6.2. Demand supply mismatch in the labour market

Transcription

1 6.1 Introduction Chapter-6 Analysis of Labour demand Labour market analysis involves analysis of demand for labour. It has been argued that lack of industrial expansion (Kannan 1990, 1999: Mukherjee and Isaac 1994), change in the structure of demand (Eapen 1994) and declining importance of agricultural sector (Damayandhi 1995) are responsible for increased unemployment in Kerala. This highlights the importance of studying the structure and nature of labour demand. Labour market participation decision is taken as household decision. The household decision itself is related to the existing socioeconomic conditions. These factors should be identified while analysing labour market. This chapter gives disaggregated picture of labour demand of Kerala in and analyses the demand-supply mismatch existed in Kerala also compared it with all India. It also examines various issues highlighted by economists related to the labour market of Kerala such as government job preference, manual job reluctance, high wage agricultural jobs and labour shortage issue, etc. Gender difference, social difference, etc are also given due importance in the analysis Demand supply mismatch in the labour market Lack of quality jobs has been highlighted as a factor responsible for the high level unemployment in Kerala. Table: 6.1 show the level of educational status of the employed in Kerala and in India. In India 78.1 percent of the total employed have only an educational level of middle school and below where as in case of Kerala it is 68.4 percent. In India, 89.3 percent of female employees belonging to less educated category (middle school below) compared to 73.8 percent of male. In Kerala, female employees belongs to less educated category is 68.8 percent and for male it is 67.3 percent. It is interesting to note that among the employed male, 7.5 percent have graduation and above qualification in all

2 142 India compared to 6.35 percent in Kerala. The percent of employed females having graduation and above qualification is higher (10.7percent) than the male counter part. This may not be due to the lesser percent of highly qualified male in Kerala, but may be due to the migration of educated male members. Limited job opportunities within the state compel the graduate and above graduate male to migrate. Highly educated female section accepts jobs that do not require such higher qualifications resulting in high unemployment among average educated. Where as their male counterpart who have similar higher qualifications instead of taking up jobs available within the state requires only less educational qualifications, migrate and try to find good placements that meet their educational qualification. Table: 6.1 Level of education of employed in India and Kerala in the working age group, (Percent) Education Kerala India category Total Male Female Total Male Female Middle school & below secondary & HSS Diploma certificate Graduate Post graduate

3 143 Table: 6.2 Level of education of labour force in the working age group, (Percent) Kerala India Education category Total Male Female Total Male Female Middle school below & secondary & Higher secondary Diploma certificate Graduate Post graduate The educational status of persons in the labour force in the working age category shows that in Kerala 62.6 percent of the labour force has an education level of middle school and below (Table.6.2). It was earlier seen that (table 6.1) 68.4 percent of the employed belongs to this educational category. At all India level 76.9 percent of population in the labour force belongs to this educational category but the percent of employed in this education category is 78.1 percent. This shows that in the labour market, less educated persons demand is more compared to its supply. Or that the jobs which need lower levels of education are more than the proportion of labour force in that educational category. It is noticeable that in Kerala only 53.9 percent of female labour force belongs to the educational category of middle school below but the percent of employed having middle school below qualification is 67.3 percent. In the case of male it is 67 percent and 68.8 percent respectively. Tables 6.1 & 6.2 show that the proportion of employed female in Kerala having educational qualification of secondary and higher secondary level is 14.4 percent where as 21.7 percent of females in the labour force are having this educational level. The categories from above secondary onwards, the proportion available (supply) is less than the proportion absorbed (demand). This shows that

4 144 in the labour market there is an imbalance between the demand and supply of labourers. Demand for less educated is more than their supply, but in case of educated the supply is more. If an economy creates on low educational qualification requiring job opportunities it is the responsibility of the government to ensure higher economic benefit to those who are having higher levels of education through compensating deferential 1. Irrespective of the job status, higher educated will do the work efficiently if they are offered enough economic benefit. In Kerala both in the case of male and female, employment opportunities for less educated is more than the proportion in supply. There is shortage in creation of jobs requiring higher levels of education. At the same time there also exists increased job opportunities for less educated and lesser skilled. In-depth analysis of the demand for labour enable in making concrete conclusion on the labour market issues of Kerala. In between the analysis, the highlighted issues of labour market of Kerala, such as government job preference, and manual job reluctance etc. are included Analysis of Labour demand This section analyses the condition of labour demand in Kerala with comparison to all India. This will help in comparing how Kerala's development experience changed the demand conditions compared to all India. The distribution of employment within different social classes in Kerala and from the gender perspective is analysed Type of employment On the basis of its nature, employment can be classified one as selfemployed, regular salaried wage employed and casual labourers 2, and the other formal, informal and the third one, manual and non-manual. 1. Compensating differential is a term used in labour economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job. A compensating differential, which is also called a compensating wage differential or an equalizing difference, is defined as the additional amount of income that a given worker must be offered in order to motivate them to accept a given undesirable job, relative to other jobs that worker could perform (Kaufman, Bruce E., and Julie L. Hotchkiss (2005), and Rosen, Sherwin (1986.). 2. The definitions are given in Appendix.1.1

