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GS Paper: Issues relating growth and development, employment

  • [20th July 2024] The Hindu Op-ed: Living in denial about unemployment

    [20th July 2024] The Hindu Op-ed: Living in denial about unemployment

    PYQ Relevance:

    Q Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of society. Discuss. (UPSC IAS/2022)

    Q “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain (UPSC IAS/2014)

    Mentor comment: Conflicting reports on unemployment in India highlight significant issues. While the Reserve Bank of India reported the creation of 8 crore jobs over the past few years, the Centre for Monitoring Indian Economy noted a rise in the unemployment rate to 9.2%. The disparity arises from reliance on outdated data, particularly from the unorganised sector, which employs 94% of the workforce. Additionally, economic shocks like demonetisation and the COVID-19 pandemic have altered employment dynamics, complicating accurate assessments and leading to public confusion over the true state of employment.

    Let’s learn!

    __

    Why in the news? 

    Recently, Prime Minister Modi cited an RBI report claiming 8 crore jobs created in the last 3-4 years, accusing the Opposition of spreading false unemployment narratives.

    Conflicting reports and statements related to employment

    • KLEMS Database
      • According to the RBI, India added 4.7 crore jobs in FY24, raising total employment to 64.33 crore. This represents a 6% growth in employment compared to the previous year, which was significantly higher than the 3.2% growth reported for FY23.
      • The period from 2016 to 2024 was marked by several economic shocks, including demonetization, the introduction of the Goods and Services Tax, the Non-Banking Financial Companies crisis, and the COVID-19 pandemic.  
    • SBI’s Counter Report
      • The State Bank of India (SBI) released a report stating that even when excluding agriculture, 8.9 crore jobs were created in manufacturing and services from FY14 to FY23, and 6.6 crore jobs from FY04 to FY14. 
      • It emphasized that the total labour force in India is approximately 59.7 crore, closely aligning with the 56.8 crore reported in the recent Annual Survey of Unincorporated Sector Enterprises (ASUSE) survey.
    • CMIE’s Unemployment Data
      • The Centre for Monitoring the Indian Economy (CMIE) reported a rise in the unemployment rate to 9.2% in June 2024, marking an increase from 7% the previous month. 
      • This contrasts sharply with the optimistic employment figures presented by the RBI and SBI, suggesting a disconnect between reported job creation and actual employment conditions.
    • Public Sentiment and Ground Reports
      • Ground reports and public sentiment indicate that unemployment remains a significant issue, particularly for educated youth. High competition for limited job openings is evident, as seen in the 47 lakh applicants for 60,000 constable positions in Uttar Pradesh and 1.25 crore aspirants for railway recruitment exams in 2022. Protests related to employment schemes further highlight the frustrations of job seekers

    About KLEMS Database

    • The Reserve Bank of India (RBI) released the India KLEMS Database on July 7, 2024, which outlines methodologies for measuring productivity and employment across 27 industries in the Indian economy.
    • It does not independently estimate employment but relies on official data sources, including the Employment and Unemployment Surveys (EUS) by the NSSO and the Periodic Labour Force Survey (PLFS).
    • The KLEMS data incorporates various economic measures, including Gross Value Added and Labour Quality, covering 27 industries across the Indian economy.

    Challenges in KLEMS Database

    • The Indian labor market is characterized by a significant unorganized sector, which employs approximately 94% of the labor force. This sector is difficult to survey regularly, leading to gaps and outdated data. 
    • The last Census was conducted in 2011, and the Urban Frame Survey (UFS) data is from 2012-2017, resulting in reliance on older data that may not accurately reflect current employment conditions.
    • The conflicting narratives from various sources, including the Prime Minister’s references to KLEMS data, have led to public confusion regarding the true state of employment in India.

    Way forward: 

    • Clear Communication of Data Sources: Government agencies and institutions should clarify how figures from different surveys (e.g., KLEMS, PLFS, ASUSE) relate to one another, and the implications of using outdated data in light of recent economic shocks.
    • Regular and Comprehensive Surveys: The government should prioritize conducting more frequent and comprehensive surveys, particularly focusing on the unorganized sector, which employs a significant portion of the workforce. 

  • South Asia, India risk squandering demographic dividend: World Bank

    Why in the News? 

    Recently, the ‘Job for Resilience Report’ was published by the World Bank. The Report talks about how the South Asia region including India is not making use of its demographic dividend.

    • The pace of job creation in the region fell well short of the growth in the working-age population, even as it projected a strong 6.0-6.1% growth for 2024-25 for the region in its South Asia region.’

