• Evaluation of the progress of the development of minorities under the Union and States.
• Monitoring of the working of the safeguards for minorities provided in the Constitution and in laws enacted by Parliament and the state legislatures.
• Ensures that the Prime Minister's 15-point programme for the welfare of minorities is implemented and the programmes for minority communities are actually functioning.
• Making recommendations for the effective implementation of safeguards for the protection of the interests of minorities by the central or state governments.
• Looking into specific complaints regarding deprivation of rights and safeguards of minorities and taking up such matters with the appropriate authorities.
• Investigates matters of communal conflict and riots. For example, the 2011 Bharatpur communal riots, as well as the 2012 Bodo-Muslim clashes in Assam, were investigated by the commission and their findings were submitted to the government.
• Observes the Minorities Right Day every year on 18^th December which marks the adoption of the “Declaration on the Rights of Persons belonging to National or Ethnic, Religious and Linguistic Minorities” by the United Nations in 1992.

6. Measures Needed to make Natioanal Commission for Minorities more effective

2. Location of Katchatheevu Island

Katchatheevu is a small, uninhabited island covering 285 acres situated in the Palk Strait, positioned between India and Sri Lanka. It measures approximately 1.6 kilometres in length and slightly over 300 meters wide at its widest point.

• The island is located northeast of Rameswaram, around 33 kilometres from the Indian coastline. It is situated approximately 62 kilometres southwest of Jaffna, which is at the northern tip of Sri Lanka. Moreover, Katchatheevu is about 24 kilometres away from Delft Island, an inhabited island that belongs to Sri Lanka.
• The notable feature on Katchatheevu Island is the St. Anthony’s Church, built in the early 20th century. This Catholic shrine holds cultural and religious importance, especially during its annual festival. Christian priests from both India and Sri Lanka conduct services during this festival, attracting devotees from both countries who make pilgrimages to the island. In 2023, around 2,500 Indians travelled from Rameswaram to participate in this significant event.
• Despite its religious and cultural significance, Katchatheevu is not suitable for permanent human settlement due to the absence of a reliable source of drinking water on the island. This limitation restricts any long-term habitation on the island, making it primarily a site for occasional religious gatherings and pilgrimages.

3. Historical Background of Katchatheevu Island

Katchatheevu Island, formed as a result of a volcanic eruption in the 14th century, holds a relatively recent place in the geological timeline.

• During the early medieval period, Katchatheevu was under the control of the Jaffna kingdom of Sri Lanka. However, by the 17th century, control shifted to the Ramnad Zamindari, which was based in Ramanathapuram, approximately 55 kilometres northwest of Rameswaram.
• With the advent of colonial rule, Katchatheevu became part of the Madras Presidency under the British administration. In 1921, both India and Sri Lanka, then British colonies, laid claim to Katchatheevu to delineate fishing boundaries in the region.
• A survey conducted during this period marked Katchatheevu as part of Sri Lanka. However, a British delegation from India contested this claim, asserting ownership of the island by the Ramnad kingdom.
• The dispute over the ownership of Katchatheevu persisted until 1974 when a final resolution was reached. This resolution marked a significant milestone in clarifying the status of the island and delineating the maritime boundaries between India and Sri Lanka.

4. Indo-Sri Lankan Maritime Agreement and Fishing Rights

In 1974, efforts were made by then-Prime Minister Indira Gandhi to resolve the maritime border dispute between India and Sri Lanka permanently. This initiative led to the establishment of the 'Indo-Sri Lankan Maritime Agreement,' which resulted in the cession of Katchatheevu to Sri Lanka by India.

• Under the agreement, Indira Gandhi decided to "cede" Katchatheevu to Sri Lanka, perceiving the island to hold little strategic value for India. This move was intended to strengthen diplomatic ties between the two neighbouring countries.
• Despite ceding the island, Indian fishermen were granted continued access to Katchatheevu as per the agreement, maintaining their traditional fishing practices in the region. However, the agreement did not explicitly address the issue of fishing rights, leading to subsequent challenges and differing interpretations.
• Sri Lanka interpreted Indian fishermen's access to Katchatheevu as limited to activities such as resting, drying nets, and visiting the Catholic shrine, without requiring a visa. This interpretation created ambiguity regarding the extent of fishing rights granted to Indian fishermen in the waters surrounding Katchatheevu.
• In 1976, another agreement during India's Emergency period further complicated matters by prohibiting both countries from fishing in each other's Exclusive Economic Zones (EEZs). However, Katchatheevu lies at the boundary of both countries' EEZs, adding to the uncertainty surrounding fishing rights and activities in the region.
• The agreements made in the 1970s regarding Katchatheevu and fishing rights have left unresolved issues, contributing to periodic tensions and disputes between Indian fishermen and Sri Lankan authorities. The lack of clear delineation and mutual understanding regarding fishing access around Katchatheevu continues to be a contentious issue between India and Sri Lanka.

