LABOUR AND EMPLOYMENT

Transcription

1 CHAPTER 19 LABOUR AND EMPLOYMENT Foundation of any economy is its labourers and redressal of their grievances is essential for ensuring a decent livelihood to them, social harmony, industrial prosperity and the growth of the economy. Kerala is generally known as a labour-friendly State. There is genuine concern and commitment to the protection of the interests of labour and promotion of its welfare. However, some still continue to hold the view that labour in Kerala is an irritant factor posing a constraint on investment. But this view is totally baseless since it is based on clear class bias and misinformation. This is well proved by the data on industrial peace and the spurt in investment in the industry sector in the state As per 2001 Population Census, the State s population was 3.18 crore and 63.4 per cent of the population was in the age group of who constitute the labour force. Projected labour force for 2011 is lakh. Out of India s total main workers, 2.6 per cent are Keralites. Kerala has lakh workers (main and marginal) of whom lakh are agricultural labourers and 3.65 lakh in household industries. Net out-migration of labour to other parts of India and abroad and the resulting inflow of remittances into the state is an outstanding phenomenon. Some studies by researchers at the Centre for Development Studies. Thiruvananthapuram and IIM, Kozhikode have put the amount of remittances from the Gulf region alone as high as 22% of the state s NDP. Composition of Workers 19.3 Composition of workers implies the amount of labour force engaged in different sectors of the economy. The labour community in Kerala mainly consists of those who are engaged in the informal sector (loading & unloading, casual work, construction work, brick making, self employment etc), traditional industries (coir, cashew, handloom, beedi etc), manufacturing sector (small, medium and large industries), IT industry, units in export promotion zones and those who are seasonally employed. The work participation rate (WPR) for men and women as per 2001 Census was and respectively. Also mention is to be made about child and migrant labour. Child Labour 19.4 One social hazard, contributed by present day life is child labour. During the last five years much involvement in rehabilitation and other programmes have been made to eradicate child labour. Child labour in homes, hotels are banned with effect from 10 th Oct Violators will be charged a fine up to Rs and an imprisonment of 2 year term. Children below age of 14 years are banned from working as domestic servants or at hotels, tea shops, restaurants and resorts. Children working in lower - end restaurants and high way food stalls and motor workshops are however a common sight in many parts of the country. Migrant Labour 19.5 Another social hazard is migrant labour. During the last five years much has been done in improving the life situation, education, health etc of the migrant workers. Migrant workers, seeking employment in Kerala from other states like West Bengal, Bihar, Orissa, Chandigarh apart from the workers already present in this State from Tamil Nadu, are increasing. These workers, many of them being contract labour, are exploited by paying them wages at minimum or

2 505 below subsistence level and forcing them to work under shabby conditions at work place. At the same time the women workers recruited from Kerala for working in the fish processing centers in the North Indian States particularly in Gujarat and Maharashtra are also being exposed to miserable conditions at their work place. The contract system of employment is also increasing in our State. But as against the migrant workers, the local workers are well organised and succeed in getting decent wages and working conditions. Awareness programmes are being conducted by the State for the migrant workers. The relatively higher wages and the general atmosphere of better respect, status and protection given to labour in Kerala as compared to that in their home states have attracted migrant labour to the state. Further, the reluctance of Kerala workers to take up certain types of work has created demand for migrant labour to fill the gaps. Industrial Relations 19.6 The labour department is a statutory agency to bring about and keep up harmonious relations in industrial establishments. For the maintenance of harmonius relations and creation of a conducive climate for sustained investments, effective enforcement of labour laws and labour welfare schemes is a prerequisite. The Labour Commissionerate provides this required support to the state government in framing appropriate labour and industrial relation policies, programmes of timely state interventions in the labour sector, updating labour laws and expediting their implementation to the satisfaction of both workers and employers. There are 30 labour laws administered by the Labour Department. 75 categories of employments have also been covered by the Minimum Wages Act Generally, industrial relations in the state in 2007 has been peaceful. However, the working class has come forward to register protests against the anti-labour policies of the GOI, but they need not be counted as real industrial disputes between labour and employers on terms and conditions of employment. Details on strikes, lockouts and layoffs for the last 6 years are given in the following Tables: Table 19.1 Strikes (Numbers) Items Up to Pending Arose Total Man-day lost * * Source: Labour Commissionerate Table 19.2 Lockouts Items (Numbers) Up to Pending Arose Total Man-day lost Source: Labour Commissionerate