    Main findings in this report:

    The South Asia’s labor markets as Emerging markets and developing economies: 

    • Declining employment ratio: South Asia’s employment weakened from 2000–23, despite a 6% post-pandemic surge. While most EMDEs remained stable, South Asia declined by 2%, with varied changes within.
    • Low employment ratios: Except for Nepal, South Asian countries have employment ratios significantly lower than other EMDEs, with South Asia’s ratio at 59%, notably lower than the 70% average elsewhere in 2023.
    • Employment weakness for men and women: In South Asia, men’s employment ratios declined over two decades, compared with other EMDEs. Women’s ratios, persistently low and half those elsewhere, primarily contribute to South Asia’s lower overall employment rates.
    • A missing engine of growth: In the 2010s, South Asia experienced a surge in labor productivity growth, which later declined below the EMDE average from 2020–23. Unlike other EMDEs, South Asia’s output growth relied heavily on labor productivity growth and working-age population expansion. However, declining employment ratios hampered output growth.

    Report on Indian Scenario:

    • Trends in employment and labor productivity: India’s employment growth in the 2010s was weak but rebounded post-pandemic. The employment ratio declined significantly until 2022 but partially recovered by 3 percentage points in 2023.
    • Migrant workers:  In India, Migrant workers returned to rural areas, and emigration from rural areas slowed, during the pandemic.5 India has the region’s second-largest share of workers in agriculture (44 per cent) after Nepal.
    • Employment composition: India’s industrial employment grows with public investments, eased labor regulations, and contract labor. The services sector, led by IT, BPO, and healthcare, thrives on a skilled workforce and digital infrastructure, limiting opportunities for unskilled labor.

    Measures to address the challenges highlighted in the Report: 

    • Skill Development Programs: Implementing extensive skill development programs to equip the workforce with the necessary skills demanded by the evolving job market, focusing on both technical and soft skills.
    • Labour Market Reforms: Continuously reviewing and refining labor regulations to strike a balance between protecting workers’ rights and fostering a conducive environment for job creation and investment.
    • Promotion of Inclusive Growth: Implementing policies aimed at promoting inclusive growth, particularly focusing on increasing women’s participation in the workforce through measures like affordable childcare, flexible work arrangements, and addressing cultural barriers.
    • Investment in Infrastructure: Continued investment in infrastructure development to facilitate the growth of industries and services, creating more employment opportunities, particularly in rural areas.
    • Enhancing Productivity: Implementing measures to enhance productivity across sectors through technological advancements, innovation, and efficient resource allocation.

    Conclusion: World Bank warns South Asia, including India, risks wasting demographic dividend due to declining employment ratios and low productivity growth. Urgent measures needed: skill development, labor reforms, inclusive growth promotion, infrastructure investment, and productivity enhancement.

    With inputs from:

    https://openknowledge.worldbank.org/server/api/core/bitstreams/4ec19c2d-65fd-4523-8020-338f0cb98523/content

  • India Employment Landscape: Insights from the ILO-IHD Report 2024

    Why in the news?

    According to the India Employment Report 2024 released by the International Labour Organisation (ILO) and the Institute of Human Development (IHD), India’s youth account for almost 83% of the unemployed workforce.

    About the International Labour Organization (ILO)

     

    • The ILO is a UN agency whose mandate is to advance social and economic justice through setting international labour standards.
    • Founded in 1919 under the League of Nations (under Treaty of Versailles) it is the first and oldest specialised agency of the UN.
    • India was one of the founding members of the ILO, joining the organization in 1919.
    • The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands.
    • Its international labour standards are broadly aimed at ensuring accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security and dignity.
    • The Governing body is the apex executive body of the ILO which decides policies, programmes, agenda, budget and elects the Director-General.
    • It meets 3 times a year, in March, June and November.
    • ILO has received the Nobel Peace Prize in 1969.