5 145 Table: 6.3 Category of workers (15-59 age groups), 2004 (Percent) Category of India Kerala workers Male Female Total Male Female Total Self-employed Regular salaried Casual labourers Table: 6.3 show the structure of labour demand. In India, 52.4 percent of total employed are self employed where as in Kerala, self employed constitute only 36.3 percent. Major share of Kerala s employed is in the form of casual wage labourers(41.1 percent). Similar finding are given in Mathew (1995). In India, casual labourers constitute only 31.1 percent of the total employed and regular salaried employment constitute only 18.5 percent. In Kerala, the percent of regular salaried and casual laboures are higher than that at all India level. There is evidence of difference in the employment structure of Kerala compared to India. In India majority are self employed where as in Kerala major share of employed are involved in casual work. Gender difference also exists with respect to the employment structure. Self employment constitutes the major employment category for women in Kerala while majority of the male are employed as casual labourers. In India, 18.5 percent of male belongs to the category of regular salaried while only 11.2 percent of female belong to this category. In Kerala the percentage of females in the category of regular salaried is very large (32.2 percent) compared to only 19.1 percent of males in the same category. In this context, a detailed analysis of the regular salaried job on the basis of income education, age, religion etc may throw light on the specific characteristics of the labour market in Kerala.

6 Regular salaried Job Statistical analysis of the employed category of female in Kerala between age group of is carried out for analysing its specific features. Appendix: table.4.3, model-8 shows the logistic model where Y=1 when the employee is doing a regular job and '0' otherwise. The odd values show that when income increases the probability to become a regular salaried employee also increases. It can also be interpreted that female having a regular salaried job lives in better conditions. Results show that female belonging to the fourth income quartile(richer group) have 85 percent more chance to be a regular employee than female from first income quartile(very poor). It is found that a female having an educational qualification of graduation and above have times more probability to become regular salaried employee than middle school below qualified women. A higher secondary qualified female has 7.14 times and secondary qualified 2.89 times, more chance to be a regular employee compared to less educated group. This indicates the significance of education in determining the type of employment. Higher the educational level, the chance of entering regular salaried job is also higher age category employees have a higher chance to become regular salaried employees. But compared to the other groups (30-39 and age categories) youth is having higher probability. This may be due to the fact that young women due to reproductive role are not able to do manual and laborious job and so prefer non-manual jobs 3. When regular non-manual jobs are not available, they remain unemployed (it is already found that the unemployment rate is very high among youth). Among the old age persons, those who are having regular salaried secured jobs are retained in job market, while the rest join the housewife category due to domestic work burden (As it is found that the probability to become a housewife increases when age increases) 3. It is found that 65.3 percent of regular salaried jobs are non -manual in nature but 54.4 percent of other types of jobs are manual jobs(source: computed from NSSO 61 st round unit level data.).

7 147 Never-married female have 74 percent and separated/divorce have 2.25 times, more probability to become regular salaried employee than currently married. This should be read in connection with the negligible proportion of separated/divorcee in government jobs. Religion wise analysis shows that females in Hindu community have 15 percent more chance to become regular employee than Muslims. With the increase in family size the probability to become regular salaried employee increases among female. Though, regular salaried jobs are considered to be the high quality jobs 4, it is also true that the salary and conditions of work are not the same among all types of jobs classified under regular salaried jobs Government job Appendix: Table.4.3 model-9 shows that female belonging to higher income category in Kerala are having very high chance to become government employees than lower income category. It is given that female from the highest income quartile class have 3.21 times more probability to be government employees than the first quartile category female and 85 percent more chance when compared to the second income quartile and only 2 percent more chance compared to the third quartile(appendix: table.4.3, model-9). It is already found from the earlier analysis that the probability of richer sections to be a part of labour force is very low. Moreover, the result shows that those who are employed among this group have a very high chance to become regular salaried employees. It can be concluded that richer sections are having higher chance to become government employees compared to the poorer section. On the other hand, it may also be interpreted that female working in government sector has more chance of being included in the higher income category. It is because of the qualitative attraction of the government job both economically and non-economically. The section of separated/divorced female level of economic participation is not included in the logistic model as there are negligible numbers of government 4. Sharma and Rajendra (2009)