3 506 Table 19.3 Layoffs Items (Numbers) Up to Pending Arose Total Man-day lost Source: Labour Commissionerate Conciliation Machinery 19.8 One of the prime functions of Labour Department is to act effectively as conciliation machinery to redress the grievances of employers and employees. This arrangement is now available in all 14 district head quarters. Three Regional Joint Labour Commissionerates and the Commissionerate provide good support to the conciliation process. The conciliation officer is vested with the power to intervene in industrial disputes, existing or even apprehended with a view to bring about amicable settlements. Labour Courts and Tribunals 19.9 The adjudication process has become time-consuming and burdensome. The Labour Courts and Tribunals are over-burdened with very large number of cases. On an average, it takes about 3 to 5 years for getting a judgment or an award. Arbitration Between adjudication and arbitration, the latter is considered to be more effective for the reasons that the procedures are simple, the proceedings will not be tardy, and the decision is rendered by a person in whom both parties have confidence. In the report of the National Labour Commission (2002), it is stated that, We would like the system of arbitration to spread and over time, become the accepted mode of determining disputes which are not settled by the parties themselves. Industrial Relations Committees (IRCs) The IRCs functioning in the state as Joint Consultative bodies have been considered by the First and the Second National Commissions on Labour as outstanding contribution of Kerala to the country. The origin of the IRCs goes to the one started in the Coir Industry in the early 1940s based on the GEORGE Committee Report (Report of the Board of Conciliation of Trade Disputes in the Mats and Matting Industry,1939, Government of Travancore) and modelled on the Whitley Councils in Great Britain. Since then the idea of IRC has deeply rooted in Kerala. There are now about 14 such IRCs to prevent or resolve disputes in the traditional sector including plantations. These were very active and result-oriented during the initial stage. The Plantation Labour Committee is considered as a model Committee, One unique feature of the IRCs in the state has been the formulation of mutually and amicably agreed formulae to settle industrial disputes on issues like Bonus. Kerala also has the record of a settlement of minimum bonus, irrespective of profit or loss, in the Plantations industry, as early as Even the idea of

4 507 minimum bonus became accepted in India only after the Bonus Commission suggested it in the late 1970s and the Bonus Act was passed. Safety of Workers The Department of Factories & Boilers is the Statutory Authority to ensure safety, health and welfare of factory workers and the general public living in the vicinity of factories through implementing various laws. Inspection of major accident hazard (MAH) factories, air monitoring studies in hazardous factories, workshop/training programmes for workers and managers, medical examination of factory workers are the major activities of the department. The department is in the pursuit of prevention of industrial accidents and creation of an environment conductive to industrial hygiene as well as prevention of occupational diseases by inspection and advisory service. The department has neither any externally aided activities nor any schemes to be implemented under Local Self Government s Plan There are establishments in the year 2007 which came under Factories and Boilers Act as against in 2006, indicating a decrease to the extent of 135. Details are given in the following Table: Table 19.4 Establishments and workers coming under the purview of various Acts enforced by Factories and Boilers Department (Numbers) Year Establishment Workers (revised) (up to ) Source: Factories and Boilers Dept There is a sharp decline in various programmes conducted by Factories and Boilers Department in A total of only 311 programmes so far conducted in 2007 as against 740 in More details are furnished in the following Table: Table 19.5 Programmes conducted by Factories and Boilers Department (Numbers) Sl.No. Programmes up to Priority inspection at MAH factories Air monitoring studies in hazardous factories Workshop/training programmes for workers/managers Inspection at hazardous factories by specialist inspectors Medical examination of factory workers Total Source: Factories and Boilers Dept

5 508 Kerala Institute of Labour and Employment The Kerala Institute of Labour and Employment, an autonomous body constituted by the Government of Kerala for the purpose of training and research in Labour and Employment, started functioning on as a registered society under Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act The institute is performing a prominent role in promoting programmes relating to labour and employment. KILE is conducting training programmes, workshops and seminars on labour related subjects, and training to the departmental officers and other stake holders of industry The Institute had conducted training program on Right to Information Act 2005 and on Building Functional Competence during Total number of participants and number of programmes conducted by Kerala Institute of Labour and Employment during 2007 is given in the following Table: Table 19.6 Programmes conducted by Kerala Institute of Labour and Employment during 2007 Sl. No Programmes Numbers Participants 1 Training Programmes 6 2 Workshop 1 3 Seminars Talks/Other programmes 1 Total 8 Source: KILE Social Protection Measures From ancient times till recent years, the Indian society had a traditional care system where the members were taken care of by their families, kin, castes and community. Now this system has virtually disintegrated with the emergence of nuclear family, urbanization, modern education, migration and transformation of the world in to a global village by the dynamic forces of globalisation. The major and tragic outcome of this is the ever-growing insensitivity of people to fellow creatures The Directive Principles of State Policy in the Indian Constitution, among other things, expressly entrust the State to make provision for securing the right to work, to education and to public assistance in case of unemployment, old age, sickness and disablement (Article 38), just conditions of work and maternity benefit (Article 42), and, social security, social insurance and unemployment relief (Article 83). However, after launching the package of New Economic Reforms consisting of Liberalisation, Privatisation and Globalisation (LPG), the Government of India has started relinquishing its constitutional obligations making a mockery of the Directive principles of State Policy. This is done under the pressure of Global as well as national Corporate Capitalism There is nothing wrong in viewing the society as consisting of two basic classes, namely, Labour and Capital. The process of globalisation has been very rapid with Capital and Commodities and Services, including their markets. The process has been very selective in the case of Technology and Information. However, Labour has been victimised by the process of globalisation. Capital has been globalised, but labour is yet to be globalised. Capital can freely

