Lok Sabha Question No. 1136 (UNSTARRED), answered on 2018-12-17
Subject: Outsourcing of Employment
Ministry: LABOUR AND EMPLOYMENT
Asked by: SISIR KUMAR ADHIKARI

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

LOK SABHA UNSTARRED QUESTION NO. 1136 TO BE ANSWERED ON 17.12.2018

## OUTSOURCING OF EMPLOYMENT

## 1136. SHRI SISIR KUMAR ADHIKARI:

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

- (a)  whether  it  is  a  fact  that  outsourcing  of  employment  in  the  country  by different companies including Government and semi-Government departments,  banks  and  public  sector  undertakings  has  reduced  to  50 per cent in last three years period as compared to 2013-14 and if so, the details thereof;
- (b) whether it is also a fact that IT firms of the country continue to register a slowdown trend of getting contract in the first quarter of 2018; and
- (c)  if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the plan/proposal with long term strategy of the Government for generating and/or making productive employment market therein?

## ANSWER

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

- (a) to (c): Though there is no segregated data in respect of outsourcing of employment  in the country, the Labour Bureau's revamped  Quarterly Employment Survey (QES) launched in April, 2016 measures relative change in  employment  situation  over  successive  quarters  in  sizeable  segment  of Non-farm  Industrial  economy.  The  survey  covers  8  major  sectors  which constitute  around  81  percent  of  the  total  employment  of  establishments employing 10 or more workers as per the 6th Economic census, conducted during January, 2013 to April, 2014. The Sixth QES has shown an increase of 64,000  jobs  during  the  April-June  quarter  of  2017.  This  increasing  trend  is observed over and above the four preceding quarters. The details of Sector wise  change  in  employment,  including  the  change  in  IT/BPO  Sector,  is annexed.

Government runs various employment generation schemes like Prime Minister's  Employment  Generation  Programme  (PMEGP)  implemented  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)  implemented  by  Ministry  of  Housing  & Urban Affairs.

Further,  the  schemes  of  PradhanMantri  Mudra  Yojana  (PMMY)    and Pradhan  Mantri  Rojgar  ProtsahanYojana  promote  employment  generation. Pradhan  Mantri  Mudra  Yojana  (PMMY)  provides  collateral  free  loans  by Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to small/micro business enterprises in the non-agricultural sector  to  individuals  to  enable  them  to  setup  or  expand  their  business activities.

Pradhan  Mantri  Rojgar  Protsahan  Yojana  has  been  initiated  by  the Ministry  of  Labour  and  Employment  in  the  year  2016-17  for  incentivizing employers for promoting employment generation. Under this scheme, Government  is  paying  the  entire  employer's  contribution  (12  %  or  as admissible) towards the EPS and EPF for all sectors w.e.f. 01.04.2018 to all eligible new employees and is applicable for all sectors for the next 3 years.

In order to improve the employability of youth, around 22 Ministries/Departments run skill development schemes across various sectors.

The  Government  is  implementing  the  National  Career  Service  (NCS) Project which comprises of a digital portal that provides a nation-wide online platform  for  jobseekers  and  employers  for  job  matching  in  a  dynamic, efficient and responsive manner and has a repository of career content.

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Annexure

Sector-wise details regarding level estimates under first round of Quarterly Employment Survey (QES) and change estimates of employment under 2nd, 3rd, 4th, 5th & 6th QES Rounds are presented in the Table below:

| Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   | Table : Sector-wise Change of Employment                                                                   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) | Level Estimates (1st Round) and Change Estimates of Employment (2nd , 3rd, 4th ,5th& 6th Round) (in lakhs) |
| Sl. No.                                                                                                    | Sector                                                                                                     | Level Estimates as on 1 April, 2016                                                                        | Change Estimates (1 July, 2016 over 1 April, 2016)                                                         | Change Estimates (1 Oct, over 2016, 1 July, 2016)                                                          | Change Estimates (1 Jan, 2017 over 1 Oct, 2016 )                                                           | Change Estimates (1st Apr'17 over 1st Jan'17)                                                              | Change Estimates (1st Jul'17 over 1st Apr'17)                                                              |
| 1                                                                                                          | Manufacturing                                                                                              | 101.17                                                                                                     | -0.12                                                                                                      | 0.24                                                                                                       | 0.83                                                                                                       | 1.02                                                                                                       | -0.87                                                                                                      |
| 2                                                                                                          | Construction                                                                                               | 3.67                                                                                                       | -0.23                                                                                                      | -0.01                                                                                                      | -0.01                                                                                                      | 0.02                                                                                                       | 0.10                                                                                                       |
| 3                                                                                                          | Trade                                                                                                      | 14.45                                                                                                      | 0.26                                                                                                       | -0.07                                                                                                      | 0.07                                                                                                       | 0.29                                                                                                       | 0.07                                                                                                       |
| 4                                                                                                          | Transport                                                                                                  | 5.8                                                                                                        | 0.17                                                                                                       | 0.00                                                                                                       | 0.01                                                                                                       | 0.03                                                                                                       | -0.03                                                                                                      |
| 5                                                                                                          | Accommodation & Restaurant                                                                                 | 7.74                                                                                                       | 0.01                                                                                                       | -0.08                                                                                                      | 0.00                                                                                                       | 0.03                                                                                                       | 0.05                                                                                                       |
| 6                                                                                                          | IT/ BPO                                                                                                    | 10.36                                                                                                      | -0.16                                                                                                      | 0.26                                                                                                       | 0.12                                                                                                       | 0.13                                                                                                       | 0.02                                                                                                       |
| 7                                                                                                          | Education                                                                                                  | 49.98                                                                                                      | 0.51                                                                                                       | -0.02                                                                                                      | 0.18                                                                                                       | 0.02                                                                                                       | 0.99                                                                                                       |
| 8                                                                                                          | Health                                                                                                     | 12.05                                                                                                      | 0.33                                                                                                       | 0.00                                                                                                       | 0.02                                                                                                       | 0.31                                                                                                       | 0.31                                                                                                       |
|                                                                                                            | Total                                                                                                      | 205.22                                                                                                     | 0.77                                                                                                       | 0.32                                                                                                       | 1.22                                                                                                       | 1.85                                                                                                       | 0.64                                                                                                       |

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