Question : Impact of GST on Job Market

(a) the details and the number of jobs created in the organized and unorganized sectors during each of the last three years;

(b) the details of sectors which have seen a boost in employment generation since the implementation of GST;

(c) the details of the nature and number of jobs created in those sectors, sector-wise;

(d) the details of sectors which have seen a decrease in employment since implementation of GST along with the nature and number of jobs decreased; and

(e) the steps taken/being taken by the Government to boost employment generation in various sectors in the country and the achievements therefrom during the last three years?

Answer given by the minister

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a) to (c): Government conducts surveys on periodic basis to assess the status of Employment and Unemployment. As per the Employment and Unemployment Surveys(EUS) conducted by Labour Bureau, Ministry of Labour & Employment, the estimates of Worker Population Ratio (WPR) based on Usual and Principal Subsidiary Status (UPSS) approach for persons aged 15 years and above which indicates the level of employment are as follows:


Year Worker Population Ratio under UPSS approach for persons aged 15 years and above
Rural Urban (Rural+ Urban)
Total
2012-13 53.6 44.2 51.0
2013-14 57.1 45.5 53.7
2015-16 53.9 41.8 50.5

Labour Bureau has also been conducting Quarterly Quick Employment Surveys in eight selected labour intensive and export-oriented sectors namely textiles, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handloom/ powerloom. The job growth in these 8 sectors from 2013 to 2015 is given at Annex-I
The coverage of the quarterly Quick Employment Survey has since been enhanced during 2016 with more industries/sectors. As per the results of the three quarterly surveys conducted during 2016, the estimated net addition of jobs as on 1st January, 2017 over the 1st July, 2016 was 2.31 lakh workers. The details are at Annex-II.
(d): According to Ministry of Finance, Goods and Services Tax (GST) has provided a significant opportunity to improve economic growth momentum by removing barriers to trade, business and related economic activities. The Goods and Services Tax (GST) was rolled out from 1st July, 2017 and it is too early to assess its impact on employment.

(e): The Employment generation coupled with improving employability has been the priority concern of the Government. The Government has taken various steps in this direction like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhayaya Grameen Kaushalya Yojana (DDUGKY) and Deendyal Antodaya Yojana-National Urban Livelihood Mission (DAY-NULM). The detail of employment generated in these schemes is given below:






Employment Generated
Schemes/Year 2014-15 2015-16 2016-17
PMEGP
(Person in lakh) 3.58 3.23 4.08
MGNREGS
(Persondays in crore) 166.19 235.14 235.77
DDU-GKY
(Person in lakh) 0.54 1.35 0.85
DAY-NULM
(Person in lakh) 0.99 0.93 2.36

A new Scheme “Pradhan Mantri Rojgar Protsahan Yojana” has been launched by the Government in the year 2016-17 for incentivising industry for promoting employment generation. 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 to paying the 8.33% EPS contribution.

Ministry of Labour & Employment is implementing National Career Service Project (NCSP) for transforming the employment services in the country using technology to bring more employment opportunities to jobseekers.

The Financial progress in the last three years is at Annex- III

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