6 509 move about, but labour cannot. The WTO is insisting on social clauses and labour standards to be linked with trade in goods. There is an open conflict between the IMF, World Bank and the WTO on the one side and the ILO on the other The composition of the working class and the nature of the proletariat have undergone big changes on account of causualisation, tertiarisation, feminisation, and, informalisation. The strength of blue-collar workers is declining and that of knowledge workers is increasing. Parttime and temporary workers are engaged in low paying jobs. Trade unions are losing their leverage and control over members. Union membership is declining fast. In certain sectors with rising wages, workers do not identify themselves as belonging to the class of the proletariat. The material living standards and life styles of workers have dramatically improved. Central Government and some state governments have shown enthusiasm in implementing globalising policy shifts, privatisation, deregulation, decontrol, restructuring, de-indexing wage growth, cutting back or closing down public sector, downsizing and then calling it right-sizing to justify it, scrapping social protection measures and framing new labour laws for ensuring labour market flexibility to please Capital. Governments and nation states are, voluntarily or under pressure, giving up discretionary and regulatory prerogatives amounting to virtual surrender to global capitalism. In this context, Kerala has taken a different stand as it has always been a pro-labour one Today, workers and their trade unions in India are under attack. It takes the following forms: escalating unemployment, casualization, informalization, wage and staff cuts, destruction of entire industries, declining health and safety standards, union busting and quite often, the co-option of union leaders, erosion of basic labour rights, militancy from aggressive employers, imposition of unfair labour practices, loss of social protection and safety nets, etc. Labour is thus far perhaps the major loser from the on-going capitalist globalism and its progress in coping with it has been limited and slow JEAN DREZE and AMARTYA SEN have said: The chiefest enemy that the majority of humanity face is the almost total absence of security in their fragile and precarious existence The lives of billions of people are not merely nasty, brutish and short, they are full of uncertain horrors. An epidemic can decimate a nation. Unemployment can plunge masses in to extreme deprivation and insecurity in general plagues a large part of mankind with savage persistence. It is this general fragility on top of chronic and unpredictable deprivations that makes the need for social security so strong and palpable [ Public Action for Social Security: Foundations and Strategy.] The ILO is very much concerned with blatant violation of labour rights. It has taken up the issue of countering Social Exclusion, Global Deficit of Decent Work and fast vanishing Social Policy resulting from the sad demise of Nation State. The ILO Conventions provide for social protection for Labour. Most comprehensive is the Convention No.102 of 1952 on medical care, sickness, unemployment, old age, employment injury, family maternity, invalidity and survivor s benefits. India had committed to respect this Convention, but with the launching of Economic Reforms, it has virtually withdrawn this commitment In India s work force, the organised sector covers only 28 million persons. They enjoy some limited social protection under labour laws. But these laws are being amended or scrapped as demanded by the country s monopoly capital. The unorganised sector employs around 362 million persons. This sector is characterised by absence of any labour law, seasonal, temporary and erratic employment, high mobility, dispersed activity, low wages and subjected to severe and inhuman exploitation in the absence of trade unions.

