Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - India (Ratification: 1998)

Articles 1 and 2 of the Convention. Formulation and implementation of an active employment policy. The Committee notes the detailed information and statistics provided by the Government in a report received in August 2012 in response to the request made by the Conference Committee in June 2012. The Government indicates that, from 2004–05 to 2010–11, the Indian economy has enjoyed an unprecedented 8.5 per cent growth, despite the fact that this was a period that saw a severe global financial and economic crisis. The crisis slowed down the growth rate to 6.8 per cent in 2008–09, but the economy rebounded with a robust growth rate of 8.6 per cent in 2010–11. This was composed of 5.4 per cent growth in agriculture, 8.1 per cent in industry and 9.6 per cent in services. The performance in agriculture has been particularly satisfying, with farmers producing more than 235 million tonnes of food grains. The Government indicates that India weathered the 2008 global crisis well by using the available fiscal space for inclusive growth through higher spending for employment generation and poverty alleviation programmes. Unlike other developed countries where the measures to counter job losses were ad hoc and contained elements of protectionism, in the Indian case, the programmes for employment generation were planned with a long-term outlook free of any elements of protectionism. Employment generation programmes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have been instrumental in creating employment opportunities and placing additional income in the hands of the poor and disadvantaged sections of society. The Government also states that it is working to develop the knowledge, skills and attitudes of stakeholders involved in rural development so as to introduce them to the newest concepts, techniques and information to enable them to act as catalysts for qualitative development. The Committee invites the Government to indicate in its next report to which extent measures implemented under the Five-Year Plan 2007–12 have managed to improve the quality of the employment generated and alleviate both unemployment and underemployment. Please also provide information on the efforts made to improve the employment situation for young persons and workers in the unorganized sector and the results achieved in terms of designing targeted programmes and incentives for the promotion of sustainable job creation for the youth and for those working in the informal economy.

Labour market trends. The Government reports that underemployment in various segments of the labour force is quite high. During 2009–10, the proportion of usually employed women who were found not to be employed during the week preceding the date of the survey was 15 per cent in rural India and nearly 6 per cent in urban India. The Committee notes from the 44th Session of the Indian Labour Conference held in February 2012 that the female labour force participation rates in the country are low and have remained more or less constant over the past decades. The Government further reports that employment estimated on a usual basis has increased from 459.1 million in 2004–05 to 465.48 million in 2009–10, which shows an increase of about 6.4 million people able to find employment during that period. The number of young jobseekers in the 15–29 age group, not all of whom may necessarily be unemployed, registered with employment exchanges was 270 million on 31 December 2008. The Committee notes the information provided by the Government indicating that workers from scheduled castes, scheduled tribes and minorities are predominantly engaged in the labour market as casual workers, self-employed in agriculture, small manufactures and traders. The proportion of regularly employed workers is as low as 6.7 per cent among scheduled tribes and a little over 12 per cent among scheduled castes and minorities. The Committee would welcome continuing to receive relevant data on the situation and trends of the labour market disaggregated by state, sector, age, sex and skills, in particular for socially vulnerable groups, such as young persons, women jobseekers, scheduled castes and scheduled tribes, ethnic minorities and persons with disabilities (Article 1(2) and Article 2(a)).

Employment generation programmes. The Committee notes the detailed information provided by the Government on the different employment generation programmes implemented in order to create employment opportunities for unemployed persons, including young persons and rural workers. During the 11th Five-Year Plan 2007–12, a number of employment-oriented programmes like the MGNREGA have been implemented resulting in employment generation. It further indicates that the employment generation programmes are constantly reviewed and assessed for better performance. In the 2011–12 financial year (up to December 2011), 37.7 million households were provided employment with an average of about 32 days of employment generated per household. The Government reports that the enhanced wage earnings have led to a strengthening of the livelihood resource base of the rural poor in India as 72 per cent of the funds utilized were in the form of wages paid to workers. Furthermore, the Ministry of Rural Development has decided to redesign the ongoing Swarnjayanti Gram Swarojgar Yojana (SGSY) programme into the National Rural Livelihood Mission (NRLM) to make it universal in application, focused in approach, and time bound for poverty eradication by 2014–15. The idea has been conceived as a cornerstone of the national poverty reduction strategy. The Committee invites the Government to continue to provide information on the impact of the MGNREGA and other major employment generation programmes in enhancing job growth and sustainable employment for poor workers in the rural sector.

Article 3. Consultation with the representatives of the persons affected. The Committee notes with interest the information provided by the Government concerning tripartite consultations. The Government reports that the 44th Session of the Indian Labour Conference included discussions on issues such as the possibilities of enhancing female labour force participation, skills development for young persons, minimum wages, social security, employability and employment. Furthermore, the Government indicates that an Act like the MGNREGA, seeking to empower poor rural communities and transforming traditional hierarchical relationships through its rights-based processes, is bound to encounter a host of challenges. The Ministry of Rural Development has taken various initiatives to address these issues and strengthen the implementation of the MGNREGA through active participation by the social partners. The Committee invites the Government to continue to provide examples of questions addressed and decisions reached on employment policy through tripartite bodies. It would also appreciate continuing to receive information on the involvement of the social partners in the implementation of the major employment generation programmes.

Part V of the report form. ILO technical assistance. The Government indicates that the Decent Work Country Programme – India Document (2007–12) is being implemented in collaboration with the ILO. The National Policy on Skill Development, National Policy on Safety, Health and Environment at Work Place and National Policy on HIV/AIDS and the World of Work were also formulated with inputs and technical expertise from the ILO. The Committee invites the Government to continue to provide information on the measures taken as a result of the assistance received from the ILO with respect to the matters covered by the Convention.