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Unorganized Labor Trends in India-ILO Report

The International Labor organization in its report global employment trends 2010 recorded a rise in vulnerable employment in South Asia through 2009 from 76.9% of total employment in 2008 to 78.6% by the third quarter of 2009. In India informal employment is much higher than that in other equally poor countries; it is growing as a proportion of total employment.

According to ILO vulnerable population is often characterized by inadequate earnings, low productivity and difficult conditions of work that undermine workers fundamental rights.

By Indian standards the size of the informal sector is even greater. Defining the unorganized sector as including all unincorporated private enterprises employing less than 10 people, the National Commission for Enterprises in the unorganized sector found that 93% of employment in India as of 1999-2000 was unorganized and that it had grown as a proportion of total employment from the early 90s on.

India’s agriculture industry employing 238 million in 2006-07 is almost 100% informal in employment according to NCEUS report. Manufacturing sector employs the largest share of women unorganized workers. Even India’s service sector is also informal. According to the 63rd round of the National sample survey the average number of workers per service sector enterprise in the country was 2.03% as of 2006-07.just over 1% maintained books of accounts.

The % of service sector enterprise not registered with any agency rose from 61.3% in 2000 to 63.2% in 2006-07.Service sector enterprises employed 3.35 crore persons. The reduction in employment and income opportunities due to global recession pushed an additional 33.7 million in India into poverty in 2009 according to the UN’s dept of Economic and Social Affairs.

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