7 The 90 th Conference of the ILO held in June 3-20, 2002 registered its protest and condemned the emerging global economic order which is creating filthy inequality, deeper poverty, and, social exclusion. The International Institute of Labour Studies (IILS) in 2000 had focused on Social Policy, Social Justice and Decent Work. It drew attention to three critical shortfalls emerging from globalisation. They are in the field of opportunities being created for productive work, not only work, but of work that is considered decent by ordinary people and Social Protection PADMANABHA GOPINATH, Director of IILS in his Preface to the ILO Social Policy Lecture Social Justice in the Global Economy delivered by PRANAB BARDHAN at the University of Western Cape, South Africa during September 6-9, 2000 said: Globalisation has generated new economic opportunities and prosperity At the same time it has seen an increase in inequalities. Unemployment and underemployment are growing in magnitude, polarising societies and disrupting the lives of individuals and families. Employment grows increasingly precarious. These trends threaten social cohesion and undermine the foundation of the world of work. There is today a global deficit of decent work. Unless this gap is filled, there will be deepening misery and insecurity ILO s Socio-Economic Security Survey (SES) covering in 15 countries and in 11 countries conducted as a People s Survey (2002) identified seven forms of labour related insecurities in the areas of Income, Labour Market, Employment, Work, Skills, Job, and, Voice Representation. Some instances of such insecurities are mentioned here: Non-payment or delayed payment of wages, unauthorised deductions, denial of statutory benefits, conversion of full time jobs in to part-time, permanent job to casual job, skilled job in to semiskilled and then to unskilled so as to reduce wages, contracting out and outsourcing work, informalisation, lack of protection on occupational hazards, injury and accidents at workplace, harassment at workplace, raising workload and working hours, encouraging trade union busting. The Survey has prepared score values and classified countries as Pace Setters, Pragmatists, Conventionals and Much-to-be done groups. It is found that India came under the last category India s Economic Reforms contains among other things a component on Labour Law Reform. This is reflected in the Report of the Second National Commission on Labour (2002) headed by Ravindra Varma. The leaders of monopoly capital in the country has been forcibly demanding flexible labour laws so that they can continue with their indulgence in labour market abuses with out fear of law. According to them, flexibility means right of managements to adjust their labour force from time to time according to their whims and fancies in the name of changing needs of the industry or to meet the exigencies caused by genuine economic reasons or in the best interest of the undertaking etc. Indian industry and monopoly capital now want to shift their failure in facing global competition to the shoulders of workers and trade unions. They also accuse Indian labour laws as a serious stumbling block in the creation of more employment and closure of units. The Second National Commission on Labour has recommended, among other things, such retrograde steps like removal of protection of 48 hour work week, legitimisation of contract labour and leaving out Unfair Labour Practices from the statute books Kerala has established a network of social protection measures not only covering labour but also other sections of society which needed them Here we discuss only measures directed at labour. The measures directed at other sections are covered under the chapter on Social Security and Welfare.

8 Labour being a concurrent subject, both the Central and State Governments have enacted several laws on social protection measures for labour. Kerala has good track record in the field of social protection measures, particularly the ones directed at the working class. Eradication of child labour, awareness programme on iterstate migrant workers, survey of interstate migrant workers and unorganised daily waged employees, distress relief fund are few important measures taken up recently. The most important statutory measures undertaken in Kerala for industrial workers are ESI, EPF, gratuity, maternity benefit, workmen compensation and special protection for women, children and old. Employees State Insurance Scheme This is the most comprehensive welfare measure directly administered by the Central Government through the ESI Corporation. Workmen s Compensation Scheme The Labour Department is administering this scheme more or less satisfactorily except for the delay in taking decisions in some complicated cases. The following Table pertaining to details of industrial accidents from 2002 to 2007: Table 19.7 Industrial Accidents (Numbers) Year Accident Fatal Non-fatal Up to Source: Labour Commissionerate The Factories and Boilers Department coming under the Labour Department ensure safety, health and welfare of factory workers and the general public living in the vicinity of factories. The number of fatal accidents is very low in the State. But, the frequency of non-fatal accidents reported needs the attention of the officers in charge of safety measures in the various establishments. There is no co-ordination between the Department of Labour and the Directorate of Factories & Boilers in handling accidents cases and monitoring the relief and compensation given to the victims. The same can be said about the incidence of occupational diseases and the care support given to the affected employees The Factories Act stipulates that all cases of occupational diseases detected by general medical practitioners should be reported to the Chief Inspector of Factories. It also provides for periodic medical examination of workers especially in hazardous industries.