8 148 employee in this category. The never married have 4 percent and widowed have 45 percent more probability to become a government employee than currently married. Age and the probability of getting government employment is seen to be positively related. This shows that when age increases, a gradual increase is visible in the probability of regular salaried employee to become a government employee. It is argued that people in Kerala state shows preference towards public sector/government jobs which is attributed to partly economic and partly historical reasons (Mathew 1995). Table.6.4 provides the mean value of monthly consumption expenditure of persons working in different enterprises. This shall through light on the standard of living of persons engaged in different enterprises. It is seen that public sector employees have higher levels of standard of living. This may be one of the reasons for high job preference shown for government sector jobs. Hence it can be argued that the labour supply is channelized to the jobs which can ensure a high level of standard of living. The government sector job preference shown is not merely a cultural issue, a decision taken as a rational human being likes to attain higher standard of living. Table: 6.4 Average monthly per capita consumption expenditure of employed in different enterprises in Kerala, Type of Enterprise Mean MPCE(Rs) Proprietary: male Proprietary: Female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others

9 149 Table: 6.5 Gender wise distribution of Government/public sector, regular salaried jobs in India and Kerala, (Percent) Regular salaried job Male Female India Kerala The educational status of female labour force is seen to be comparatively higher than male in Kerala. In the government sector, there lies meager possibility for gender discrimination. At all India level 80.5 percent of government jobs is carried out by male where as in Kerala only 58 percent of government jobs is done by male(table.6.5). Female get only 19.5 percent of government jobs in all India while in Kerala it is 42 percent 5. At all India level the educational status of female is less compared to male, where as in Kerala the educational status of female labour force is comparatively higher. It is a fact that in government jobs male and female are given equal importance and no discrimination exists. Still gender difference exists with regards to the attainment of government jobs. Though in Kerala, the difference seen are negligible compared to India, it necessitate further analysis in a demand deficient economy. Table 6.6 Share of male and female in Labour force and public sector jobs, among educational groups in Kerala, (Percent) Level of education Labour force Employed in public sector Male Female Male Female Middle school & below Secondary & HSS Diploma certificate Graduate Post graduate According to Kerala Economic Review, 2008, in Kerala Female percentage in public sector organized job is only and that of India it is only This may be due to the problem of reporting. Contract workers who are getting salary in a regular basis may be reporting as government employee, but official records they may not come.

10 150 Table 6.6 shows that the proportion of female in labour force with the educational status of middle school and below is only 28.9 percent. Where as, 44.2 percent of this educational category female are employed in the public sector. The female labour force having education status of secondary and higher secondary, is 36.2 percent and in public sector jobs their proportion of involvement is 39.3 percent. In the public sector even though the basic qualification for most of the jobs is higher secondary, post graduates get selected. Analysis of data shows that in public sector, educated women are seen trail behind their male counterparts. This is more evident from table 6.7 which shows that the percent of male in labour force with above graduation is only 49.6 where as 57.7 percent of this group is in public sector job. For female it is only 42.3 percent compared to their labour force participation share, 50.4 percent. Table: 6.7 Share of male and female in Labour force and public sector jobs, above graduation, (percent) Within labour force Employed in the public sector Male Female Male Female From the above analysis it can be argued that female members are having some kind of disadvantage to compete with male counterparts for higher qualified jobs, though they are educationally qualified. To avoid social discrimination and uplift the weaker sections of the society, reservation facilities have been provided to weaker/backward sections. So an analysis of the distribution of public sector jobs among different social groups is required.

11 Government job and Social Groups Table: 6.8 Social groups and public sector jobs with educational status in Kerala, (Percent) Educational category SC/ST OBC Others Middle school & below secondary & HHs Diploma certificate Graduate Post graduate Table 6.9 Social groups and share in labor force with educational status in Kerala, (Percent) Educational category SC/ST OBC Others Middle school & below secondary & HSS Diploma certificate Graduate Post graduate Education helps in fighting against all discrimination. Table: 6. 8 & 6.9 shows that within the middle school & below education category there is only 18.8 percent of SC/ST are in labour force whereas, among the public sector employees having the same educational status, 37.9 percent belongs to SC/ST. Among OBC the percent of labour force having middle school below is 60.5 whereas only 42 percent of OBC are observed in the public sector belongs to this education level. Among secondary and higher secondary education, SC/ST labour force is 9.3 percent while public sector absorbs only 8.4 percent from this category. Among OBC this percent is 53.2 and 46 respectively. In the general category 37.5 percent is getting 45.6 percent of public sector jobs with the same

