The employment situation in the country has improved in the recent years due to

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high industrial growth on the back of robust economy.

“High growth rate along with subdued or marginal increase in employment generation has been a pressing concern in the post-reform period. Available data provides evidence of creation of additional employment opportunities, though at a slower pace when compared with the high economic growth experienced in recent years,” according to the latest annual report of Reserve Bank of India.

Quoting a latest survey of the NSSO, it said employment situation improved in both rural and urban areas in 2009-10 in India compa­red with the previous round (2004-05). The overall unemployment rate, measured by current daily status, declined from 8.2 per cent in 2004-05 to 6.6 per cent in 2009-10 and the decline in unemployment rate was more pronounced for men than for women.

The overall work participation rate, however, declined to 39.2 per cent in 2009-10 from 42.0 per cent in 2004-05, largely driven by decline in women work participation rate.

High industrial growth, with a rate of growth in real value added in organised manufacturing of about 10 per cent per annum during 2003-09, also was associated with increase in employment in this sector. The latest ASI data reveal that between 2003-04 and 2008-09, employment in the organised manufacturing sector increased by 7.5 per cent per annum, as against decline of 1.5 per cent per annum between 1995-96 and 2003-04. This marks a clear difference from the previous phases of high growth in manufacturing output when there was no major contribution to employment.

Labour Bureau has been conducting a series of quarterly quick employment surveys since January 2009 to study the impact of the global economic slowdown on employment in eight major industries of the Indian economy. As per the latest data available, employment increased by 9.8 lakh during 2010-11 with the major share by the IT/BPO sector.