9 512 Labour Welfare Funds At present, there are 14 Welfare Fund Boards functioning in the State under Labour Department to provide welfare amenities to the concerned sector of labour. There are 18 welfare schemes implemented by the Labour Department in They are Kerala Beedi & Cigar Worker s Welfare Scheme, Kerala Handloom Worker s Welfare Scheme, Kerala Agricultural Worker s Welfare Scheme, Kerala Bamboo, Kattuvalli, Thazha Worker s Welfare Scheme, Kerala Head Load Worker s Welfare Scheme, Kerala Motor transport Worker s Welfare Scheme, Kerala Auto rickshaw Worker s Welfare Scheme, Kerala Automobile Worker s Welfare Scheme, Kerala Cashew Worker s Relief & Welfare Scheme, Kerala Labour Welfare Scheme, Kerala Artisans & Skilled Worker s Benefit Scheme, Kerala Laundry Worker s Welfare Scheme, Kerala Barber & Beautician Worker s Welfare Scheme, Kerala Toddy Worker s Welfare Scheme, Kerala Abkari Worker s Welfare Scheme, Kerala Tailoring Worker s Welfare Scheme, The Building & Other Construction Worker s Welfare Scheme, Kerala Shops & Establishment Workers Welfare Scheme. In majority of welfare funds there is government contribution Among the schemes the Kerala Head Load Workers Welfare Fund Scheme appears to be unique since the Head Load Workers Welfare Board has the status of a deemed employer. The Kerala Building and Other Construction Workers Welfare Board is also distinct as its functioning is regulated by a central statute viz, the Building and Other Construction Workers Act Under this Act, a Welfare Fund Cess is levied on construction works. The range of benefits granted to the registered members of these Welfare Funds/ Schemes include pension, PF,gratuity, medical benefits, educational scholarships to children of workers, grant for marriage of daughters, maternity benefits etc. UNEMPLOYMENT Today the problem of unemployment is the single largest puzzle of Kerala economy. Unemployment is said to prevail when supply of labour exceeds its demand. That is unemployment exist, if all able bodied men are not able to work at the existing wage rate. Growth of supply of labour is determined by population growth and participation of population on the total workforce. In Kerala from the decade of 1970 s onwards there has been a rapid rise in the labour supply because an increasing number of women seeking wage employment has been rising. Thus though the supply of work seekers increased, the demand for them did not increase. As a consequence there was an alarming increase in unemployment rate from time to time The unemployment problem in Kerala is not only about educational unemployment but also simple unemployment of semi skilled and unskilled workers. This is the highest in the country and on the rise, too. One important feature of Kerala Economy, which makes it different from the rest of the country, is net out migration of labour force particularly to Gulf region and inflow of huge remittances into the State. Huge out migration, as has been rightly pointed out, happens mainly because of lack of employment opportunity The worsening unemployment situation is obviously related to the inability of the economy of the State to generate any fresh employment during the last decade. While this phenomenon of Jobless Growth is observable in all the States in the country, the situation in Kerala appears to be particularly distressing because most of the labour intensive/labour absorbing traditional industries depending on exports, are facing a survival crisis in the liberalised trade environment It is clear that the problem of unemployment is not just one of unemployment among the educated youth, unemployment and under employment among workers in traditional sectors like

10 513 agriculture and household industries are indeed major concerns. One of the most important groups of such workers is the traditional agricultural workers. According to the 2001 Census, the number of agricultural workers in Kerala was around lakh and this is more than twice the number of cultivators (7.20 lakh) and more than four times the number in the household industry (3.70 lakh). Close to three- fourth of workers in the household industry is in rural areas and nearly half of them are female workers. Both rural and urban female unemployment rate increased dramatically during the last five years Now let us look at the data provided by the Employment Exchanges in the state. All categories of employment seekers above the age of 14 are allowed to register in the Employment Exchanges lakh of employment seekers are there in the Live Register of Employment Exchanges as on , of which lakh are females. Details are given in the following table: Table 19.8 Registered job seekers in Employment Exchanges (Aug 2007) Sl. No. Category Numbers 1 Illiterate Below Matric Matric Pre-degree Graduates a. Doctors b. Engineers c. Others 6 Post Graduates Total Source: Employment Directorate The Employment Department operates about 96 institutions and they provide placement service, vocational guidance, employment market information, self-employment guidance, unemployment assistance and self-employment schemes for the registered unemployed. But more and more educated and skilled unemployed people are added to the stream everyday so that these services have been considered inadequate to tackle the problem of unemployment in the State. Also most of the unemployed do not possess marketable skills and this reduces their employability. A temporary relief to the problem of growing unemployment can only be sorted by providing speedy and accurate list of qualified persons to the prospective employers. This would call for convergent action by the Employment Department and Industrial Training Department. Work force in Public & Private Sector Total number of work force in different sectors of the economy as on March 2007 amounts to Out of this (54.36 %) was in public and the remaining

11 514 (45.64%) was in private sector. In public sector, largest number was engaged in community, social and personal services sector (53.70%), second in manufacturing sector (8.74%) and least in mining and quarrying (0.42 %) while in public sector largest number engaged in manufacturing sector (37.87%), second in community, social and personal services (37.51%) and least in mining and quarrying (0.09 %). The details of the work force in different sectors under public and private sectors are furnished below: Sl. No. 1 Table 19.9 Work force in public and private sector (March 2007) (Numbers) Sector Public Sector Private Sector Estt Women Total Estt Women Total Agriculture, Forestry and Fishing Mining and Quarrying Manufacturing Electricity, Gas and Water Construction Wholesale & Retail Trade, Hostels and Restaurants 7 Transport, Storage and Communication Financing, Insurance, Real Estate and Business Services Community, Social and Personal Services Total Source: Employment Directorate NOTE: As on 2007, persons were employed in the public sector as against just in the private sector showing that in Kerala public sector continues to be the largest employment provider As on December 2004, the number of employment seekers in the live register of employment exchanges in India was 405 lakh. This number decreased to 394 lakh in December 2005 and increased to 407 lakhs in June Of the total of 407 lakh job seekers, 294 are men and 113 are women. BOX 19.1 In India as on 30th June 2006 maximum number of jobseekers (74.6 lakh) awaiting employment were in West Bengal while minimum (0.06 lakh) were in Dadra and Nagar Haveli Ministry of Labour and Employment Annual Report