     

    Major Conventions of the ILO:

    • Forced Labour Convention (No. 29)
    • Abolition of Forced Labour Convention (No.105)
    • Equal Remuneration Convention (No.100)
    • Discrimination (Employment Occupation) Convention (No.111)
    • Minimum Age Convention (No.138)
    • Worst forms of Child Labour Convention (No.182)
    • Freedom of Association and Protection of Right to Organised Convention (No.87)
    • Right to Organise and Collective Bargaining Convention (No.98)

     

    Highlights of the India Employment Report 2024:

    1. Labour Market Dynamics
    • Long-Term Deterioration: The Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and the Unemployment Rate (UR) showed a long-term deterioration between 2000 and 2018, but witnessed an improvement after 2019.
    • Education Impact: The share of youngsters with secondary or higher education in the total unemployed youth has almost doubled from 35.2% in 2000 to 65.7% in 2022, indicating a significant shift in educational qualifications among job seekers.
    1. Challenges and Insecurities
    • Informal Workforce: Almost 90% of workers remain engaged in informal work, while the share of regular work declined after 2018, leading to widespread livelihood insecurities.
    • Contractualisation: There has been a rise in contractualisation, with only a small percentage of regular workers covered by long-term contracts, exacerbating job insecurities.
    1. Skills Gap and Gender Disparities
    • Skills Deficiency: Despite being a demographic dividend, the report notes a skills gap among India’s young workforce, with a significant percentage unable to perform basic digital tasks or mathematical operations.
    • Gender Gap: India faces substantial gender disparities in the labour market, with low rates of female labour force participation and high levels of unemployment among highly educated young women.

     

    PYQ:

    2018: International Labour Organization’s Conventions 138 and 182 are related to:

    1. Child labour
    2. Adaptation of agricultural practices to global climate change
    3. Regulation of food prices and food security
    4. Gender parity in the workplace
  • [9 March 2024] The Hindu Op-ed: India’s suboptimal use of its labor power

    [9 March 2024] The Hindu Op-ed: India’s suboptimal use of its labor power

    PYQ Relevance:

    Prelims:
    Disguised unemployment generally means (UPSC CSE 2013)
    a) A large number of people remain unemployed
    b) Alternative employment is not available
    c) Marginal productivity of labor is zero
    d) Productivity of workers is low

    Mains:
    1. Account for the failure of the manufacturing sector in achieving the goal of labor-intensive exports. Suggest measures for more labor-intensive rather than capital-intensive exports. [UPSC CSE 2017]

    2. How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? [UPSC CSE 2016]

    3. The nature of economic growth in India in recent times is often described as jobless growth. Do you agree with this view? Give arguments in favor of your answer. [UPSC CSE 2015]

    Note4Students: 

    Mains: Sectors of Indian Economy; Employment;

    Prelims: Types of Employment;

    Mentor comments: India’s labor market is grappling with issues such as underemployment, low-quality jobs, and high unemployment rates. In such a scenario, we need to focus on creating high-wage jobs and improving the quality of employment opportunities to tackle rising unemployment rates and disparities across regions, gender, and generations. Addressing these challenges requires a comprehensive approach that focuses on creating better job opportunities across various sectors while preparing the workforce for the future.

    Let’s learn. 

    —

    Why in the News?

    According to the recent Labour Force Participation Rate, India’s labor market faces challenges with a vast majority of the population earning income through informal employment, lacking job security and benefits. 

    What is the current state of the Indian Labor market?

    • According to the Periodic Labour Force Survey (PLFS), the labor force participation rate is 50%, with a lower female participation rate of 23% compared to 67% for males.
    • In 2017–18, 90.7% of employment was in the informal sector, marked by low productivity and underemployment. Self-employment accounts for 52% of workers, while only 23% are regular salaried workers.

    Context:

    • Although the recent data shows an increase in labor force participation and a decrease in unemployment rates in the Indian Market, the growth is primarily driven by self-employment and unpaid family workers.
    • There has been stagnation in real earnings for wage/salaried workers and the self-employed. The dominance of low-quality work in India’s labor market poses macroeconomic growth concerns and highlights the need for creating better job opportunities.

    What are the current major shifts in the Indian Labor Market?

