Employment growth in india

BY : MOHAMMAD IRFAN

Employment growth :The number of payroll jobs that are created every month, as reported by the Bureau of Labor Statistics. A higher number indicates that employment fields are being filled up, hence leading to a stronger economic condition.

Employment structure in India:In India, agriculture contributes to 67.9% of employment but it only contributes to 38.34% of rural GDP and about 12% to India’s GDP. It shows that even though structural transformation in GDP taken place rapidly, transformation in employment is very slow especially in rural areas.

Pursuing employment growth in india :• Reflecting the uptick in the economy, employment generation in

the eight key sectors grew at its fastest pace in over two years during the first quarter of this fiscal, with more jobs being given to permanent category workers.

• As many as 1,82,000 jobs were created in these eight sectors including textiles, IT and automobiles during April to June 2015, according to a quarterly survey by the labour ministry.

• In contrast, 36,000 jobs were lost in these sectors in the quarter ended March 2015. The sharpest growth prior to this was in the quarter ended December 2015 when 2,26,000 jobs were added in these sectors.

7th pay commission :

Finance Minister “Arun Jaitley” receives the 7th Pay Commission report from Justice “A K Mathur” in New Delhi.

1. Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at 18,000 per month. ₹

2. Maximum Pay: 2,25,000 per month for Apex Scale and ₹2,50,000 per month for Cabinet Secretary and others ₹

presently at the same pay level.

3.Financial Implications: a) The total financial impact in the FY 2016-17 is likely to be 1,02,100 crore, over the expenditure as ₹per the „Business As Usual‟ scenario. Of this, the increase in pay would be 39,100 crore, increase in allowances would be ₹ ₹29,300 crore and increase in pension would be 33,700 crore. ₹b) Out of the total financial impact of 1,02,100 crore, 73,650 ₹ ₹crore will be borne by the General Budget and 28,450 crore by ₹the Railway Budget. c) In percentage terms the overall increase in pay & allowances and pensions over the „Business As Usual‟ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent. d) The total impact of the Commission's recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.