Lok Sabha Question No. 2204 (UNSTARRED), answered on 2018-01-01
Subject: Impact of GST on Job Market
Ministry: LABOUR AND EMPLOYMENT
Asked by: GANESH SINGH, KIRRON KHER

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK  SABHA

## UNSTARRED QUESTION NO. 2204

TO BE ANSWERED ON 1 ST  JANUARY, 2018

## IMPACT OF GST ON JOB MARKET

2204.  SHRI GANESH SINGH: SHRIMATI KIRRON KHER:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (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

## 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   | Worker Population Ratio under UPSS approach for persons aged 15 years and above   | 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          | Employment Generated   | Employment Generated   | 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

*****

Annex-I

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (c)  OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO.  2204  FOR  01-01-2018  REGARDING IMPACT OF GST ON JOB MARKET.

JOB  GROWTH  IN  8  MAJOR  SECTORS  AS  PER  QUARTERLY  QUICK EMPLOYMENT SURVEYS CONDUCTED BY LABOUR BUREAU.

(in lakhs)

| Sl. No.           | Industry/ Group     |   Jan,13 to Dec,13 |   Jan,14 to Dec,14 |   Jan,15 to Dec,15 |   Total |
|-------------------|---------------------|--------------------|--------------------|--------------------|---------|
| 1                 | 2                   |               3    |               4    |               5    |    6    |
| 1                 | Textiles            |               2.86 |               1.41 |               0.72 |    4.99 |
| 2                 | Leather             |               0.44 |              -0.07 |              -0.08 |    0.29 |
| 3                 | Metal               |              -0.35 |               0.74 |               0.37 |    0.76 |
| 4                 | Automobile          |               0.16 |               0.25 |              -0.08 |    0.33 |
| 5                 | Gems & Jewellery    |               0.09 |               0.11 |              -0.19 |    0.01 |
| 6                 | Transport           |              -0.09 |              -0.11 |              -0.04 |   -0.24 |
| 7                 | IT/BPO              |               1.09 |               1.93 |               0.76 |    3.78 |
| 8                 | Handloom/ Powerloom |              -0.02 |              -0.05 |              -0.11 |   -0.18 |
| TOTAL (Year wise) | TOTAL (Year wise)   |               4.18 |               4.21 |               1.35 |    9.74 |

*Source:Labour Bureau

Annex-II STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (c)  OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO.  2204    FOR    01-01-2018  REGARDING IMPACT OF GST ON JOB MARKET. SECTOR  WISE  CHANGE  IN  EMPLOYMENT  IN  EIGHT  SECTORS  AS  PER QUARTERLY  QUICK  EMPLOYMENT  SURVEYS  CONDUCTED  BY  LABOUR BUREAU.

( in lakhs)

| S.No.   | Sector         |   1st Jul over 1st Apr'16 |   1st Oct over 1st Jul'16 |   1st Jan'17 over 1st Oct'16 |   Total |
|---------|----------------|---------------------------|---------------------------|------------------------------|---------|
| 1       | Manufacturing  |                     -0.12 |                      0.24 |                         0.83 |    0.95 |
| 2       | Construction   |                     -0.23 |                     -0.01 |                        -0.01 |   -0.25 |
| 3       | Trade          |                      0.26 |                     -0.07 |                         0.07 |    0.26 |
| 4       | Transport      |                      0.17 |                      0    |                         0.01 |    0.18 |
| 5       | Accomodation & |                      0.01 |                     -0.08 |                         0    |   -0.07 |
| 6       | IT/BPO         |                     -0.16 |                      0.26 |                         0.12 |    0.22 |
| 7       | Education      |                      0.51 |                     -0.02 |                         0.18 |    0.67 |
| 8       | Health         |                      0.33 |                      0    |                         0.02 |    0.35 |
|         | Total          |                      0.77 |                      0.32 |                         1.22 |    2.31 |

*Source:Labour Bureau

## Annex-III

STATEMENT REFERRED TO IN  REPLY  TO  PART  (e)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 2204 FOR 01-01-2018 REGARDING IMPACT OF GST ON JOB MARKET.

## FINANCIAL PROGRESS IN THE LAST THREE YEARS (Rs. in lakh)

| Scheme/Year             |   2014-15 |   2015-16 |   2016-17 |
|-------------------------|-----------|-----------|-----------|
| PMEGP (Margin money     |  112254   |  102006   |  128094   |
| MGNREGA(Fund released)  |   32476.9 |   36644.8 |   48387.2 |
| DDU-GKY(Fund released)  |   56863   |   57963.3 |   78088.6 |
| DAY-NULM(Fund released) |   67214.2 |   23972.3 |   28970.6 |

*  PMEGP-        Prime Minister's Employment Generation Programme.

MGNREGA-  Mahatma Gandhi National Rural Employment Guarantee Act.

DDU-GKY-    Pt Deen Dayal Upadhyaya Grameen Kaushlya Yojana.

DAY-NULM-  Deendayal Antyodaya Yojana-National Urban Livelihood Mission.