First-ever State government initiative targets labour market participation
The Assam government has released an employment policy aimed at the State’s inclusive, gainful and equitable participation in the labour market. Drawn up for the first time, the policy is a venture brought to fruition by KK Mittal, Principal Secretary, Labour and Employment. “The bottom line is not limited to access to employment or work but adequate income generation so that the quality of life of the incumbent is improved in a sustainable manner,” he said, describing the policy.
Based on the national guidelines for delineating labour policies, the document contains intensive analysis of National Sample Survey Organisation (NSSO) data, collected in the 50th, 55th and 61st rounds, to depict temporal trends in employment in varying contexts of GDP growth. The analysis indicates that about 89% of employment in Assam is in the unorganised sector. In rural areas, about 74% of the workforce is in the primary sector, though, interestingly, the tertiary sector employment in rural areas has increased from 17% (1993-94) to 23% (2004-05). In the urban sector, the predominance of the tertiary sector is manifested by 84% employment in the sector. Between 1993-94 and 2004-05, both the labour force participation rate and the workers population ratio in Assam increased, as it did at the national level too. Occupational mobility in Assam is so low as to be virtually stagnant. Very few people have changed their establishment, status, industry or occupation (as shown by 2004-05 data, considering the two previous years). However, the overall socio-economic condition of the State has improved over the past decade, especially the past five years. The economic environment is conducive to generating confidence for investment in industries and infrastructure. This will positively impact the employment trends in the State.
Analysis of the link of employment to GDP has also been done to identify potential sectors for growth of employment. “The State will have different options for guiding its labour market,” said Mittal, referring to the analysis of three varying scenarios with differential growth rates of 5.5% (baseline), 8% and 10%. “The analysis depicts that Assam will achieve full employment by 2015 if the labour force increases at the rate of 1.5% and the economy is growing at the rate of 10%.
The report also presents a significant M&E (Monitoring and Evaluation) model for capturing concurrent labour market data, which will add the authenticity of the State-level database, lack of which was felt by Siladitya Chowdhury, DDG, NSSO, who was involved in the analysis of the NSSO data. According to Chowdhury, “The improved quality of data will provide a clearer picture of employment vis-a-vis GDP growth in specific sectors which will be critical for guiding the labour market.”
The policy document has a comprehensive section elucidating the potential and growth dynamics of different sectors. Every sector of the economy has been discussed in detail, indicating projected growth, factors influencing growth and the potential for generating gainful employment. As a precursor to planning for employment, this section narrates the macro and micro economic policies, sectoral policies and labour market policies that will guide the labour market. Components of social security of the labour force, equity and inclusiveness have been discussed. Welfare services provided through government schemes are included.
The policy also documents the employment generation schemes of various government departments. “The government is implementing poverty alleviation programmes and also schemes for development of certain sectors such as dairies or animal husbandry. In both cases, substantial employment is generated and huge resources have been dedicated,” said Somnath Basu of UNICEF, who was also involved in the preparation of the document. The initiatives for employment generation schemes by various government departments indicate a colossal effort to generate inclusive employment in tandem with substantial improvement in the quality of life. Thus, the report also discusses the need for convergence and a single monitoring platform to optimize resource utilization.
