Lok Sabha Question No. 2522 (UNSTARRED), answered on 2017-07-31
Subject: Jobloss in IT Sector
Ministry: LABOUR AND EMPLOYMENT
Asked by: RAJESH KUMAR DIWAKAR

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 2522

TO BE ANSWERED ON 31 TH  JULY, 2017

## JOBLOSS IN IT SECTOR

## 2522.  SHRI RAJESH KUMAR DIWAKER:

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

- (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

## 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 YojanaNational 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.

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