12 According to the live register of employment exchanges, the total number of work seekers in 2005 was 36.7 lakhs. This number increased to 38.6 lakhs in 2006 registering an increase of 5.2 per cent. The total number in September 2007 is 40.5 lakhs of which 38.9 lakhs are general work seekers and 1.6 lakhs professional / technical work seekers. Details of work seekers from 1999 to 2007 is given in Appendix The number of work seekers below SSLC increased from 6.29 lakhs in 2005 to 6.40 lakhs in 2006 and again to 6.45 lakhs in September The total number of work seekers who possess SSLC and above increased from lakhs in 2005 to lakhs in 2006 and to lakhs upto September The percentage of work seekers below SSLC to the total work seekers is decreasing since 1999 and the percentage of work seekers who possess SSLC and above is increasing (Table ). The trend of work seekers in Kerala since 2001 is shown below. (Fig.19.1). Fig: 19.1 Trends of Workseekers in Kerala Below SSLC SSLC and Above Percentage to Total Percentage to Total Year Year Table Number of Work Seekers in Kerala (in lakhs) Year (at the Below SSLC SSLC & above end of the Total Work December) Persons Percentage to Persons Percentage to Seekers Total Total September Source: Directorate of Employment

13 The number of work seekers with PDC or HSC increased from 5.75 lakh in 2005 to 6.17 lakh in 2006 and again to 6.57 lakh in September The number of graduates registered in employment exchanges stood at 2.30 lakhs in It increased to 2.33 lakhs in 2006 and again to 2.38 lakhs in September The number of job seekers with Postgraduate degree decreased from 0.55 lakh in 2005 to 0.54 lakh in 2006 and to 0.53 lakh in September Table Share of Employment Seekers according to level of Education Kerala (1996, 2001 and 2006) Sl. No Level of Education Share (Percent) Below SSLC SSLC PDC or HSC Degree Post Graduate Total Work Seekers Source: Directorate of Employment The share of work seekers in various levels of education is given in Table Of the total employment seekers in 2006, 16.5 percent are below SSLC, 60.1 percent SSLC, 16 percent PDC or equivalent, 6 percent graduates and 1.4 percent postgraduates. The distribution of work seekers according to level of education for the period from 1999 to 2007 is given in Appendix The number of professional and technical work seekers in 2005 was 1.77 lakhs. This number decreased to 1.64 lakhs in 2006 and again to 1.57 lakhs in September The share of employment seekers with various professional and technical qualifications is given in Table It is seen that more than 93 percent of the technical and professional employment seekers are ITI and Diploma holders in engineering. Table Share of Professional and Technical work seekers in Kerala Sl. No Educational Qualification Share (Percent) Medical Graduates Engineering Graduates Diploma holders in Engineering 4 ITI Certificate holders (NTC) Agricultural Graduates Veterinary Graduates Total Source: Directorate of Employment The job seekers with engineering degree increased from 6389 in 2005 to 8466 in 2006 and decreased to 7431 in September Engineering diploma holders who had registered their names in employment exchanges increased from in 2005 to in 2006 and again to

14 in September The ITI/ NTC Certificate holders seeking employment decreased from 1.24 lakhs in 2005 to 1.10 lakh in 2006 and again to 1.04 lakh in September The number of medical graduates who had registered their name in the employment exchanges decreased from 3428 in 2005 to 2925 in 2006 and again to 2418 in September The number of veterinary graduate work seekers has decreased from 547 in 2005 to 522 in 2006 and increased to 602 in September The number of job seeking agricultural graduates has decreased from 803 in 2005 to 762 in 2006 and again to 728 in September (Appendix 19.3) A peculiar feature of Kerala's unemployment situation is that women outnumber men seeking employment through employment exchanges. This position is reflected in all the 14 districts of Kerala. Out of the total number of lakh job seekers in March 2007, women number lakh (58%). The district-wise unemployment of women and men in 14 districts of Kerala as on is shown in following graph (Fig.19.2). Fig Workseekers in Kerala as on Lakh persons Thiruvananthapuram Kollam Pathanamthitta Alappuzha Kottayam Men Idukki Ernakulam Thrissur District Palakkade Malappuram Kozhikkode Women waynadu Kannur Kasargod Source: Directorate of Employment Thiruvananthapuram District ranks first in the number of work seekers in both general and professional categories. As on , the total number of work seekers in Thiruvananthapuram District is 5.53 lakh of which 3.38 lakh are women and 2.15 lakh are men. The second largest number of work seekers is from Kollam district. There are 4.04 lakh job seekers in Kollam District in March 2007, out of which 2.37 lakhs are women and 1.67 lakhs men. The lowest number of work seekers is in Wayanad preceded by Kasargod District. In Wayanad, there are 0.82 lakh work seekers, whereas in Kasargod the number is 0.98 lakhs in March Details of district wise distribution of work seekers is given in Appendix 19.4 Unemployment Allowance Scheme (UAS) Government of Kerala has introduced an unemployment assistance scheme in 1982 for the unemployment through the Department of National Employment Service. As per the Kerala Panchayat Raj & Municipalities Act 1994, the scheme of unemployment assistance was transferred to the local bodies and the powers for inviting applications for unemployment allowance, processing of applications after the scrutiny of employment officers, sanctioning and the distribution of unemployment allowance are vested with the local bodies. The amount of

