Question : Jobloss in IT Sector

(a) whether it is a fact that automation in industry may result in job losses and retrenchment of factory workers;

(b) if so, the details thereof along with the estimated job losses/ gains in low and high skilled IT industry in the country; and

(c) whether the maximum number of workers who have lost their jobs are from Uttar Pradesh and if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) to (c): According to the World Development Report (WDR) 2016 of World Bank based on technological feasibility, 69% of jobs in India are susceptible to automation.

According to National Association of Software and Services Companies (NASSCOM), the industry is estimated to employ nearly 3.9 million people in 2017, an addition of approximately 1,70,000 people over FY2016. The IT-ITES industry will remain a major net hirer in FY 2017-18. Companies are re-aligning and re-adjusting themselves to the changing business scenario and adjusting their workforce accordingly. Additionally, technologies such as advanced robotics and automation are changing job roles across industries.



The Government uses results of surveys conducted by Ministry of Statistics & Programme Implementation and Labour Bureau to estimate levels of employment and unemployment. To assess the effect of economic slowdown on employment in India in selected labour-intensive and export-oriented sectors namely textiles including apparels, metals, gems & jewellery, automobiles, transport, IT/BPO, leather and handloom/power loom, Labour Bureau under Ministry of Labour & Employment is also conducting Quick Quarterly Surveys on employment and unemployment in selected labour intensive and export oriented sectors. The coverage of the quarterly Quick Employment Survey has also been enhanced during 2016 with more industries/sectors and as per the results of the Survey during 2016, the net addition of jobs in these sectors is estimated to be 2.31 lakhs.

In IT/BPO sector, there has been estimated increase in employment of 0.22 lakhs during July – December, 2016.

Government runs various employment generation schemes for various beneficiaries like Prime Minister’s Employment Generation Programme (PMEGP) run by Ministry of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) scheme run by Ministry of Rural Development and Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) run by Ministry of Housing & Urban Poverty Alleviation.

A new Scheme “Pradhan Mantri Rojgar Protsahan Yojana” has been initiated by the Ministry of Labour and Employment in the year 2016-17 for incentivising industry for promoting employment generation with the allocation of Rs. 1000 crore. Under this scheme employers would be provided an incentive to enhance employment where the Government will pay the employer’s contribution of 8.33% EPS made to new employees. In textiles (apparel and made-ups) sector, the Government will also pay the 3.67% EPF contribution of employers in addition. Government has announced a booster package of Rs 6000 crores for the textile sector which is an employment intensive sector.

Government has also implemented the National Career Service having a portal (www.ncs.gov.in) for online registration and posting of jobs for job-seekers and provide other employment related services.
*****

Download PDF Files