5. Impact of the Sri Lankan Civil War on Katchatheevu

The period between 1983 and 2009 was marked by the Sri Lankan Civil War, during which the border dispute involving Katchatheevu took a back seat amidst the intense conflict.

• During the civil war, Sri Lankan naval forces were primarily focused on combating the Liberation Tigers of Tamil Eelam (LTTE) based in Jaffna. This preoccupation allowed Indian fishermen to venture deep into Sri Lankan waters without significant repercussions. Incursions by Indian fishermen, especially using larger trawlers, became common during this time. These activities led to tensions as they not only overfished but also caused damage to Sri Lankan fishing equipment and vessels.
• The end of the civil war in 2009 brought about significant changes. Sri Lanka bolstered its maritime defences and shifted its attention to issues such as illegal fishing activities by Indian fishermen.
• Indian fishermen, facing resource depletion in Indian waters, continued to venture into Sri Lankan waters as they had done for years. However, with increased surveillance and stricter enforcement post-civil war, they began facing arrests and other consequences by the Sri Lankan navy.
• To this day, the Sri Lankan navy regularly apprehends Indian fishermen for illegal fishing activities in Sri Lankan waters. Incidents of alleged custodial torture and deaths have also been reported, further complicating the situation. Each such incident reignites demands to revisit the issue of Katchatheevu and its impact on fishing rights and maritime boundaries between India and Sri Lanka. The historical context of the island's ownership and fishing rights continues to be a source of contention and debate between the two nations.

6. Tamil Nadu's Stance on Katchatheevu

The issue of Katchatheevu holds significant political and emotional weight in Tamil Nadu, with successive governments and leaders advocating for its retrieval and the restoration of fishing rights for Tamil fishermen.

• The decision to "cede" Katchatheevu to Sri Lanka in 1974 without consulting the Tamil Nadu state assembly sparked immediate protests. This decision was seen as infringing on traditional fishing rights and livelihoods of Indian Tamil fishermen, given the historical ties of the Ramnad Zamindari to the island.
• The Tamil Nadu Assembly has consistently demanded the retrieval of Katchatheevu and the restoration of fishing rights. Leaders like J Jayalalitha and MK Stalin, among others, have actively pursued this agenda through legal and diplomatic channels.
• In 2008, Jayalalitha filed a petition arguing that ceding Katchatheevu required a constitutional amendment and had adversely affected fishermen's rights. Similar efforts were made by other leaders, including appeals to the Supreme Court.
• Despite Tamil Nadu's persistent demands, the Union government's stance has remained unchanged. It asserts that since Katchatheevu has been under dispute historically, no territorial or sovereignty claims were ceded.
• While there is vocal demand for Katchatheevu's retrieval, practical challenges hinder such efforts. The Union government has pointed out that revisiting Katchatheevu's status would require drastic measures, potentially leading to diplomatic complexities or conflict.

INDIANS AND H1-B

• The H-1B visa program for skilled workers was introduced in 1990. These visas are initially issued for three years but can be extended to a maximum of six years.
• Since 2004, the issuance of new H-1B visas has been capped at 85,000 annually, with 20,000 reserved specifically for foreign students who hold master’s degrees or higher from U.S. universities.
• This cap, however, does not apply to certain entities like universities, think tanks, and other non-profit research organizations, allowing additional visas to be issued beyond the limit.
• Applicants for H-1B visas must have a job offer from a U.S.-based sponsor, such as a company or institution. The U.S. government also grants extensions for individuals already working under H-1B visas.
• During the fiscal year 2023 (October 2022 to September 2023), over 386,000 H-1B applications were approved. This figure includes nearly 119,000 new visas and approximately 267,000 extensions.
• The total number of approvals in 2023 reflects a decline from over 474,000 in the previous fiscal year, 2022