12 152 qualification. Within diploma certificate holders, SC/ST contributes only 6.7 percent of labour force while their percent in public sector is 9.1. Among OBC it is 53.6 and 50.3 percent respectively. In the general category it is 39.6 and 40.6 percent. Among the graduate in the labour force 4.9 percent belongs to SC/ST but they have 9.2 percent of public sector jobs. Among OBC the percentages are 52.4 and 50.7 respectively and in the general category this is 42.6 and 40.1 respectively. In the case of post graduates, SC/ST has 3.2 percent of persons in labour force but their employment percent is 6.9 and among OBC it is 43.2 and 37.7 percent respectively. Among general category it is 53.6 percent and 55.4 percent. This shows that there is some kind of advantage in public sector jobs for the SC/ST community. The OBC labour force is not seen to be getting adequate importance in public sector jobs. The graduates in the general category also do not have adequate representation. The increased percentage of SC/ST in the public sector job may be due to the reservation policies and due to the lesser percentage of educated persons among the group. The logit model results also support this. Odd values from table: A.4.1, model-9, show that the probability to become a government employee is higher for SC/ST community and the lowest for females of general category Self-employment Table: 6.10 Category of self employed, (Percent) Category Kerala India Total Male Female Total Male Female Own account worker Owner Unpaid worker

13 153 In Kerala, among the self employed, 70.3 percent is working as own account workers percent working as owners while only 13 percent belongs to the unpaid family worker category (Unpaid market work) (table.6.10). Compared to this, at all India level, females working as own account worker constitute only 58.7 percent percent females work as unpaid family worker while only 2.2 percent are owners. In India 52.4 percent of workers are self employed and within this 39.1 percent are unpaid workers. In Kerala only 36.3 percent of workers are in self employed category in which only 13 percent are unpaid workers. The problem of unpaid workers is less prominent in case of Kerala. In India, 72 percent of the self employed women are working as unpaid family workers compared to 39.1 percent of male. In Kerala also this gender difference is visible. Only 8 percent of self-employed male are doing unpaid work, compared to 27.3 percent of female in the same category. This shows that in accounted worker category female percent is very low, and within this limited percentage, female do more unpaid work. This throws light on to the labour market issue of high unpaid work borne by the female. For improvement of the status of female it is just not enough to increase their work participation but the unpaid work is to be converted into paid work. In India, majority of women are engaged in self-employment and within self-employed, 72 percent is working as unpaid worker. But in Kerala, self employed constitute only 35.5 percent of total employment of which unpaid workers are only When compared to male it is high. This shows that in India, though the work participation seems to be higher than Kerala, a major portion of employed are actually not having any economic benefit. While analysing a person whether she is economically active or not on the basis of paid 6. They are the self-employed who operate their enterprises on their own account or with one or a few partners and who during the reference period by and large, run their enterprise without hiring any labour. They may, however, have unpaid helpers to assist them in the activity of the enterprise.

14 154 work it is seen that majority of female recorded to be working in India are economically not active. In case of Kerala the figures show actual open unemployment. Female members search for job opportunities which suit them, until then remain unemployed. This compels their male counterpart to get into any sort of employment available in the market for the survival of the family. Casual labour category constitutes major employment category in Kerala. While in India self-employed constitute more than half of the employed. In Kerala, the percent of regular salaried females are higher. Moreover, 38 percent (from table 6.3 &6.10) of women in India are engaged in unpaid category of market work while the involvement of female in the unpaid category of market work is very low in Kerala. This may be due to the high level of education among females which makes them more selective in employment or due to the lack of importance of agriculture which reduces the scope of female to remain in some economic activity along with their domestic care. In case of India, due to the lower level of education prevalent among females and the predominance of agriculture, female members are compelled to enter the labour market Formal and informal employment Informal employment traditionally is carried out among the poor and vulnerable who is either self- employed or work as casual wage workers. It is on the basis of the type of enterprise that the formal- informal classification had been done traditionally. But due to the increased informalization of formal sector employment demand, the stress has shifted from the increased enterprise to employment. The focus is on labour and their employment contracts rather than on the enterprise that they work with (Indian Labour Market Report 2008). It is defined that the informal sector consists of those working in the unorganized enterprises or households, excluding regular workers with social security benefits, and the workers in the formal sector without any employment/ social security benefits provided by the employers"(nceus 7 (2007) p.3). 7. National Commission for Enterprises in the Unorganized sector)

