Lok Sabha Question No. 4141 (UNSTARRED), answered on 2016-12-12
Subject: Human Capital Index
Ministry: LABOUR AND EMPLOYMENT
Asked by: HUKUM SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 4141 TO BE ANSWERED ON 12 TH  DECEMBER, 2016

## HUMAN CAPITAL INDEX

## 4141.   SHRI HUKUM SINGH:

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

- (a) whether  India  has  been  ranked  very  low  on  a  world-wide  Human  Capital Index  which  measures  country's  ability  to  nurture,  develop  and  deploy talent for economic growth;
- (b) if  so,  the  details  thereof  and  reasons  therefor  along  with  the  corrective measures taken/being taken to improve the position;
- (c) whether the country's rating on labour force participation is also very low due to large employment gender gaps, if so, the details thereof; and
- (d) the corrective steps being taken in this regard?

## ANSWER

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

(a) to (d): The World Economic Forum brings out a Human Capital Report which ranks  countries  on  the  basis  of  a  Human  Capital  Index  that  captures  the complexity  of  education,  employment  and  workforce  dynamics.  According  to this  report,  India  has  the  following  composite  rankings  covering  various aspects on education, economic participation, skills, etc.

| Age Group    |   Rank |   Overall |
|--------------|--------|-----------|
| 0-14         |     62 |       105 |
| 15-24        |    106 |       105 |
| 25-54        |    119 |       105 |
| 55-64        |    120 |       105 |
| 65 and above |    119 |       105 |

Similarly, India's ranks on other parameters are:

|                                   |   Rank |
|-----------------------------------|--------|
| Youth Literacy                    |    103 |
| Gender gap                        |    121 |
| Quality of Education System       |     39 |
| Staff Training                    |     46 |
| Ease of finding Skilled Employees |     45 |

According to the Employment and Unemployment Surveys conducted by Labour Bureau, the labour force participation rate for 15 years and above during the last few years is as follow:

## Labour Force Participation Rate (LFPR) 15 Years & Above - All India (in %)

| Year    | Rural+Urban   | Rural+Urban   | Rural+Urban   |         |
|---------|---------------|---------------|---------------|---------|
|         | Male          | Female        | Transgender   | Persons |
| 2011-12 | 77.9          | 30.0          | -             | 55.4    |
| 2012-13 | 77.2          | 26.5          | -             | 53.1    |
| 2013-14 | 75.7          | 31.1          | -             | 55.6    |
| 2015-16 | 75.5          | 27.4          | 48.8          | 52.4    |

The  decline  in  female  labour  force  participation  rate  may  be  attributed  to factors like increase in level of income in rural areas due to increase in real wages, increased educational attendance and higher level  of  participation  in education  and  insufficient  formal  wage  employment  opportunities  etc.  The Female Labour force participation rates in other countries as compiled by ILO are given at Annex-I.

The Government has taken several initiatives to improve the employability of youth including women. A new Ministry of Skill Development and Entrepreneurship has been established to coordinate the skill activities in 20 Ministries running skill development schemes across 70 sectors. Government has 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.  Government  has  also  taken  measures  through schemes such as National Rural Livelihood Mission, National Urban Livelihood Mission  etc.  will  enhance  the  skill  potential  of  rural  and  urban  females  and make them employable. Labour laws have provisions for organizing child care centers  for  the  benefit  of  women  workers  like  The  Factories  Act,  1948,  the Beedi & Cigar Workers (Conditions of Employment) Act, 1966 and the Building and other Construction Workers (Regulation of Employment and conditions of Service) Act, 1996. The Mines Crèche Rules, 1966 provide for establishment of crèches  for  the  benefit  of  women  workers.  The  Plantation  Labour  Act,  1951 provides that the women workers be provided time-off for feeding children and Mahatma Gandhi National Rural Employment Guarantee Act, 2005 also provides for child care facilities at worksite.

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## Annex-I

Statement referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No 4141 due for reply on 12-12-2016.

## Female Labour force participation rate in other countries

| Country                   |   Female Labour Force Participation Rate (in percent) |   Female Labour Force Participation Rate (in percent) |   Female Labour Force Participation Rate (in percent) |
|---------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
|                           |                                                2005   |                                                2010   |                                                2012   |
| Afghanistan               |                                                  16.4 |                                                  16.5 |                                                  17.5 |
| Australia                 |                                                  57   |                                                  58.7 |                                                  58.8 |
| Bangladesh                |                                                  48.1 |                                                  42   |                                                  42.4 |
| Brazil                    |                                                  59.1 |                                                  57.6 |                                                  56.1 |
| Canada                    |                                                  60.9 |                                                  61.8 |                                                  61.6 |
| China                     |                                                  66.9 |                                                  63.7 |                                                  63.8 |
| Egypt                     |                                                  20.5 |                                                  22.7 |                                                  22.1 |
| France                    |                                                  50.1 |                                                  50.9 |                                                  51   |
| Germany                   |                                                  50.6 |                                                  52.8 |                                                  53.7 |
| India                     |                                                  36.8 |                                                  28.6 |                                                  26.8 |
| Indonesia                 |                                                  50   |                                                  51.9 |                                                  51.2 |
| Iran, Islamic Republic of |                                                  19.4 |                                                  16   |                                                  16.1 |
| Israel                    |                                                  55.4 |                                                  57.1 |                                                  58   |
| Italy                     |                                                  37.8 |                                                  37.8 |                                                  39.1 |
| Japan                     |                                                  48.4 |                                                  49.4 |                                                  48.2 |
| Korea, Republic of        |                                                  49.5 |                                                  49.3 |                                                  49.8 |
| Macau, China              |                                                  59   |                                                  65.5 |                                                  65.5 |
| Malaysia                  |                                                  44.2 |                                                  43.8 |                                                  46.6 |
| Mexico                    |                                                  41   |                                                  43.8 |                                                  45.1 |
| Myanmar                   |                                                  75.4 |                                                  75.8 |                                                  75.6 |
| Nepal                     |                                                  80.4 |                                                  79.8 |                                                  79.7 |
| New Zealand               |                                                  60.3 |                                                  61.5 |                                                  62.1 |
| Pakistan                  |                                                  19.3 |                                                  23.9 |                                                  24.1 |
| Philippines               |                                                  49.8 |                                                  50.2 |                                                  50.5 |
| Portugal                  |                                                  55.4 |                                                  55.8 |                                                  54.6 |
| Saudi Arabia              |                                                  17.5 |                                                  18.3 |                                                  20.1 |
| South Africa              |                                                  46.7 |                                                  43.8 |                                                  44.6 |
| Spain                     |                                                  45.9 |                                                  51.4 |                                                  52.5 |
| Sri Lanka                 |                                                  34.4 |                                                  34.6 |                                                  32.9 |
| Turkey                    |                                                  23.4 |                                                  27.6 |                                                  29.4 |
| United Kingdom            |                                                  54.9 |                                                  55.8 |                                                  56   |
| United States             |                                                  58.3 |                                                  57.6 |                                                  56.7 |

Source: The Key Indicators of the Labour Market (KILM) by the ILO

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