Saturday, July 22, 2017

Employment in Unincorporated Nonagricultural Enterprises in India during July 2015 to June 2016

A press note dated (29.6.2017) is given by MOSPI on this topic.

6.34 crore establishments (firms) are engaged in economic activities. This figure excludes firms in construction sector.

Breakup - 31% in manufacturing - 36.3% in trading, 32.6% in services

51% rural, 49% urban

84.2% do not employ any regular worker (family members only help)

11.13 crore workers are employed.

62% work in the own account enterprises and 38% work as wages/salary paid workers.

96% proprietory, 2% partnerships, 1.8% self help groups (SHG)

20% proprietors are ladies.

98.3% are perennial or permanent activities.

87% operate from fixed location, 4.4% mobile, 9% street vendors.

31% have registered with some authority or other.

Gross value added 11.53 lakh crores

Gross value added per worker   11.53 lakh crores/11.13 crore - approximately one lakh 

Average emoluments of hired workers Rs. 87,544

Market value of owned fixed assets per enterprise is valued at Rs. 2,31,869

A quick conclusion is one can look for opportunities making one lakh in year by investing one lakh rupees in industry/services/trading activities.

Is unemployment a real problem in India?

According to me unemployment is not a very big problem in India at the moment. The problem of unemployment can be solved with good strategy and action plans.  Why do I say it?

See this analysis of employment in India.

The quantitative dimensions of unemployment, captured in the 5th Employment Unemployment Survey (EUS) reveals the following. There has been a progressive worsening of the unemployment situation since 2011-12, as captured by the 2nd round of the EUS. 

At the All-India level, the number of persons aged 15 years and above employed per 1,000 persons went down from 529 to 503. Overall unemployment rate worsened from 3.8 percent to 5 percent.

If more than 50% of the population above age 15 are employed, it is a good situation. As we know we want 30% of the student age group to be in colleges. Also we want at least one person for family to be employed at least.  Which means that employment above 25% is good. 50% is very good. If means, in an average family of 4 members (including 2 elders), 2 are employed.

That does not mean unemployment is not a problem for persons seeking employment. We need to take actions to make the system more comforting persons who are seeking employment for the first time after completing their education.

No comments:

Post a Comment