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AN EVALUATION OF THE LABOURFORCE PARTICIPATION OF

THE RETIRED PEOPLE IN KERALA-A MICRO LEVEL STUDY

WITH SPECIAL REFERENCE TO KOTTAYAM DISTRICT

ATHIRA PRASAD

B.Ed. Student(Social Science)

MOUNT CARMEL COLLEGE OF TEACHER EDUCATION FOR
WOMEN,KANJIKUZHY

ABSTRACT

In the state of Kerala, where the retirement age is low as compared to other states of
India makes the qualified people idle at very early age and the society also losses the service of
them.

Assuming normal health conditions, all other groups except employees in the
employment status hierarchy can continue in their occupations. But this is not the case of
employees in whose case retirement makes experienced people idle and unproductive leading to
personal social and economic problems. It leads to wastage of well experienced and capable man
power at very earliest. This situation is very crucial in Kerala. Further the long period of rested
life makes most of the people bored, loss of their creativity and provide considerable amount of
mental strain to them. One study found that the death due to mental strains and psychological
issues are very high among the retired people in Kerala (P.Madhava Rao, 2001).

INTRODUCTION

Labour force participation rate is the proportion of the population ages 15
and elder, that is, economically active: all people who supply labour for the production of goods
and services during a specified period. In 2012, there were around 487 million workers in India,
the second largest after China.
Among the Indian states, Kerala is also one where there exists gender disparity in
work participation. The female-male participation ratio of the state is found to be very low at
0.43, while those of the other south-Indian states ranges from 0.64 to 0.79. A decline in work
participation is also noticed among the women workers in the NSSO and census estimates.

The share of people aged 60 years and above in the total population is highest in Kerala
(8.82%).in rural areas, the percentage share of elderly population is highest in the state of Kerala
(8.9%).In urban areas, Kerala has the highest proportion of elderly population (8.59%).

Article 41 of the constitution provides that the state shall, within the limits of its economic
capacity and development, make effective provision for securing the right to work, to education
and to provide assistance in carer of unemployment, old-age, sickness and disablement, and in
other carer of undeserved want. The National Council for Older Persons was constituted in 1999
under the chairpersonship of the minister for social justice and empowerment to advise the
government in the formulation and implementation of policy and programmes for the aged.

CONTENT

In Kerala, the people prefer to work even after they retire from service. Our present study
mainly focuses under this head. There are many factors that force the employers to continue to
work and engage in both public and private sectors. The population in Kerala according to the
2011 census is 33.4 millions, and Kerala stood first in literacy and life expectancy at birth, which
is respectively 99.91% and 74.According to the 2001 census, 12% of the population in Kerala is
above the age of 60 years, of this majority are females, 55.5%. But the present retirement age at
Kerala is 56, which is the lowest while comparing with the other states like Karnataka, Madhya
Pradesh, Assam, and Bihar etc. and in all central Government employees where the retirement
age is 60.

STATES HAVING STATES HAVING STATES HAVING
RETIREMENT AGE 56 RETIREMENT AGE 58 RETIREMENT AGE 60
 KERALA  TAMIL NADU  UNION
TERRITORIES
 JHARKHAND  GOA  KARNATAKA
 MAHARASHTRA  GUJARAT
 PUNJAB  WEST BENGAL

The Kerala public expenditure review committee has recommended rising of the
retirement age of state employees and teaching and nonteaching staff of private aided-
educational institutions and autonomous bodies such as universities from 56 – 58 years. The
committee in its report tabled in the assembly on February 2014, pointed out that there was an
unprecedented increase in expenditure (45.7%) on payment of salaries to Government employees
and teaching and nonteaching staff in all institutions coming under the Government system
during 2011-2012. The committee was chaired by B.A Prakash, former head, department of
Economics, university of Kerala.

Workers at retirement age need to make room for younger people seeking work- the
retirement age should not be raised, because many elderly need benefits as soon as they qualify
for them. As it is the job market is very sluggish and nobody wants to leave their jobs. Because
of that, workers do not have upward or even lateral mobility and the situation is worse for the
unemployed who are shut out completely.

OBJECTIVES

 To analyse the nature and pattern of retired employment
 To examine the gender dimension in retired employment
 To examine the various factors that affecting the employment activities of retired people

METHODOLOGY

The study is based on both primary and secondary data. The primary data is collected
from the retired people in Kottayam district through questionnaire method. For this a stratified
random sample of 100 retired people are selected. Besides, some primary data is collected from
various organisations through personnel interview methods. Secondary data is collected from
various published sources such as books, magazines, articles obtained from sources like website,
library etc... The survey is conducted under the premises of the Kottayam district.

FINDINGS

The following are the major findings from the study conducted in
Kottayam district by taking the sample of 50 retired persons from urban areas in this district.

 A major finding is that a good number of people who are engaged in post retirement
activities are those retired from the private sector. In the case of government employees,
the high social security benefits and pension payments reduces their labour force
participation after retirement.
 By observing the sector wise contribution of retired persons, the retired people are more
engaged in employing service sector than agriculture and manufacturing.
 The participation of retired persons, especially professionally qualified like doctors,
teachers, and engineers prefer to continue same work after their retirement.
 There are a number of motivating factors like lack of savings and insurance schemes, fall
in real wages due to rise in price, feeling of loneliness; high dependency ratio, debt
burden etc. compel the retired persons to go for search of employment in their retired life.
 A good number of people turn to non economic activities and it includes participation in
social, political and religious services.
 Another notable finding is that female participation in post retirement activities is lower
compared to males.
 One of the finding from the study is that retired employment is more concentrated on
high literacy districts like Kottayam and Ernakulam.
CONCLUSION

Usually retirement is the point a person stops employment completely or
decides to leave the labour force if he/she is unemployed. It means that by retirement a
person actually stops the active labour force participation and in a sense keep away from the
major segment of society. That is, the retired persons are considered as an ‘excluded’ group.
The employment participation of this excluded section has significant implications on the
labour market and the society.

REFERENCE

1. Ashenfelter C and R Layard: “Hand Book of Labour Economics, Vol. 1, North
Hotland, Amsterdam”.
2. Barrientos A , Gorman M and Heslop A : “Old Age Poverty in Developing Countries
: Contribution and Dependence in Later Life” ; 2003
3. Bhalla S and R Kaur (2010): “Labour Force Participation of Women in India: Some
Facts, Some Queries”.
4. Clark R, York A and Anker R (1997): “Economic Development and Labour Force
Participation of Older Persons”.
5. www.cds.edu
6. www.kottayam.nic.in
7. www.censusindia.gov.in
8. www.epw.in
9. www.knowledgecommission.gov.in

Findings of the study indicate that “productive aging “is preferred to idleness by the older
persons and this will make them include in the workforce by their own effort even after
retirement.
There is a popular saying that “An idle mind is a devil’s workshop”. It means that at any stage of
life the people should take part in work and social life. Similarly measures should be adopted by
government for promoting the post retirement entrepreneurship and employment suggestions.

 etired persons and need to bring them into economic and social mainstream.
 By increasing the retirement age or redeploying we can make effective use of human
capital of older workers.
 Retired persons should be given equal weightage.
CONCLUSION

Usually retirement is the point a person stops employment completely or
decides to leave the labour force if he/she is unemployed. It means that by retirement a
person actually stops the active labour force participation and in a sense keep away from the
major segment of society. That is, the retired persons are considered as an ‘excluded’ group.
The employment participation of this excluded section has significant implications on the
labour market and the society.