    • Dynamics of job creation and loss: India’s job market is characterized by a scarcity of good jobs, with a large portion of the workforce employed in informal, low-wage, and insecure sectors like agriculture.
      • Services sector: It contributes significantly to both job creation and loss, with wholesale and retail trade playing a substantial role.
      • Construction sector: It is known for insecure working conditions and low pay, generates a significant number of new jobs, raising concerns about job quality. Unemployment rates have been high even before the pandemic, with challenges exacerbated by the COVID-19 crisis.
    • Improvements in Labour Market:
      • Labour Force Participation and Unemployment Rates: LFPR increased steadily from 52.35% in 2017-18 to 58.35% in 2021-22, driven notably by rural women. Overall unemployment rate decreased from 6.2% in 2017-18 to 4.2% in 2021-22, with a similar downward trend for youth unemployment.
      • Self-Employment Dynamics: LFPR and unemployment rate improvements largely attributed to self-employment. Rise in unpaid family workers and own-account workers reflect a decline in job quality within the workforce.
    • Earnings:
      • Earning Trends:
        • Aggregate Earnings: All-India average real daily earnings increased by around ₹10 between 2017-18 and 2021-22, a 4% increase.
        • Rural and Urban Earnings: Both rural and urban daily earnings increased by an average of ₹10 to ₹14.
        • Earnings Disparities: Wage and salaried workers had the highest earnings, followed by self-employed and casual workers. Salaried and self-employed earnings stagnated, while casual workers saw a 20% increase.
      • Employment Trends:
        • Self-Employment Growth: Self-employed workers saw the highest growth in employment between 2017-18 and 2021-22. The subcategory of unpaid family workers experienced significant growth in numbers.
        • Earnings Disparities: Top 20% of salaried workers experienced a drop in real daily average earnings.
      • Structural Transformation:
        • Labour Force Participation Rate (LFPR) rose, but closer examination reveals disparities in employment types.
        • Notable rise Female Workforce Participation driven by self-employment in agriculture.
        • Sectoral Shifts: Movement from agriculture to construction observed among male workers

    How can the challenges faced by the Indian Labor Market can be addressed?

    • Building Quality over Quantity: Government needs to explore innovative solutions to generate demand and create employment opportunities. Secondly, it also needs to support skill development initiatives, by bridging the skill gap by enhancing the industry-academia linkages, fostering internships, and encouraging entrepreneurship for better absorption of skilled labor.
    • Need for Labor Reforms: Advocate for rational and progressive labor reforms that consider the interests of both workers and employers.
    • Building good Work Culture: Promoting transparency, responsible business practices, and fair labor market operations through effective leadership and employee engagement initiatives is the need of the hour.
    • Need for constructive work: Strive for constructive dialogue, collaborative decision-making, and a cooperative environment to address disguised unemployment, seasonal unemployment, and educated unemployment through policies promoting job creation.

    Conclusion: According to NITI Aayog, India has potential to grow at 8% as the country is labor-rich with enough institutional maturity of a functioning democracy. In simpler terms, the Investment to GDP ratio is the area where we need to focus as it plays a crucial role in the demand-side of the economy.

    References

    https://www.thehindu.com/opinion/lead/indias-suboptimal-use-of-its-labour-power/article67929725.ece

    8 Major Problems Faced by Labour Market in India

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4609381

    https://www.adb.org/publications/demographic-dividends-india-evidence-and-implications-based-national-transfer-accounts

    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9848021/

    https://www.theindiaforum.in/economy/quantity-vs-quality-long-term-trends-job-creation-indian-labour-market

    https://www.thehindu.com/business/Economy/india-is-a-labour-rich-country-with-enough-institutional-maturity-can-get-to-8-growth-niti-aayog-vice-chairman/article67613743.ece

  • The truth about India’s booming toy exports

    India's Toy Industry: Unravelling the Recent Export Surge - Civilsdaily

    Central Idea:

    The article discusses India’s toy industry’s recent shift to net exports, attributing the success to protectionist measures under the ‘Make in India’ initiative. It raises questions about the efficacy of these policies and calls for a public release of an officially sponsored research study by the Indian Institute of Management Lucknow (IIM-L) to facilitate a more informed policy discussion.

    Key Highlights:

    • Between 2014-15 and 2022-23, India’s toy exports increased significantly, turning the country into a net exporter, while imports declined.
    • An unpublished IIM-L case study, sponsored by DPIIT, credits the export success to promotional efforts under ‘Make in India.’
    • The article questions the reported success and analyzes official statistics to understand the factors behind the industry’s turnaround.

    Key Challenges:

    • Lack of transparency regarding the IIM-L case study, creating ambiguity about the actual impact of ‘Make in India’ on the toy industry.
    • Concerns about the sustainability of protectionist measures and the potential for “rent-seeking” behavior in the absence of complementary policies.
    • The decline in labor productivity and other indicators in the toy industry despite protectionist measures.

    Key Terms:

    • ‘Make in India’ initiative.
    • Net exports (exports minus imports).
    • Protectionism.
    • Non-tariff barriers (NBTs).
    • Quality control order (QCO).
    • Annual Survey of Industries (ASI).
    • Fixed capital per worker.
    • Gross value of output.

    Key Phrases:

    • “Turnaround in the labour-intensive industry.”
    • “Rising protectionism since 2020-21.”
    • “Infant industry argument.”
    • “Learning by doing.”
    • “Virtuous circle of expanding domestic capabilities.”

