Developers Hired 1,000 Casual Workers After Demonetisation: Govt Survey

Prime Minister Narendra Modi's surprise announcement that his government is tendering notes of high-value denominations illegal on November 8 was more of a shock for most Indians. The move, aimed at bringing transparency among many other positive things in the long run, was going to do a great deal of damage in the short term. Businesses feared they would have to shut shop; employees dreaded being culled as a result of that. Their worst fears were confirmed. Soon after, a hoard of private players announced they would be cutting workforce to save their businesses. However, data by the labour ministry present a different picture.

While a survey by the Labour Bureau shows that casual workers suffered the most as demonetisation forced the industry to trim workforce, about 1.32 lakh jobs were added between October and December of last year.

According to the quarterly employment survey (QES) of the Labour Bureau, around 1.52 lakh casual workers engaged across eight sectors lost their jobs during the October-December period of 2016. The eight sectors included in the survey are accommodation & restaurant, construction, education, health, information technology & business process outsourcing (IT & BPO), manufacturing, trade and transport.

The biggest cull was witnessed in the manufacturing sector, with 1.13 lakh people losing their jobs during the period. This is the sector that, ministry data show, employs half the workforce of the country.

Data show that some 20,000 casual workers lost their jobs in the IT/BPO sector. Interestingly, real estate developers recruited 1,000 casual workers during the period, making the construction sector an exception. The sector also saw 1,000 causal workers getting jobs during the period. However, when it comes to regular workers, about 4,000 people lost their jobs in the construction sector.

Overall, however, there was an increase of 1.39 lakh regular workers and 1.24 lakh contract workers during the period over the July-September quarter.

The survey reveals that on a sequential basis, there were positive changes across sectors. On the contrary, the construction sector saw a negative change in estimated employment.  The survey also shows that of the total additions in the workforce during the period, 52,000 were women and 70,000 were men.

It is worth mentioning here that the Prime Minister Narendra Modi-led government plans to provide employment to five crore unemployed people by 2020. This, the labour ministry says, would be achieved through digital solutions and job melas.

Also Read:  Is Demonetisation Illegal?