15 518 unemployment allowance provided in the budget is allotted to the Employment Department and the department distributes the amount to local bodies as per their requirements. The annual family income of the applicant should not be above Rs. 12,000 (per annum) and personal income should not be above Rs. 100 per month. The candidates should have passed SSLC and possess three years registration seniority after attaining 18 years of age. The candidates belonging to SC/ST and PH should have appeared the SSLC examination through proper schools. The Physically Handicapped candidates need a registration seniority of two years after attaining 18 years of age. The upper age limit is 35 years. Students are not eligible for applying for unemployment scheme. There are beneficiaries in the State under the scheme. The monthly rate of unemployment allowance is Rs. 120 w.e.f During 2006 an amount of Rs lakhs was disbursed to 3.40 lakh persons and during 2007 Rs lakhs to 3.62 lakh persons. Kerala State Self Employment Scheme for Registered Unemployed (KESRU) Self-employment scheme called KESRU (Kerala State Self Employment Scheme for the Registered Unemployed) is being implemented since March All literates and registered unemployed candidates within the age group of 21 to 40, other than students are eligible to apply under the scheme if their annual family income is below Rs. 24,000 and individual income is below Rs. 500 per month. But those who are undergoing part time courses and courses of less than 6 months duration are exempted from the definition of student. The maximum loan amount admissible is Rs depending upon the requirement of the project. But four or five members can start joint ventures and they will be provided a maximum of Rs.5 lakhs. Twenty per cent of the loan amount is given as subsidy by the State Government. During 2006 an amount of Rs lakh was disbursed to 1040 persons and during 2007, Rs lakh to 2110 beneficiaries. (Appendix- 19.5) Multipurpose Job Clubs During the Annual Plan , the state government has started implementing a Flagship Scheme called Multipurpose Job Club exclusively meant for unemployed persons who are willing to take up employment by entering in to partnership with similar other persons by joining a multipurpose job club being organised by the Employment and Training Department. Those who join the club will get financial assistance in the form of loan from banks. The Department will act as a promoter bringing the banks and the work seekers together and the Department will also provide help to the work seekers with training and preparation of viable projects. All round enthusiasm has been reported from almost all districts in the state. Employment in the Organised Sector In India, the number of persons employed in the organised sector during 1994 was lakhs out of the total of lakh persons employed. In 2000, it increased to lakh persons constituting 7 per cent of the total 3970 lakh persons employed. In March 2004, the number of persons employed in the organised sector was lakh and it increased to lakh in March The details of organised sector employment are given in Appendix Employment of women in the organized sector (both public and private) as on March 2003 was lakhs constituting 18.4 per cent of the total organised sector employment in the country. Their number decreased to lakhs in March 2004 and increased to 50.2 lakhs in March 2005 (19% of the organised sector employment).

16 519 Box 19.2 Growth rate of employment is less than the growth rate of the labour force indicating an increase in the unemployment rate The organised public and private sector together employ lakh employees in Kerala, which constitute 4.3 per cent of the total employees in the organised sector in India in The private sector accounts for 46.3 percent of the employment in the organised sector in Kerala but this figure is 31.2 per cent for India. Details are given in Table Table Employment in Organised (Public & Private) Sector India & Kerala (Lakh persons) Share of Particulars India Kerala Kerala (Per Male Public Sector Female Total Male Private Sector Female Total Male Total Female Total Source: Directorate of Employment cent) The share of female employees in the organised sector in Kerala is about 40 per cent and for India it is 19 per cent. In the private sector, share of female workers is 50 per cent in Kerala but less than 25 per cent in India. A comparative situation of female employment in India and Kerala is shown through following graph Fig Fig: 19.3 Female Employment in the Organised Sector India Kerala Employees in Lakhs Employees in Lakhs Year Year Female Total Female Total