    Key Quotes:

    • “India has turned into a net toys exporter since 2020-21. ‘Make in India’ policies made it possible.”
    • “Perhaps the IIM-L’s study uses different evidence to buttress its contention.”
    • “Rising tariff and non-tariff barriers have made it possible.”

    Key Statements:

    • The article questions the correlation between ‘Make in India’ policies and the reported success in the toy industry.
    • Concerns are raised about the impact of protectionism on the industry’s long-term competitiveness.
    • Calls for transparency and public release of the IIM-L case study to facilitate informed policy discussions.

    Key Examples and References:

    • Reference to the tripled customs duty on toys in February 2020 and the imposition of non-tariff barriers since January 2021.
    • Mention of the decline in labor productivity and other indicators in the toy industry despite protectionist measures.

    Key Facts and Data:

    • Toy exports increased significantly between 2014-15 and 2022-23, making India a net exporter.
    • The trade balance for toys turned positive in 2020-21 after a gap of 23 years.
    • Customs duty on toys was raised to 70% in March 2023.

    Critical Analysis:

    • The article critically examines the reported success of ‘Make in India’ policies in the toy industry, emphasizing the role of protectionism.
    • Concerns are raised about the sustainability of protectionist measures and the need for complementary policies to enhance domestic capabilities.
    • The decline in labor productivity challenges the notion that protectionism has led to improved industry competitiveness.

    Way Forward:

    • Advocate for transparency by making the IIM-L case study public to inform meaningful policy discussions.
    • Emphasize the need for a comprehensive policy approach, combining protectionism with investment policies and infrastructure development.
    • Encourage a dialogue on the long-term impact of protectionist measures on the toy industry’s competitiveness and the potential for “rent-seeking” behavior.

  • Youth Unemployment in India: A Persistent Challenge

    Central Idea

    • In 1932, M Visvesvaraya highlighted the issue of unemployment among educated individuals in India.
    • Ninety years later, the issue of youth unemployment remains a significant concern, despite official data indicating a decrease in the overall unemployment rate.

    Unemployment Trends: Data Analysis

    • Official Statistics: According to the Periodic Labour Force Survey (PLFS), the unemployment rate decreased from 6.1% in 2017-18 to 3.2% in 2022-23.
    • Disparities in Experience: Despite the overall reduction, young, highly educated workers face the highest unemployment rates, indicating a structural problem in the Indian economy.

    Educational Attainment and Unemployment

    • Higher Education and Unemployment: Individuals with higher education have consistently faced higher unemployment rates since the 1990s.
    • Trends Over Time: Unemployment rates for graduates have fluctuated, reaching 17% in 2017-18 and then dropping to 13% in 2022-23.

    Youth Unemployment

    • Young Graduates: The unemployment rate for young workers (aged 18 to 29) with graduate degrees has been notably high, with significant long-term unemployment spells.
    • Increasing Share of Graduates: The proportion of graduates in the labor force has risen from 5% in 1993-94 to around 15% in 2022-23, impacting overall unemployment rates.

    Challenges and Implications

    • Growing Concern: The increasing share of educated workers in the labor force, coupled with high unemployment rates among them, points to a deepening problem.
    • Need for Analysis: Understanding the causes of unemployment among the highly educated is crucial, whether it’s the education system’s failure to impart relevant skills or the economy’s inability to create sufficient jobs.

    Conclusion

    • Serious Issue: Youth unemployment in India is a critical issue that needs comprehensive analysis and action.
    • Harnessing Demographic Dividend: Effective measures are required to ensure that the aspirations of the youth are met and the potential of India’s demographic dividend is fully realized.
    • Policy Focus: Addressing youth unemployment requires targeted policies that focus on skill development, job creation, and aligning education with market needs.

  • How universities and industry can collaborate

    A new phase of Internationalization of Indian higher education is around the corner – Education21

    Central idea

    The article underscores the underutilization of collaborations between Indian higher education institutions (HEIs) and industries, hindering gains from intellectual property (IP) commercialization. It identifies key challenges such as divergent goals, cultural differences, communication gaps, and the need for trust-building.

    Key Highlights:

    • Industry-academia collaborations in Indian higher education are underutilized, hindering potential gains from IP commercialization and technology transfers.
    • Collaborative success requires shared goals, addressing cultural differences, establishing effective communication, and building trust.