15 155 Analysing employment on the basis of the social security benefits (Table :6.9) shows that in India 71.7 percent of employed persons(excluding self employed) remain out of social security benefits and 66.1 percent is not even having leave facility. In Kerala 77.9 is away from any kind of social security benefit and 74.2 percent is not having leave facility. It is a fact that in the casual labour force there may not be any type of social securities and leave facilities, but it is seen that the public sector which is considered to be a well-secured sector also engages informal labourers. Table 6.10 shows that in India within public sector 16.6 percent does not have any kind of social security benefits and 11.9 do not have leave facilities. In Kerala within public sector17.9 percent is not having social security benefit and 13.7 percent is not having leave facilities. This shows the importance of changing the definition of informal sector from the traditional approach to modern employment definition. On the basis of the type of employment we can see that the percent of self employed and casual labourers constitute77.4 percent in Kerala. The regular salaried employees who do not have social security benefits also are to be considered as informal labour. Table: 6.11 Employees (excluding self-employed) having and not having social security benefit and leave facility, (Percent) India Kerala Type of benefits Yes No Yes No Any form of Social security Leave with payment Table: 6.12 Employees having and not having social security benefits and leave facility in the Public sector, (Percent) India Kerala Type of benefits Yes No Yes No Any form of Social security Leave with payment

16 156 Table: 6.13 Formal and informal Employment in India and Kerala, (Percent) Type of employment Kerala India Total Male Female Total Male Female Formal Informal From Table 6.13 it is clear that the percent of formal 8 employment is high in Kerala compared to India. In Kerala percent of employees having social security benefit whereas, in India it amounts to only 7.6 percent of total employment. Most striking difference in India and Kerala is the gender disparity seen in formal and informal employment. In India, only 4.67 percent of female workers are engaged in formal employment compared to percent in Kerala. At all India level the percent of regular salaried having some social security benefit is higher for male (8.9 percent). Where as, in Kerala females engaged in secured jobs are higher compared to male. In Kerala, females enter the job market only if they are able to get job of their preference and which shall enable them to fulfill reproductive role and the related care work Manual Job and non-manual job It is often stated that people of Kerala state are reluctant to do manual jobs and prefer white color jobs. Traditionally, manual jobs were carried out by lower caste people. Hence it is necessary to analyse the distribution of manual jobs among various social groups. 8. Those workers having regular salaried/wage employment with some kind of social security benefit.

17 157 Table: 6.14 Manual and non-manual jobs: Relative share in total employment, (Percent) Type of job India Kerala Manual work Non-manual Table 6.15 Share of Manual and non-manual jobs and social groups, (Percent) State Type of job ST SC OBC Others India Manual work Non-manual Kerala Manual work Non-manual From Table: 6.14 and 6.15 shows about 34 percent of jobs are manual in nature both at all India level and the state of Kerala. In India, 36.9 percent of jobs of the scheduled tribes are manual in nature. While in Kerala 66.3 percent of the jobs done by scheduled tribes are manual in nature. Among SC, in India it is found that 50 percent of their jobs done are manual in nature compared to 57.2 percent in Kerala percent of OBC in India and 33.7 percent of OBC in Kerala are engaged in manual jobs compared to this, in general category only around 23 percent of people are engaged in manual jobs both at all India level and Kerala. Table 6.16 Social groups and share of employment, (Percent) Social groups Kerala India ST SC OBC Others

18 158 Moreover from Table 6.16 and 6.17 it is evident that in Kerala, among the total employed persons, 2.2 percent is ST, while their percent in manual job is 4.2. In India it is 10.2 and 11 percent respectively. SC consists of 12.6 percent of total employed in Kerala of which 21 percent of manual jobs. In India, this percent is 19.9 and OBC constitute 57.3 percent of total employed in Kerala doing 56.1 percent of total manual work. Persons belonging to the Upper caste (general category) do around 28 percent of the total employment in Kerala and in India whereas; their involvement in manual work is only around 19 percent. Here it is useful to examine the distribution of manual jobs among women. It is found that only 11.6 percent 9 of total female employment in Kerala is manual in nature which shows that majority of manual jobs in Kerala are done by male members. The statistical results show that the probability of doing manual job by an SC/ST employed female is 2.1 times higher compared to upper caste(general category) while it is 32 percent more for OBC. Another important finding is that in Kerala, female belonging to poorer section have 3.58 times more chance to be engaged in manual job compared the upper quartile class. And 2.16 times more for the second quartile category and 41 percent higher for the third quartile category compared to the upper quartile. It is a striking fact that currently married female have the lowest probability to be engaged in manual labour, divorce/separated females have 4 times more chance to be engaged in manual labour than currently married proves that separated/divorced enter job market due to economic compulsion 10. Among religion, Muslim community has a very low level probability to become manual labourers. It is seen that the females in Hindu community has 3.54 times and Christian females have 2.69 times more chance to become manual employees compared to the Muslims (see Appendix: table.4.3, model-9). 9. Source; NSSO unit level data 61 st rounds. 10. Here it is useful to note that among currently married employees, the percentage doing manual job is only 10.8 while that percentage is 41.4 among separated/divorce. The state average of manual job is only 34.4; hence, this high level involvement of separated women in manual job confirms conclusion of economic compulsion and job market entry of female.

