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Decline in employment in textile sector
May '10
The Government has been continuously watching the effect of employment situation due to global financial crisis and economic slowdown in India. The current survey is the sixth in the series of “Quarterly Quick Employment Surveys in Affected Sectors” conducted in the month of April 2010 and covering January to March 2010 by Labour Bureau to assess the impact of economic slowdown on employment in India.

In the sixth quarterly quick employment survey, the sample establishments covered in the previous survey have been revisited to assess the changes in employment. During the survey, the information has been collected from 2,815 units / establishments by covering 21 centres spread across eleven States and union territory.

The results about effect on employment in the eight selected sectors textiles including apparels, leather, metals,automobiles, gems & jewellery, transport, IT/BPO and handloom / powerloom are briefly summarized as below:-
- An analysis of changes in employment that took place during the quarters falling in the financial year 2009-10 (i.e. Mar,2010 over Mar, 2009), indicates that the overall employment in the eight selected sectors covered in the quarterly surveys has increased by 10.66 lakh (0.16%) during this period. In IT/BPO sector the increase in the employment is maximum (6.9 lakh) during the year 2009-10.

- The increase in employment in the selected eight sectors derived on the basis of quarterly surveys also corroborate the facts relating to overall growth of 7.2% in GDP at factor cost at constant prices and IIP indicating a growth of 10.4% during the year 2009-10.

- As regard the employment during the current quarter i.e. January to March 2010, it has increased in all the sectors except textiles including apparels and marginal decline in handloom / powerloom and transport sectors. At overall level (all sectors covered), the employment has increased by 0.61 lakh in March 2010 over December 2009. In textile (including apparels) sector, the employment has declined by 1.19 lakh during the period March,2010 over December 2009.

- The employment in the contract category of workers has increased by 0.74 lakh and the employment of direct workers has decreased by 0.13 lakh during the period March, 2010 over Dec, 2009.

- In the exporting units the employment has increased by 1.87 lakh during the period March, 2010 over Dec, 2009; however in the non-exporting units it has declined by 1.25 lakh during the same period.

- All the sector units taken together, registered increase in earnings of workers by 7.1% except the leather units wherein earnings have declined by 1.4% during the period March 2010 over December 2009. The maximum increase in the earnings is seen in the IT/BPO sector where it has increased by 9.3 per cent during the period.

Ministry of Labour & Employment

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