    Key Challenges:

    • Divergent Goals: Misalignment between HEIs’ focus on theoretical knowledge and industries’ profit-driven practical applications.
    • Cultural Differences: Varied approaches to data scrutiny and application development create challenges in collaboration.
    • Communication Gaps: Lack of understanding of industry regulatory processes and language differences hinder effective partnerships.
    • Building Trust: Fear of research results being published without considering commercial implications, requiring clear agreements.

    Key Terms:

    • Intellectual Property (IP)
    • Technology Transfer
    • Collaborative Goals
    • Cultural Gap
    • Communication Channels
    • Trust Building
    • Short-term Collaborations
    • Long-term Research Collaborations
    • Symbiotic Relationship

    Key Phrases:

    • “Shared goals crucial for collaboration success.”
    • “Cultural gap between academia and industry must be bridged.”
    • “Effective communication channels and trust-building are essential.”
    • “Clear agreements on IP and publication to ensure transparency.“

    Key Examples:

    • Collaboration between HEI and renewable energy company highlights cultural differences.
    • Pharmaceutical company collaboration emphasizes the need for understanding regulatory processes.
    • University-tech company collaboration for software application development showcases IP arrangement challenges.

    Key Facts:

    • Many Indian HEIs miss out on capitalizing on research through IP commercialization.
    • Lack of collaboration hampers gains from patents, licensing, and start-up ventures.

    Critical Analysis:

    • The article highlights crucial challenges in industry-academia collaborations and emphasizes the importance of addressing them for mutual benefit.
    • The need for effective communication, trust-building, and clear agreements is appropriately underscored.

    Way Forward:

    • Foster a culture of open dialogue and flexibility.
    • Implement training programs for understanding industry processes.
    • Encourage short-term collaborations for quick problem resolution.
    • Promote long-term research collaborations for cutting-edge technology development.
    • Government funding agencies should announce research grants and encourage joint project proposals.

    By addressing these challenges and fostering collaboration, Indian higher education institutions and industries can create a mutually beneficial ecosystem.

  • Best of Both Sides: To combat pollution, use of personal vehicles must decrease

    Urban Air Pollution: Sources and Pollutants - Airqoon - Cost effective and easy to use air monitoring at scale

    Central idea

    Delhi grapples with severe smog, prompting emergency measures to curb pollution, including restricting vehicles. Despite past efforts to mitigate vehicular emissions, the city faces challenges in reducing dependence on personal vehicles. The article emphasizes the need for stronger political will, effective restraints, and enhanced public transport to address the persistent air quality and mobility crisis in Delhi.

    Key Highlights:

    • Delhi faces severe smog, prompting emergency measures to curb pollution, including restrictions on vehicles.
    • Vehicles contribute significantly to Delhi’s air pollution, with official data indicating a 40% emission of particulate load.
    • Despite previous efforts, vehicular emissions remain challenging to mitigate, with over 80 lakh on-road vehicles in Delhi.

    Challenges:

    • Cumulative emissions from increasing vehicle numbers and congestion undermine emission improvements per unit.
    • Personal automobile dependence persists, with a 47% growth in car numbers during 2022-23.
    • The shift to public transport is hindered by inadequate infrastructure, low passenger numbers per bus, and a lack of effective restraints on personal vehicle usage.

    Key Phrases:

    • “Crippling mobility crisis” in Delhi due to emergency measures restricting vehicles.
    • “Gut reaction” to underplay the role of vehicles in air pollution amid public criticism.

    Analysis: The article underscores the persistent challenge of vehicular emissions in Delhi, despite past efforts to curb pollution. It highlights the need for a substantial shift to public transport to address the mobility crisis and reduce dependence on personal vehicles.

    Key Data:

    • Over 80 lakh on-road vehicles in Delhi, with car numbers witnessing a 47% growth in 2022-23.
    • Transport diesel consumption reduced by 46% between 2014 and 2022.
    • Only 7,041 buses against the mandated 10,000, with a 48% drop in passengers carried per bus since 2017-18.

    Key Facts:

    • Despite emission improvements, Delhi’s air quality remains a concern, leading to emergency measures.
    • Public transport ridership faces challenges, with a drop in passengers per bus and increased empty kilometres.
    • The article emphasizes the need for stronger political will to restrain personal vehicle usage and promote public transport.

    Way Forward:

    • Strengthen political will to implement effective restraints on personal vehicle usage, such as parking rules and congestion pricing.
    • Focus on making integrated public transport more convenient, accessible, and affordable.
    • Implement scalable solutions, including a dense street network for walking and cycling, and housing closer to transit nodes.