19 159 Above analysis shows that in Kerala, the so-called social movements have brought about changes in the division of labour on the basis of caste and creed which had originated in the feudal value system. However, grass root level changes had not occurred in Kerala in this dimension. The social nexus remains the same, though it is propagated that social discrimination has been removed. Majority of manual jobs are carried out by male Only about 11 percent of female employees are engaged in manual jobs, but within separated/divorced women, 41.4 percent are engaged in manual job which shows that economic pressure compel female to enter market work. Here market work participation cannot be considered to be a positive sign for female empowerment. Table: 6.17 Social groups and share in manual and non-manual jobs, (Percent) State Type of job ST SC OBC Others Kerala Manual Non-manual India Manual Non-manual The above analysis gives us an idea about the type of job distribution between the social groups in Kerala and India. A detailed analysis of the social division and gender is carried out analysing the distribution of demand in different enterprises, the type of contract in employment, the method of payment and the distribution of employment within industries in Kerala and India Type of Enterprises in India and Kerala Table 6.18 shows the percentage distribution of enterprise in Kerala and India. From this it is evident that in both India and Kerala, male proprietorship constitutes more than 65 percent of enterprises compared to all India. Female

20 160 proprietorship is slightly higher in Kerala. Government sector constitute12.1 percent of the Indian enterprises compared to 10.5 percent in Kerala. Table: 6.18 Type of Enterprises: India and Kerala, (Percent) Type of enterprise India Kerala Proprietary: male Proprietary: Female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others Total Different Table: 6.19 Types of jobs in enterprises of Kerala, (Percent) Type of Enterprise Self Regular Casual employed salaried labourers Total Proprietary: male Proprietary: female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others

21 161 Table: 6.20 Different types of jobs in enterprises of India, (Percent) Type of Enterprise Self Regular Casual employed salaried labourers Total Proprietary: male Proprietary: Female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others Table: 6.19 & 6.20 shows the percentage share of different types of jobs within different types of enterprises. In Kerala, out of the total jobs provided by the proprietary enterprise of male, 41.7 percent is in the form of self employment, 14.3 percent are in regular salaried job and the rest 44 percent are casual labourers. In the case of jobs provided by the proprietary enterprise of female, 86.6 percent is in the form of self employment, 3.5 percent are in regular salaried workers and the rest 9.9 percent are casual labourers. In India, female proprietorship has 94.5 engaged as self employed and 2.8 percent regular salaried and 2.7 percent as casual labourer. Table 6.4, shows that the monthly per capita consumption expenditure is comparatively higher for those engaged in jobs under employers household category of enterprises (domestic servants). It should be related with the fact that among the educated section, especially higher secondary above, none of them is engaged in this type of job percent of total employment generated in this enterprise is occupied by middle school below qualified and only 3.4 percent is

22 162 secondary qualified and a negligible 0.1 percent diploma holders 11. This result can be understood with the finding that in less educated section, demand is more compared to its supply and this should be related with the findings of analysis carried out earlier, that majority of non-economic workers report about non availability and non affordability of care substitutes. This indicates that care substitutes are scarce and dearer. In India as a whole 93.7 percent of jobs in government sector are regular salaried work and in Kerala it is 91.8 percent. The rest of the jobs are informal in nature. In the public/private limited companies in Kerala only 79.7 percent are engaged in regular salaried job compared to 82.2 percent at all India level. co-operative sector in Kerala provides for their 85.8 percent of jobs as regular salaried while that is 92.6 percent at all India level. Among the employers household enterprise (duties such as such as care work, watchman work, etc) in Kerala 55.5 percent of works are regular salaried compared to 72.3 in India. comparison with India, it is seen that the percent of casual labourers that exists in all types of enterprises are high in case of Kerala state. Political awareness and the active involvement of trade unions in the workers welfare are very high in Kerala and this may be the reason which pursues the entrepreneur not to give regular job. Table: 6.21 Relative importance of different types of enterprises in creating job in Kerala (percent) Type of Enterprise Self Regular Casual employed salaried labourers Total Proprietary: male Proprietary: Female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others The In 11. Calculated from NSSO 61st round, unit level data.