 

3. Immigration in US

 

• Immigration remains one of the most divisive political topics in the United States. An October YouGov poll revealed that 14.6% of registered voters considered it the most critical issue in the upcoming election, a significant increase from just 2.1% in 2012.
• During election campaigns, much of the anti-immigration discourse centered on low-skilled labor migration. Beyond its inherent racial undertones, this narrative is driven by the perception that such immigration lowers wages and displaces jobs that might otherwise benefit the American working class.
• This demographic has long struggled with challenges like high unemployment, stagnant wages, inflation, a housing crisis, and other economic difficulties.
• Donald Trump effectively leveraged these concerns, pledging to improve conditions for the average American worker by restricting immigration.
• The current debate echoes many of the same themes as Trump’s rhetoric about Mexicans "stealing American jobs," though the focus has shifted to the immigration of skilled workers competing for higher-paying positions

 

4. Visa for Skilled Workers

 

Source: USCIS

• The H-1B visa program enables U.S. employers to hire foreign workers for roles requiring "a high level of skill" and "at least a bachelor’s degree," as outlined by the U.S. Department of Labor.
• Established in 1990, the program was designed to assist employers in filling roles that demand specialized skills not readily available within the U.S. workforce, allowing qualified foreign individuals to work temporarily in the United States.
• H-1B visas are typically issued for a maximum of six consecutive years. After this period, visa holders must either leave the U.S. for at least 12 months before returning or apply for permanent residency (a Green Card).
• Currently, the program has an annual limit of 65,000 new visas (the regular cap), with an additional 20,000 visas available for applicants holding master’s degrees or higher from U.S. universities. However, not all H-1B applications are subject to this cap, resulting in the total number of approved petitions often exceeding the cap.
• For example, in the fiscal year 2023, the United States Citizenship and Immigration Services (USCIS), under the Department of Homeland Security, approved 118,948 petitions for initial employment and 267,370 petitions for continuing employment.
• Certain applicants, such as those employed by higher education institutions, nonprofit organizations affiliated with such institutions, nonprofit research organizations, or government research entities, are exempt from the annual cap

 

5. Challenges

 

• Indian nationals are the primary beneficiaries of the H-1B visa program, consistently accounting for over 70% of all approved H-1B petitions annually since 2015, according to U.S. government data. Chinese nationals rank a distant second, making up 12-13% of approvals since 2018.
• This significant representation of Indian professionals has drawn the attention of nativist MAGA Republicans, who have extended their anti-immigration rhetoric from low-skilled labor migration by Mexicans and Central Americans to include Indian workers in the tech industry.
• Their argument revolves around the claim that the H-1B program, originally designed to attract exceptional global talent, is being exploited by tech companies to fill lower- to mid-level positions at wages much lower than those expected by American workers.
• While proponents like Elon Musk argue that H-1B visas address a "permanent shortage of excellent engineering talent," critics counter that the issue is not a lack of skilled American workers but that they are deemed "too expensive to hire" by tech firms.
• This critique is supported by data. An analysis of 60,000 H-1B approvals from USCIS in the 2023 fiscal year, conducted by Bloomberg, revealed that nearly 70% of Indian H-1B recipients earned annual salaries below $100,000.
• For comparison, the median salary for IT professionals in the U.S. was $104,420 in May 2023, as reported by the U.S. Bureau of Labor Statistics. Approximately 25% of H-1B approvals for Indian professionals fell within the $100,000 to $150,000 salary range, while only 5% exceeded $150,000

 

6. Way Forward

 

H-1B visas play a vital role in addressing the skills gap in the United States, with wages largely determined by market forces. Globally, Chinese and Indian professionals lead in STEM fields. According to data from the Center for Security and Emerging Technology (CSET) in 2020, China produced 3.57 million STEM graduates, and India followed with 2.55 million, far surpassing the United States, which had 820,000 STEM graduates

 

 

 

For Prelims: H-1B visa, United States, U.S. Citizenship and Immigration Services, STEM fields, lottery system,  For Mains:  1. What are the implications of the new H-1B visa regime for US-India relations? Discuss the measures can the Indian government take to support Indian IT workers affected by the new H-1B visa regime. (250 Words)

 

 