  • Closing the gender pay gap in the workforce

    What’s the news?

    • 2023 Nobel Prize winner in Economics, Goldin’s groundbreaking work highlights that the key to addressing the underrepresentation and underpayment of women lies not in their homes but in the labor market.

    Central idea

    • In the realm of economic orthodoxy, long-held beliefs attributed women’s absence from the labor force to childcare responsibilities and lower education levels, perpetuating a gender pay gap. However, Claudia Goldin, the esteemed 2023 Nobel Prize winner in Economics, challenged these notions and offered a fresh perspective.

    Goldin’ theory

    • Claudia Goldin’s lifetime of research has bestowed a name and a voice upon these women’s challenges.
    • She meticulously traces the evolution of the American economy from agriculture to manufacturing to services, revealing that women were historically excluded from market activities.
    • Only when jobs expanded beyond factories into offices, schools, and hospitals did women gain access to the workforce.
    • Despite their increasing educational achievements, women continued to earn less than their male counterparts.
    • Goldin’s theory attributes this persistent wage gap to the difficulty women face in pursuing jobs with demanding responsibilities.

    A Solution for Gender Equity

    • Reduce Reliance on Heroic Efforts: Goldin suggests moving away from a culture of greedy work that rewards extreme efforts. Instead, organizations should create roles that don’t require superhuman commitments, promoting work-life balance.
    • Promote Moderate Work Hours: Goldin’s solution includes advocating for reasonable work hours, benefiting both genders and avoiding productivity issues associated with excessively long hours.
    • Provide Predictable Schedules: Emphasizing stable work hours helps employees better plan family responsibilities and reduces stress, contributing to gender equity.
    • Institutional Support: Supporting institutions should include educational reforms to ease parental homework burdens and urban planning that reduces commuting, making it easier for both men and women to balance work and personal life.

    The Road Ahead in India

    • Service Sector Opportunities: India’s growing service sector offers the prospect of increased employment opportunities for women. This aligns with Goldin’s observation that women found jobs when economic production shifted from factories to offices, schools, and hospitals.
    • Rising Education Levels: With a continuous increase in women’s educational achievements, there is a growing potential to enhance their participation in the workforce. This trend mirrors Goldin’s emphasis on education as a factor that can boost employability.
    • Declining Fertility Rates: The decreasing fertility rates in India can contribute to freeing up more of women’s time, potentially facilitating higher workforce participation, as Goldin also noted the impact of declining fertility on women’s ability to engage in the labor market.

    Reshaping the environment, as proposed by Claudia Goldin

    • Workplace Restructuring: Reducing the reliance on extreme efforts and creating roles that allow for a better work-life balance, particularly for women.
    • Moderating Work Hours: Promoting reasonable work hours to improve work-life equilibrium, avoiding productivity issues associated with excessively long hours.
    • Ensuring Predictable Schedules: Establishing stable work schedules to facilitate family planning and reduce stress, thus promoting gender equity.
    • Supportive Institutions: Reforms in education and urban planning to ease parental responsibilities and reduce commuting times, enabling both men and women to better balance their professional and personal lives.

    Conclusion

    • To ensure the continued progress of gender convergence in labor market outcomes, we must heed her call for workplace reform and the development of supportive institutions. By doing so, we can pave the way for a more equitable and balanced future for both men and women in the workforce.

  • Counting rural women’s labour

    What’s the news?

    • In a concerning revelation, India grapples with one of the world’s lowest female labor force participation rates, while rural women face widening gender wage gaps and continue to make substantial, often unpaid, contributions to the economy.

    Central idea

    • As the International Day of Rural Women approaches, it is essential to shed light on the grim reality that India is grappling with. India not only records one of the lowest female labor force participation rates (LFPR) globally, but also ranks lower than most South Asian nations, trailing only Afghanistan and Pakistan.

    Rural Women’s Employment Landscape

    • India has one of the lowest female LFPRs globally. The LFPR for women in the working-age group (15–59 years) is just 35.6 percent, and this figure varies significantly between rural and urban areas.
    • In rural regions, the LFPR is comparatively higher at 39.3 percent, while in urban areas, it is much lower at 26.5 percent, according to the Periodic Labour Force Survey (PLFS) data for 2021–22.
    • Self-Employment and Agriculture:
    • A significant portion of rural women in India are engaged in self-employment, particularly in agriculture and allied activities.
    • Nearly three-fourths of rural working women are involved in these sectors, which include crop cultivation, livestock rearing, and related tasks.
    • Agriculture remains a crucial source of livelihood for many rural women.