23 163 From Tables 6.21 & 6.22 it is evident that in Kerala, 73.8 percent of self employment 34.7 percent of regular salaried job and 79.4 percent of casual labour exists in male proprietary ship enterprises. In India, male proprietary enterprises provide 81.1 percent of self employment, 37.4 percent of regular salaried job and 76.7 percent of casual labour. As we have seen earlier in Kerala and in all India, around 65 percent of enterprises are male propriety enterprises. Next important enterprise being public sector enterprise provides around 34 percent of regular salaried jobs in Kerala and all India. In Kerala 10.5 percent of total enterprise is government sector and in all India it is 12.1 percent. Male proprietary enterprises are major job providers in the form of self employed, regular salaried as well as casual labourers both in Kerala and in India. Government/public sector have the second position in providing regular salaried jobs in both Kerala and all India. In case of female proprietary enterprises in India they contribute towards 13.3 percent of the total self employed and less than one percent of regular salaried as well as casual labourers. For Kerala, the situation is only slightly better with contribution of 18.3 percent towards self employment, one percent of regular salaried job and 2.1 percent of casual labour. Table: 6.22 Relative importance of different types of enterprises in creating different jobs in India, (percent) Self Regular Casual Type of Enterprise employed salaried labourers Proprietary: male Proprietary: Female Partnership: same HH Partnership: different HH Government/public sector Public/private limited company Co-operative society Employers HH Others

24 164 After the implementation of liberalization, privatization and globalization, it is argued that the traditional types of factories disappeared and manufacturing units are disaggregated to different parts of the country. Moreover the concept of sweat shops' emerged. So it is really interesting to see the location of work place by the employees. Hence the next section analyses the location of work place of Kerala in comparison with India Location of work in India and Kerala. Table: 6.23 show the percentage distribution of workers by location of work place. 6.1 percent of workers are not having specific work place in Kerala compared to 7.4 percent at all India level percent of workers work in their own dwelling in Kerala which is In India the percent is percent of workers are located in employer s enterprise but outside employers dwelling in Kerala while that of India it is 33.8 percent percent is located at construction site in Kerala whereas; in India it is only 9.9 percent. Table: 6.23 Distribution of Location of work, ( ) Percent Kerala India Location of work Male Female Total Male Female Total No fixed work place Own dwelling Own enterprise but outside own dwelling Employers dwelling Employers enterprise but outside employers dwelling Street with fixed location Street without fixed location Construction site Others

25 165 Disparity within the gender also exists in respect of location of work place. Majority of the women in India are working in there own dwelling (39.2 percent). In Kerala also the percent in this category is higher when compared to male. But majority is working in employer s enterprise but out of employers dwelling. In India we found that majority of female workers are unpaid family workers. That may be the reason for the work place being located in their own dwelling. Moreover the mobility of women are restricted due to reproductive and related household work burden and so those who are working have to find job nearby their locality Work contract & Method of payment in India and Kerala Work contract reduces the freedom of workers to move from one job to another. So it is interesting to study about the type of job on the basis of contract. From Table: 6.24 it is evident that in India 74.1 percent of workers are working without job contract of which 74.5 percent are male and 72.2 percent are female. In Kerala, 79 percent of workers are not having job contract. But clear cut gender difference exists in Kerala's job market against women. Among women the percent having no written job contract constitute only 66.4 percent against the 83.3 the male. That shows 33.6 percent of female workers are having some kind of job contract. Among male it is only 16.7 percent percent of women are working with three years job contract. This shows that 33.6 percent of female in Kerala have lesser freedom for moving from one job to another. In India, 24 percent of women and 22.6 percent of male members are working with more than three years job contract. But in Kerala male percent is only 14.5 percent. This shows that in Kerala, male members are not having much restriction on job change due to job contract when compared to their female counterparts or male in India. But women in Kerala face more restrictions than their male counterparts and all India female workers.

26 166 Table: 6.24 Type of contract in India and Kerala (workers except self employed), (Percent) Kerala India Type of contract Male Female Total Male Female Total No written job contract For one year or less More than 1year to 3year More than three yrs Table: 6.25 Method of Payment: workers other than self employed, , (Percent) Kerala India Method of Payment Male Female Total Male Female Total Regular monthly Salary Regular weekly payment Daily payment Piece rate payment others Table: 6.25 show the method of payment among the regular salaried and casual labourers. In Kerala 38.5 percent of employees are having regular monthly salary. But in India the percent is In the case of male in Kerala 31.8 percent is having monthly salary while that of women is 57.9 percent. In India it is 58 percent and 62.2 percent respectively. In India majority receives payment monthly irrespective of gender. In Kerala majority of women are having payment in regular monthly salary. Whereas, in the case of male majority receives daily payment.