Previous Year Questions   1. Consider the following statements: (UPSC 2019) 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Which of the statements given above is/are correct? A. 1 only     B. 2 and 3 only           C. 3 only           D. 1, 2 and 3   Answer: A   2. Which of the following statements about town planning in British India in early 19th century is/are correct? (UPSC CAPF 2018)  1. The funds for town improvement were also raised through public lotteries. 2. The threats of epidemics gave an impetus to town planning in the early decades of 19th century. Select the correct answer using the code given below A.1 only          B. 2 only          C. Both 1 and 2          D. Neither 1 nor 2   Answer: C

 

Source: Indianexpress

 

 

OTHER BACKWARD CLASSES

 

1. Context

The Telangana government has approached the Supreme Court against a State High Court decision to stay two Government Orders that enhanced the Other Backward Classes (OBC) quota in seats in municipalities and panchayats to 42%.

 

2. About the sub-categorization of OBCs

• The concept of sub-categorization of OBCs involves creating sub-groups within the larger OBC category for reservation purposes.
• Currently, OBCs are granted 27% reservation in jobs and education under the central government.
• However, there has been a debate over the equitable distribution of these benefits among the various OBC communities.
• Some argue that a few affluent communities within the Central List of OBCs have disproportionately secured the majority of the reservation benefits.
• Creating sub-categories aims to ensure a fairer distribution of representation among all OBC communities.

3. The Rohini Commission's Brief

1. To examine the extent of inequitable distribution of reservation benefits among the OBC castes or communities included in the Central List.
2. To devise a scientific approach for sub-categorization within the OBCs, including defining the mechanism, criteria, norms, and parameters.
3. To identify respective castes, communities, sub-castes, or synonyms in the Central List of OBCs and classify them into their respective sub-categories.
4. To study the Central List of OBCs and rectify any repetitions, ambiguities, inconsistencies, and errors.

• The Commission's progress has faced various challenges, including the absence of data on the population of different communities to compare their representation in jobs and education.
• Initially, the Commission had requested an all-India survey to estimate the caste-wise population of OBCs but later decided against it.
• Additionally, the government has remained silent on the collection of OBC data in the Census, despite demands from OBC groups.

4. The Extent of OBC Recruitment in Central Jobs

• As part of its findings, the Commission analyzed data from the preceding five years on OBC quota-based central jobs and admissions to central higher education institutions.
• It revealed that a disproportionate number of jobs and educational seats went to a small fraction of OBC sub-castes, with 37% of the total OBC communities having no representation in jobs and educational institutions.
• Regarding OBC representation in central jobs, as of March 17, the data showed that 20.26% of Group A to Group C employees were OBCs.
• However, the representation drops to 16.88% in Group A, where the reservation for OBCs is 27%.

Image Source: The Indian Express

5. The Way Forward

• Despite the challenges faced, the Commission has made significant progress, including drafting a report on sub-categorization.
• However, the final report is yet to be submitted. The extended tenure will provide the Commission with additional time to address the complexities of OBC sub-categorization and propose measures to achieve equitable distribution of reservation benefits among all OBC communities.

For Prelims: Rohini Commission, OBCs, Central List For Mains:  1. Discuss the role of the government in addressing the demand for the enumeration of OBCs in the Census and its potential impact on OBC representation and welfare." (250 Words)

 

 

Previous Year Questions   1. Who was appointed as the head of the OBC Sub-categorisation Commission? (Maharashtra Talathi 2019)  A. Justice Geeta Mittal B. Justice Manjula Chellur C. Justice Tahilramani D. Justice G. Rohini   Answer: D   2. Which of the following pairs of list and contents is/are correctly matched? (UPSC CAPF 2019)  1. State list                     Public health and sanitation 2. Union list                  Citizenship, naturalisation and aliens 3. Concurrent list          Legal, medical and other Select the correct answer using the code given below: A. 1 only             B. 1, 2 and 3          C.  2 and 3 only            D.  3 only   Answer: B

 

Source: The Indian Express

 

 

NATIONAL COMMISSION FOR SCHEDULED CASTES (NCSC)

 

 

1. Context

 

National Commission for Scheduled Castes submits Report to President of India The reports contain various recommendations on the issues entrusted to the Commission regarding protection of Constitutional Safeguards of the Scheduled Castes as enshrined in Constitution of India

 

2. National Commission for Scheduled Castes(NCSC)

 

The National Commission for Scheduled Castes (NCSC) is a constitutional body in India established under Article 338 of the Constitution. It was formed in 2004 to safeguard the rights of Scheduled Castes (SCs), formerly known as untouchables, who are among the most disadvantaged communities in India

 The Commission is mandated to investigate and monitor matters related to the constitutional safeguards provided to Scheduled Castes and to inquire into specific complaints regarding the deprivation of their rights.

