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Q1 2021 Employment Survey Shows 29% Increase in Nine Sectors

The Labour Bureau, a part of the Ministry of Labour and Employment, recently publicized the results of the Quarterly Employment Survey (QES) for the First Quarter of 2021. The survey takes into account the time period from April to June. The report offers intriguing insights on various aspects of India’s job scene, highlighting certain key points about the All-India Quarterly Establishment-based Employment Survey (AQEES), of which QES forms a part.

Understanding QES Survey and Its Objective

The QES is an integral component of AQEES and concentrates on organisations employing 10 or more individuals in nine different sectors in the organised segment. These sectors encompass Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation and Restaurants, IT/BPO, and Financial Service Activities.

Primarily, the idea behind conducting this survey is to equip the government with valuable data that can help in forming a robust national policy on employment. Keeping in line with the International Labour Organization’s (ILO) Employment Policy Convention, ratified by India in 1998, the country is required to execute a proactive policy aimed at promoting full, productive, and freely-chosen employment. However, India has yet to establish its own National Employment Policy (NEP).

QES Vs PLFS: Different Perspectives

While both the QES and the Periodic Labour Force Survey (PLFS) serve valuable purposes, they provide different viewpoints. The QES offers a demand-side image of the job market while the PLFS, conducted by the National Statistical Organization (NSO), furnishes a supply-side image.

Limitations of QES Data

Because the QES focuses solely on establishments employing a minimum of 10 workers, it essentially depicts the formal economy. Considering the fact that informal workers, who lack written contracts and benefits, make up approximately 90% of India’s workforce, the data from QES provides only a limited view of the labour market.

Key Takeaways from the 2021 QES Data

The 2021 QES report indicates a 29% rise in employment in the nine sectors during the peak Covid-19 months of April-June 2021, based on 2013-14 figures. However, it also reveals a decline in the percentage of female workers – from 31% in 2013 to 29% in 2021. Of the nine sectors analysed, seven witnessed employment growth while two (Trade, and Accommodation & Restaurants) experienced a drop in employment figures. The IT/BPO sector saw the most growth, with a 152% increase between 2013 and 2021. Overall, there has been an absolute increase in employment figures from 1998 to 2021.

Introduction to AQEES

The AQEES was initiated by the Labour Bureau to provide frequent updates about the employment scenario and relevant factors of establishments in both organised and unorganised segments of nine chosen sectors. It consists of two parts: the Quarterly Employment Survey (QES) and the Area Frame Establishment Survey (AFES). While QES provides the employment estimates for organisations employing 10 or more workers, AFES covers the unorganised segment via a sample survey.

About Economic Census

The Economic Census offers a comprehensive count of all establishments within India’s geographical boundary. It provides critical insights into the geographical spread of economic activities, ownership patterns, and employment statistics of all economic establishments. This census is conducted every five years and is essential for policy framing and planning by the government and other organizations. Till date, six Economic Censuses have been conducted. The most recent one, the 7th Economic Census, is being carried out by the Ministry of Statistics and Programme Implementation since 2019.

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