27 167 As we know that the demand for labour is derived from the demand for commodities which is produced by labour. Hence, it is really interesting to know about the distribution of demand for labour in different industries. Labour strategies can be taken on the basis of the labour absorption capacity of the sectors. So the next section we have a look at the demand for labour in different industrial sectors of the economy Distribution of workers between industries Table: 6.26 Labour absorption in Different industries, (Percent) Kerala India Industry Total Male Female Total Male Female Agriculture and allied activities including fishing Manufacturing Electricity gas & water supply Construction Service sector Table: 6.26 give the distribution of workers in Kerala and India within different industries. The percent of workers absorbed in Agriculture and allied activities in Kerala constitute 33.4 percent of which In 32 percent are male and 37.1 percent are female. In India, of the 56.8 percent of worker in agriculture and allied activities male constitute 51.2 percent and women 71.3 percent. This shows that in Kerala, agriculture and allied activities absorbs one third of total workers while in India more than half of the workers are engaged in agriculture and allied activities. Indian economy being mainly an agrarian, majority of the demand for labourer (56.8 percent) also comes from agriculture. But income wise, it is seen

28 168 to be considerably low (only20 percent). The industrial division of workers shows that in Kerala one third of job opportunities are still from agriculture and allied activities, though the percent of state domestic product from this sector is only It is found that only 40 percent of total workers are absorbed by service sector, but the percent of SDP from this sector is This shows that in Kerala, agriculture sector is have major role in absorbing labourers, but has low productivity when compared to service sector and hence the income earning capacity of jobs in agriculture is low. This finding is supported by the low level of average monthly per capita consumption expenditure by agricultural labourers. Hence it can be argued that the labour shortage may be due to the low level of economic benefit from agriculture and allied activities. Among female, 63.6 percent of employed are absorbed in real production sectors, such as primary and secondary sector. Among male the real sector is absorbing only 58.9 percent of workers. Among total workers 60 percent is still in the real production sector, primary and secondary, but these two sectors contribute only percent of state domestic product. These findings show that modernization and there by improving productivity of real production sector is the only solution to the labour market problem of Kerala. In India, 56.8 percent of total workers are absorbed in primary sector, only percent of the total GDP is coming from this sector. And only 25 percent of workers are absorbed in services sector which contributes to 54 percent of countries GDP. These figures lead us to the conclusion that due to the development experience of Kerala, more labourers are absorbed in the productive service sector, while in India may be due to lack of educated labour supply this possibility has not been emerged. Hence majority still depends upon less productive, less contributing agriculture sector. Kerala could achieve a lot due to social development. Liberal and less expensive education system and related social development help Malayalees 16 to enter the 12. Source: Department of Economics and Statistics. 13. Same as above 14. Same as above 15. In , source: CSO. 16. Those who belongs to Kerala

29 169 most competitive job market of present day world and there by improve their standard of living 17. In India, 71.3 percent of females are engaged in agriculture and allied activities whereas, in Kerala only 37.1 percent of females are engage. Manufacturing sector created 14.5 percent of total job opportunities in Kerala of which the percentage of male is only 11.3 compare to 23.5 percent share of females in manufacturing jobs. In India only 11.8 percent of total workers are absorbed by manufacturing sector. The share of male and female in the sector is around 12 and 11.3 percent respectively. In Kerala, construction sector provides for 11.8 percent of total job opportunities of which the percentage share of male is 15.2 and whereas the share of female is only 2.2. In India this sector constitutes only 6.1 percent of job opportunities in which 7.5 percent male and 2.2 percent of women. Service sector provides 40 percent of total job opportunities in Kerala percent of male workers and 37 percent of female workers are absorbed by service sector. But in India service sector creates only 25.1 percent of total labour demand. In which 28.8 percent of male and 15.2 percent of female demand are from service sector. It is evident that like all other indicators of development, education helped women in Kerala to be absorbed in modern sectors and helped them to escape from the traditional orthodox cells that they were in. Indian situation is rather different in this matter and female community still find their main stay in traditional less productive less remunerative orthodox agricultural sector as unpaid workers. This leas to the conclusion that From this one can conclude that Agriculture and allied activities constitute the major sector creating demand for female labour both in Kerala and all India. But the share of female in this sector is low in Kerala compare to all India. In Kerala, service sector also is having an important role. The service sector in Kerala seems to have almost similar share to agriculture in female employment and for male it has the highest share. In total 17. Kerala stands first in per capita consumption expenditure in India.