 

3. National Commission for Scheduled Castes Functions

 

• The National Commission for Scheduled Castes (NCSC) in India performs various functions to safeguard the rights and interests of Scheduled Castes (SCs)

• The commission investigates and monitors the implementation of constitutional and legal safeguards for Scheduled Castes.
• It examines the factors that inhibit the full realization of the rights and safeguards provided to Scheduled Castes
• The NCSC has the authority to inquire into specific complaints and grievances regarding the deprivation of rights or atrocities committed against Scheduled Castes.
• It can summon evidence and witnesses during the inquiry process
• The commission advises the central and state governments on policy matters related to the welfare and development of Scheduled Castes.
• It recommends measures for the effective implementation of constitutional safeguards
• The NCSC reviews the progress of the development and welfare programs designed for Scheduled Castes.
• It suggests measures to ensure that these programs are effectively implemented and reach the targeted beneficiaries
• Ensuring the protection of the rights and interests of Scheduled Castes as enshrined in the Constitution of India.
• Taking steps to prevent atrocities and discrimination against Scheduled Castes
• Overseeing the implementation of reservations in educational institutions, employment, and other spheres for Scheduled Castes.
• Addressing issues related to the proper implementation of reservation policies
• Regularly reviewing the working of various constitutional safeguards and provisions for Scheduled Castes.
• Recommending amendments to existing laws or the enactment of new laws to improve the status and condition of Scheduled Castes
• The commission submits periodic and special reports to the President of India and to the Parliament on its findings, recommendations, and the overall status of Scheduled Castes

4. National Commission for Scheduled Castes Composition

 

The key features of the composition are as follows:

1. Chairperson: The Chairperson is the head of the NCSC and is appointed by the President of India. The Chairperson is typically a person who has held a high judicial office or has wide experience in matters related to the Scheduled Castes.

2. Vice-Chairperson: The Vice-Chairperson, like the Chairperson, is appointed by the President of India. The Vice-Chairperson assists the Chairperson in carrying out the functions of the commission.

3. Nine other Members: Appointed by the President on the recommendation of the Chairperson.

Current Composition (as of February 17, 2024):

• Chairperson: Shri Vijay Sampla
• Vice-Chairperson: Currently Vacant
• Members:
  • Smt. Sunita Kumari
  • Shri Mukesh Kumar Arya
  • Smt. Paramjit Kaur Kainth
  • Shri Parameswar Naik
  • Smt. Rama Devi
  • Shri Raj Kumar Valmiki
  • Shri Suresh Chandra Ram
  • Shri Shyam Sundar Ram
  • Shri Ishwar Singh

5.National Commission for Scheduled Castes History

 

The National Commission for Scheduled Castes (NCSC) has a rich history intertwined with the fight for equality and social justice for Scheduled Castes (SCs) in India. Here's a glimpse into its journey:

Early Beginnings (Pre-1987):

• 1950: The Constitution of India comes into effect, establishing Article 338 mandating the creation of a Special Officer for Scheduled Castes and Scheduled Tribes
• 1950-1987: The Commissioner for Scheduled Castes and Scheduled Tribes, a single-member body, investigates complaints of atrocities and discrimination against SCs and STs.

Evolution into a Multi-Member Commission (1987-Present):

• 1987: Recognizing the need for a more robust mechanism, the 65th Amendment to the Constitution replaces the single-member commission with a multi-member National Commission for Scheduled Castes and Scheduled Tribes (NCST).

• 1990: The NCST is bifurcated into two separate commissions: NCSC for SCs and the National Commission for Scheduled Tribes (NCST) for STs. This allows for focused attention on the specific needs of each community.

• 1992: The first NCSC is constituted with Shri S.H. Ramdhan as the Chairperson.

• Since then: The NCSC has been reconstituted several times, with each Chairperson and Commission contributing to its evolving mandate and achievements.