    Gender Wage Gap in Rural India

    • Higher Gender Wage Gap in Rural Areas: Rural women working as regular and casual wage laborers face a more pronounced gender wage gap compared to their urban counterparts. This wage disparity is particularly significant in the rural employment sector.
    • Self-Employed Women’s Earnings: Self-employed rural women, particularly those engaged in agriculture and related activities, earn significantly less than self-employed men in similar roles. The self-employed rural women earn less than half of what self-employed men earn, indicating a substantial gender earning gap.
    • Worsening of the Gender Wage Gap: The gender wage gap for self-employed women has deteriorated from 2017 to 2021. This means that the income divide between rural men and women is widening over time.

    Unpaid and underpaid labor

    • Unpaid Domestic Chores: A significant portion of rural women’s work involves unpaid domestic chores. While there has been a decline in the proportion of women engaged in these chores from 60 percent in 2017–18 to 46 percent in 2021–22, one-third of rural women will still remain involved in unpaid domestic chores in 2021–22.
    • Time Allocation: The Time Use Survey conducted in 2019 reveals that, on average, rural women spend over five hours daily in unpaid domestic services and more than two hours in unpaid caregiving services. This is substantially more than the time men spend on these activities, highlighting the unequal distribution of domestic and caregiving responsibilities.
    • Contribution to Agriculture: Rural women also make substantial unpaid contributions to agriculture. They spend over seven hours daily growing crops for both household use and the market in 2019, which is a critical but unpaid aspect of their work.

    Land Ownership Disparity

    • Women face a substantial gender disparity in land ownership in rural areas.
    • The agriculture census of 2015–16 revealed that only 14.7 percent of operational landholdings were owned by women.
    • Moreover, women’s landownership is concentrated in the marginal and small holding categories.

    Government Initiatives in the Context of Rural Women’s Employment

    • MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): MGNREGA is a significant government initiative aimed at providing rural women with income-generating opportunities. It guarantees 100 days of wage employment per year to rural households, helping increase the labor force participation of rural women.
    • PM-SYM (Pradhan Mantri Shram Yogi Maandhan): This scheme is designed to offer financial security to unorganized sector workers, including rural women. It encourages them to save for retirement by providing a pension after the age of 60, thereby ensuring economic well-being in their later years.
    • PMJDY (Pradhan Mantri Jan Dhan Yojana): PMJDY promotes financial inclusion among rural women by encouraging them to open bank accounts. This initiative allows women to save money, receive government benefits directly, and access credit facilities for income-generating activities.
    • PMKVY (Pradhan Mantri Kaushal Vikas Yojana): PMKVY focuses on skill development for rural youth, including women, to enhance employability. It offers training programs in various sectors to equip them with the necessary skills for job opportunities.
    • Beti Bachao, Beti Padhao: This campaign encourages the education and welfare of girls in rural areas, indirectly empowering rural women by reducing gender disparities and promoting education among girls.
    • National Rural Livelihood Mission (NRLM): NRLM aims to reduce poverty among rural women by promoting self-employment and entrepreneurship. It provides training, financial support, and market access, empowering women to start and run their own businesses.
    • Support for Training and Employment Programs for Women (STEP): STEP is another initiative focused on skill development and employment for disadvantaged women in rural areas. It offers training in various trades to enhance their employability.

    Addressing the issue of unpaid labor in rural India requires a multi-faceted approach

    • Recognition: There is a need to recognize and value the significant contributions of rural women to unpaid domestic chores and agriculture. Acknowledging this work is crucial for appreciating its economic and societal importance.
    • Gender Equity: Promoting gender equity in domestic and caregiving responsibilities is essential to reducing the burden on rural women. Encouraging men to share these responsibilities can free up women’s time for productive activities.
    • Economic Empowerment: Empowering rural women through education, skill development, and access to income-generating opportunities can help them transition from unpaid to paid work, improving their economic status.
    • Policy Support: Government policies should be designed to address the gender disparities in unpaid labor and provide support mechanisms, such as access to affordable childcare and elderly care facilities, to reduce the time spent on unpaid caregiving.

    Conclusion

    • The contributions of rural women in India, whether unpaid, unaccounted, or underpaid, are the backbone of the country’s rural economy. Only by acknowledging the hidden work of rural women and bridging the gender gap in land ownership and access to support schemes can we truly empower the rural women of India and pave the way for a more equitable future.

    Also read:

    Women and India’s Labour force: Bridging the Gap