor Force by Area and Gender :

1983 and 1993-94. However, there was a dip in 1987-88 and thereafter in 1999-2000. The rate reached an unprecedented magnitude of 38 per cent in 2004-05 . The work participation rate among males (usual principal status) shows that around half of the male population has been working. The work participation rate increased by one percentage point between 1983 and 1993-94 (excluding 1987-88 because it was a drought year) and subsequently dropped to 52 per cent in 19992000 before it was restored in 2004-05 at marginally above the 1993-94 figure.

Among the female population, however, only an average one-fifth has been working. The principal status work participation rate dropped by about one percentage point in the period from 1993- 94 to 1999-2000 after remaining a little below 22 per cent between 1983 and 1987-88. In 2004-05, the pre-1990s figure seems to have been restored. While the subsidiary status work participation rate among males is minuscule, it is of considerable magnitude among females; it fell perceptibly in 1999-2000 as compared with 1993-94, butseemed to be reviving in 2004-05.

Labor Force comparision between countries:

Labor force - by occupation: (only In India)

agriculture: 53% industry: 19% services: 28% (2011 est.)

The above report shows the composition of labor force . Labor force or labor market shows the relation between employed and unemployed. Here the report is shown according to the survey report of National Sample Survey Organisation (NSSO) and Central Intelligence Agency(CIA) This report clearly explains almost all compositions of labour force and shows relation between them, and their inter-dependencies.