6.Way Forward

 

As per mandate given to the National Commission for Scheduled Castes under Article 338 of the Constitution of India, it is the duty of the Commission to present to the President annually & at other times as the Commission may deem fit, reports upon the working of the Constitutional Safeguards of the Scheduled Castes. The reports may include recommendation for the measures required to be taken by the Union and the States for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the Scheduled Castes

 

For Prelims: National Commission for Scheduled Castes, Article 338 of the Constitution of India For Mains: GS II - Indian Polity

Previous Year Questions 1. In 2001, RGI stated that Dalits who converted to Islam or Christianity are not a single ethnic group as they belong to different caste groups. Therefore, they cannot be included in the list of Scheduled Castes (SC) as per Clause (2) of Article 341, which requires a single ethnic group for inclusion. (UPSC CSE Mains GS2 2014) 2. Whether the National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine. (UPSC CSE Mains GS2 2018)

Source: Pib

 

 

PERIODIC LABOUR FORCE SURVEY (PLFS)

 

 

1. Context

According to the Periodic Labour Force Survey (PLFS) for the year 2021-22, the unemployment rate in Bihar is 5.9%, higher than the national average of 4.1%. For the 15-29 age group, the unemployment rate stands at 20.1%, against the national average of 12.4%.

2. About The Periodic Labour Force Survey (PLFS)

• The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
• The survey is conducted annually in all the states and union territories of India.
• The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
• The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
• Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
• This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.

 

3. Data Collection Methods in PLFS

• The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
• In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
• The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
• Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
• The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods. 

4. Latest findings of the Report

Unemployment Rate (UER)

• The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
• As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
• Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one. 

Labour Force Participation Rate (LFPR)

• The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
• However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
• As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
• As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.

 

LFPR for women

• This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
• The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.

Worker Population Rate

• Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
• As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
• The WPR is the percentage of persons employed among the persons in the population.
• Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
• This metric too has been going up and especially noteworthy are the two discrete
  step-ups in 2019-20 and 2022-23.

WPR among women

This metric throws light on the WPR for women to understand what’s leading to the spike in overall WPR. Again, the WPR for women has been going up but two main spikes have been in 2019-20 and 2022-23.

Monthly earnings

The PLFS reports also provide a sense of how much people earn in different types of jobs.

While it is true that incomes have broadly gone up after falling during Covid the main takeaway from this data emerges when one compares how little have monthly incomes changed over the past 6 years, especially in the face of a sharp rise in inflation. To be sure, since late 2019, annual consumer inflation has always been above the RBI’s target of 4%.

 

Distribution of workers

To accurately make sense of more and more people working, it is important to know not just what they earn but also what kind of work they do. For this, we look at data collected over the usual status by PLFS. Table 3 alongside gives the details of the three main classifications: self-employment, casual labour (say a construction worker) and regular salaried job. Self-employed has two sub-categories:

(i) own account worker and employer and

(ii) unpaid helper in household enterprises. 

 

The data shows that self-employment has risen and jobs in the other two categories have fallen in proportion. It is also noteworthy that self-employment among women is the key driver for this overall trend. 

 

5. Key Trends in PLFS 2022-23

• Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
• However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
• Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
• Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
• In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.

6. The WayForward

While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.

 

For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio For Mains: 1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)

 

Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019) Assertion (A): The labour force participation rate is falling sharply in recent years for females in India. Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education. Select the correct answer from the codes given below: Codes: A. Both (A) and (R) are true and (R) is the correct explanation of (A) B. Both (A) and (R) are true and (R) is not the correct explanation of (A) C. (A) is true, but (R) is false D. (A) is false, but (R) is true     2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020) 1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India 2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector 3. One-fourth of rural female workers in India were engaged in the agriculture sector Select the correct answer using the code given below: A. 2 only       B. 1 and 2 only            C. 1 and 3 only           D. 1, 2 and 3     3. Disguised unemployment generally means (UPSC 2013) (a) large number of people remain unemployed (b) alternative employment is not available (c) marginal productivity of labour is zero (d) productivity of workers is low   4.  Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false. B. (A) is false, but (R) is true. C. Both (A) and (R) are true, but (R) is not a correct explanation of (A). D. Both (A) and (R) are true, but (R) is the correct explanation of (A). Answers: 1-C, 2-B, 3-C, 4-D Mains 1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023)

Source: The Indian Express