Lok Sabha Question No. 1555 (UNSTARRED), answered on 2018-03-05
Subject: Impact of GST on Job Market
Ministry: LABOUR AND EMPLOYMENT
Asked by: ANSHUL VERMA

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK  SABHA

## UNSTARRED QUESTION NO. 1555 TO BE ANSWERED ON 5 TH  MARCH, 2018

## IMPACT OF GST ON JOB MARKET

1555.  DR. ANSHUL VERMA:

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

- (a) the  details  and  the  number  of  jobs  created  in  the  organised  and unorganised sectors after GST (Goods and Services Tax) implementation in the country;
- (b) the steps taken by Government to improve employability of the youth of the country and to provide them jobs during the last three years;
- (c) whether  GST  will  affect  the  employment  scenario  of  the  country  in different sectors of the economy; and
- (d) if so, the details thereof, sector-wise?

## ANSWER

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

(a)  to  (d)  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 net addition of jobs as on 1 st  July, 2017 over the 1 st  July, 2016 was 4.80 lakh. The details are at Annex-II. 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  YojanaNational Urban Livelihood M ission (DAY-NULM). The detail of employment generated in these schemes is at Annex -III A  Scheme  called  '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. 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 1 st  July, 2017. It is expected that this will lead to in  employment generation  opportunities  for  the  vast  pool  of  young  population  of  the country. It is not possible to ascertain the impact of GST on employment greater economic  growth  and  consequent  increasing right now.

*****

Annex-I

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (d)    OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO.  1555  FOR  05-03-2018  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  (d)    OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO.  1555    FOR    05-03-2018  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 |   1st Apr'17 over 1st Jan'17 |   1st Jul'17 over 1st Apr'17 |   Total change in employment |
|---------|----------------------------|---------------------------|---------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
| 1       | Manufacturing              |                     -0.12 |                      0.24 |                         0.83 |                         1.02 |                        -0.87 |                         1.1  |
| 2       | Construction               |                     -0.23 |                     -0.01 |                        -0.01 |                         0.02 |                         0.1  |                        -0.13 |
| 3       | Trade                      |                      0.26 |                     -0.07 |                         0.07 |                         0.29 |                         0.07 |                         0.62 |
| 4       | Transport                  |                      0.17 |                      0    |                         0.01 |                         0.03 |                        -0.03 |                         0.18 |
| 5       | Accommodation & Restaurant |                      0.01 |                     -0.08 |                         0    |                         0.03 |                         0.05 |                         0.01 |
| 6       | IT/BPO                     |                     -0.16 |                      0.26 |                         0.12 |                         0.13 |                         0.02 |                         0.37 |
| 7       | Education                  |                      0.51 |                     -0.02 |                         0.18 |                         0.02 |                         0.99 |                         1.68 |
| 8       | Health                     |                      0.33 |                      0    |                         0.02 |                         0.31 |                         0.31 |                         0.97 |
|         | Total                      |                      0.77 |                      0.32 |                         1.22 |                         1.85 |                         0.64 |                         4.8  |

*Source:Labour Bureau

## Annex-III

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (d)    OF  THE  LOK SABHA  UNSTARRED  QUESTION  NO.  1555    FOR    05-03-2018  REGARDING IMPACT OF GST ON JOB MARKET.

| Employment Generated                                             | Employment Generated   | Employment Generated   | Employment Generated           |
|------------------------------------------------------------------|------------------------|------------------------|--------------------------------|
| Schemes/Year                                                     | 2015-16                | 2016-17                | 2017-18                        |
| Estimated employment generated under PMEGP (No. of Persons)      | 3,23,362               | 4,07,840               | 2,08,576 (till 31 st Dec,2017) |
| Persondays Generated under MGNREGS (Persondays in lakh)          | 23,515                 | 23,583                 | 16,029 (till 11 Dec,2017)      |
| Candidates placed in jobs after training DDU-GKY (No.of Persons) | 1,34,744               | 84,900                 | 64,967 (till Dec,2017)         |
| Skill Trained Persons given Placement DAY- NULM (No.of Persons)  | 33,664                 | 1,51,901               | 69,255 (till Nov,2017)         |