Thursday 14 July 2011

Declining Fulltime Employment and Its Future Implication in Manipur

By Marchang Reimeingam
Published: The Sangai Express, 5-6th April 2009

The objective of all the economies including the state of Manipur is to achieve full employment. But unfortunately, fulltime employment (main workers) has declined significantly in the recent years at the cost of a significant increase of part-time employment (marginal workers). Although the prevalence is not uniform across the rural and urban areas that leads to a variation in the rate of economic participation and employment growth. The study begins by examining the overall economic participation rates generally called as workforce participation rate (WPR). The study is based on census data; and is important to note that data of 2001 excludes three sub-divisions of Senapati district. During 1991-2001 the WPR – ratio of workers and population; workers includes both main and marginal – of the state has increased from 47.12 to 49.25 percent for rural males, declined from 43.22 to 41.53 percent for rural females, increased from 40.33 to 44.94 percent for urban males, and from 27.88 to 32.25 percent for urban females. Its increase is partly due to the definitional change that had taken placed and partly due to an increase of marginal workers among other reasons.
During the same period, the proportion of fulltime/main workers to the total workers has considerably declined from 97.73 to 80.43 percent for rural males and from 97.43 to 85.22 percent for urban males. The declined is sharper in case of females both in rural and urban areas. For females, it has declined from 86.08 to 53.68 percent in rural areas and from 74.69 to 58.77 percent in urban areas. The rate of decline is sharper in rural than urban areas. On the other hand, the proportion of marginal workers has increased significantly for both males and females and in both the areas. It has increased from merely 2.27 to 19.57 percent for rural males, 13.92 to 46.32 percent for rural females, 2.57 to 14.78 percent for urban males, and from 25.31 to 41.23 percent for urban females. The decline of main workers or the increase of marginal workers could largely explain by the unavailability of employment opportunities for full time and due to the deterioration of working avenues; apart from the definitional change which is partly a reason. This situation pertains to a low household income which is insufficient to sustain. So it further demands an extra hand to meet the needs of goods and services therefore marginal workers has significantly increased.
Interestingly, the annual growth rate of employment is greater than the growth rate of population during 1991-2001. For rural male employment is growing faster at 2.14 percent annually than population at 1.70 percent. Similarly, for urban males, employment is growing at higher rate at 2.22 percent than the growth rate of population at 1.13 percent. In case of rural females, employment is growing at lower rate at 1.46 percent than population growth at 1.86 percent. However, for urban females, employment is growing faster at 2.93 percent than population at 1.47 percent. The higher growth rate of employment is contributed largely by a very significant growth of marginal workers; which further implies that there is a wide existence of underemployment. It would not be incorrect to mention the existence of disguised employment even among the main workers. While the higher growth rates of workers than population sounds impressive but the disintegrated data of main and marginal workers threatens the future labour demand because this higher growth is at large contributed, as mentioned earlier, by the marginal workers. Also the increase in full time enrolment of higher education but due to the insufficiency and inadequacy of economic subsistence oblige to work as part time/marginal workers thereby raising the growth rates of marginal workers.  Moreover, the unavailability of full time work induces in an engagement as marginal workers. Marginal workers are growing at high rates as compared to the growth of main workers. The annual growth rates of marginal workers are 23.68, 13.49, 19.70 and 7.81 percent for rural males, rural females, urban males and urban females respectively during the same period. This suggests a low production and income resulting to the inability to initiate further investment for future returns.
During 1991-2001, the growth rate of main workers is substantially low implying the non generation/availability of full time employment. The annual growth rates are 0.19 and 0.88 percent for rural and urban males respectively. For females, it is growing negatively at –3.26 percent in rural areas; however, in urban areas it is growing at 0.53 percent. Marginal workers are growing much faster in rural areas; while main workers are growing faster in urban areas. This is likely to continue in the near future as the economy of Manipur is buoyant. The continuation of this trend will further deteriorate employment situation in the state not only in terms of economic participation but also in terms of underemployment. Employment patterns and its structure is one of the indicators of existing economic condition. The improvement of economic condition, therefore, is a necessary condition to raise employment opportunities and vice versa. Further, the prevailing trend of casualisation, contractualisation and informalisation of labour although creates job; however, underemployment is seemingly increasing as the supply of labour adjust with the system of shrinking organized sector job. This induces to move towards the so called marginal work.
Further, the comparison between the growth rates of main workers and population shows a significantly lower growth rates for main workers than population implying an increase in the dependency ratios or burden in terms of social and economic responsibility.
Planners and policy makers need to generate more employment avenues so as to absorb the increasing supply of labour because the delay in its deliverance increases the loss in productions and the consequences of unemployment particularly among the youth will result destructions in a society. The increasing educational policy of accommodation in a higher level of education to curb unemployment in short run is bewildered when unable to deliver their job aspirations in accordance with the investment made in acquiring knowledge and skill in long run. Therefore, it would be wise to counsel to study in job oriented courses that are specifically related to local needs, environment and conditions.
In conclusion, WPR has increased in general. Employment is growing faster than population due to a significant increased among the marginal workers. Fulltime employment has considerably declined; however part-time employment has increased. The likelihood to continue this trend in near future is very high, which is a feel-bad-factor, due to an inadequate and inefficient development policies and implementation as Manipur’s economy remains buoyant.
-------------------------------------------------------------------------------------

For citation: Marchang Reimeingam, Declining Full-time Employment and its Future Implication in Manipur, The Sangai Express, Imphal, 5-6th April 2009.