17 520 Table Share of female employees in the organized sector India & Kerala (2004) Percentage of Female Sl. Sector Employees No. India Kerala Public Sector Private Sector Total Source: Directorate of Employment In Kerala, the total employment in the organized sector, which had been increasing marginally since 1996, started declining from 2000 onwards. (Appendix 19.7) Total number of persons employed in the organized sector in December 1996 was lakh persons. The total number grew to lakh persons in December During 2005 total number of employees in the organized sector came down to lakh persons (4.30 lakh women & 6.72 lakh men) of which 6.10 lakh persons (4.23 lakh men and 1.87 lakh women) were in public sector and 4.92 lakh persons (2.49 lakh men & 2.43 lakh women) in private sector. It increased to lakh persons (4.36 lakh women & 6.75 lakh men) in December 2006 of which 6.07 lakh persons (1.86 lakh women and 4.21 lakh men) are in public sector and 5.04 lakh persons (2.50 lakh women & 2.54 lakh men) are in private sector. Of the total of 6.07 lakh employed in the public sector during December 2006, 0.77 lakh were Central Government employees, 2.77 lakh. State Government employees, 2.27 lakh Quasi Government employees and 0.26 lakh Local government employees. Details on public sector employment are given in Table Districtwise employment in public and private sectors in Kerala as on 31 st March of every year from 2003 to 2007 are included in the Appendix Fig.19.4 Employment in the Organized Sector-Kerala Lakh Persons Year Public Source: Directorate of Employment Private

18 521 Year (at the end of December) Source: Directorate of Employment Table Employment in Public Sector in Kerala Central Govt. State Govt. Quasi Govt Local Bodies Branch-wise analysis of the public sector employment data in Kerala revealed that Local Bodies registered highest negative growth of 2.8 per cent in 2006 followed by Quasi Government, State Government and Central Government recording a negative growth of 1.9 per cent, 0.8 per cent and 0.3 per cent respectively. The percentage distribution of employment in public sector is shown in following graph Fig.19.5 Fig.19.5 Distribution of Employment in Public Sector March 2007 Total Local Bodies 4% State Quasi Govt. 22% Central Govt 13% Central Quasi Govt 16% State Govt 45% Source: Directorate of Employment District-wise employment in public sector as on 31st March 2007 revealed that out of the total 6.04 lakh employees, 1.39 lakh belongs to Thiruvananthapuram district, of which 0.39 lakh are women. The lowest number of public sector employees is in Wayanad district, of which 2173 are women. Branch-wise and district-wise details of public sector employment in Kerala as on 31st March 2007 is given in Appendix 19.9.

19 The EMI data in Table gives the sector-wise distribution of employment over the last three decades in Kerala and the All India figures are given in Appendix Sl. No Table Employment in Public and Private Establishments in Kerala as on 31 st March Number of Persons Employed Industry Agriculture and allied Industries Mining and Quarrying Manufacturing Construction Electricity, Gas. Water & Sanitary Services Trade, Restaurants & Hotels Transport, Storage & Communication Financing, Insurance, Real Estate & Business Services 9 Community, Social & Personal Services Total Source: -Directorate of Employment and Training Analysis of the growth of employment in public and private establishments in Kerala in 2007 revealed that Mining and Quarrying registered highest decrease of 85.9 per cent followed by 22.7 per cent in Construction, 1.7 per cent in Community, Social and Personal Services, 1.6 per cent in agriculture and allied industries and 0.6 per cent in Transport, Storage & Communication. Among other Industry Divisions, Electricity, Gas, Water and Sanitary Services registered highest increase of 19.7 per cent followed by 16.3 per cent in Trade, Restaurants and Hotels, 14.6 per cent in Manufacturing and 5.7 per cent in Financing, Insurance, Real Estate and Business Services. Placement through Employment Exchanges In India there are 947 Employment Exchanges which include 82 University Employment Information and Guidance Bureau, 43 Special Employment Exchanges for Physically Handicapped, 15 Professional and Executive Employment Exchanges and one Special Employment Exchange for Plantation Labour. Year-wise registration, placement, vacancies notified, submission made and live Register for the period 2001 to 2006 are given in Table

20 523 Year (at the end of the year) Employment Exchanges Table Employment Exchange Details All India Registration Placement Vacancies Notified Submission Made (In Thousands) Live Register (Jan-June) Source: Ministry of Labour and Employment In Kerala total placement through Employment Exchanges had been declining from 2000 to Total placement in 2000 was It declined to 8711 in 2004 and increased to in In 2006 it declined to and again to 9158 in September The number of placements through employment exchanges and the average number of employers using employment exchanges are given in Appendix The placement through employment exchanges since 2000 is illustrated through following graph Fig Fig Placement through Employment Exchanges-Kerala Number of Persons Year Migration Emigration of Keralites remains strong, with a study conducted by CDS in 2004 showing that the number of emigrants went up by 35 percent in last five years from 13.6 lakhs in 1999 to 18.4 lakhs in According to the latest study by CDS, international migration has remained absolutely stationary during and it was 18.5 lakh in The number of return emigrants had been 8.9 lakh in 2003 and it was 8.9 lakh in 2007 also.