• UGI USER
  • Apr 04, 2024
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SPOTLIGHT ON URBAN POVERTY IN INDIA:

THE INDIA EMPLOYMENT REPORT (IER) 2024

 

Syllabus:

  • GS 2 : Issues relating to Poverty

Focus:

  • This editorial highlights findings from the India Employment Report (IER) 2024 by the Institute for Human Development and the International Labour Organization.
  • It sheds light on the complexities of urban poverty, emphasizing the disparity in employment opportunities, wage inequalities, and economic mobility challenges faced by the urban poor in India’s cities.
Source: IE

Background and Overview

  • IER Collaborative Study: Joint effort by Institute for Human Development and International Labour Organization.
  • Economic Growth: Highlights 5.4% average real economic growth from 2015-16 to 2022-23.
  • Urban-Rural Disparity: Notable differences in employment and income trends between rural and urban areas.
  • Urban Unemployment: Urban unemployment rate recorded at 4.8%, higher than rural 1.5%.
  • Earnings Discrepancy: Urban areas report higher average monthly earnings across various employment types.
About Institute of Human Development (IHD) :

  • Founded in 1998 under the Indian Society of Labour Economics (ISLE).
  • Objective: Foster an inclusive society free from poverty and deprivation.
  • Focus Areas: Research on labour, employment, livelihood, gender, health, education, and broader human development.

Urban-Rural Migration Dynamics

  • Historical Migration Trends: Rural-urban migration driven by promises of higher income and improved living.
  • Decreasing Male Migration: Male migration declined by 1.2% from 2000-08 and further marginally in 2021.
  • Settlement Patterns: Rural migrants often settle in slums rather than formal urban areas.
  • Economic Prospects: Need to understand income and employment prospects of slum dwellers.
  • IER Migration Data: Overall migration increased, but economic mobility allure is waning.

Survey Findings from Kolkata Slums

  • Survey Timeline: Survey conducted in 2012 and revisited in 2022-23 covering 29 slums.
  • Household Data: Data collected from 513 slum households in 2012 and 396 in 2021-22.
  • Major Occupations: Unskilled labour remains dominant, with 25% of the workforce engaged.
  • National Trend Consistency: 25% of workers in India engaged in unskilled work.
  • Emerging Occupations: Growth seen in truck driving, cleaning, and construction-related work.

Occupational Trends

  • Unskilled Labour Stability: Unskilled labour remains consistent over the decade.
  • Skilled Labour Decline: Employment in skilled or semi-skilled labor reduced by 6% from 2012-19.
  • Private Organization Employment: Decrease of 3% in employment between 2012-19.
  • Petty Businesses Growth: Employment increased by 9% in petty businesses or small shops.
  • New Occupations: Rise observed in truck driving, cleaning, and construction-related work.

Income Trends

  • 2012 Income Levels: Average monthly income was ₹4,900 in 2012.
  • Income Decline by 2019: Decrease of 5% at constant prices by 2019.
  • Highest Earners: Government employees earned the highest but saw a 5% decrease by 2019.
  • Lowest Earners: Domestic servants and unskilled workers had the lowest incomes.
  • Real Income Changes: Declines observed in construction, petty business, and government service incomes.

Comparison with IER 2024

  • Self-Employment Trends: Increase from 38.7% to 41.3% for males and 34.5% to 44.8% for females from 2000-19.
  • Wage Declines: Real monthly wages declined for self-employed and regular workers.
  • Casual Worker Increase: Increase in wages led to a rise in casual work without social security.
  • IER 2024 Insights: Reflects transformation happening in urban slums.
  • Income Inequality Changes: Reduction in income differences from 2012-19, indicating general income downfall.

Gender Dynamics

  • Female Workforce Decline: 3% decline in women’s workforce in slums from 2012-2021-22.
  • Overall Female Participation: 6% increase in female workforce participation from 2012-2022.
  • Possible Reasons: Increase in female participation in non-slum areas.
  • Workforce Composition: Gender composition varies across different occupation categories.
  • IER 2024 Gender Data: 6% increase in female workforce participation from 2012-2022.

Implications of Urban Poverty Insights

  • Increasing Urban Joblessness: Urban areas report a 4.8% unemployment rate, indicating limited job opportunities and economic instability for the urban poor.
  • Wage Inequality: Despite higher earnings in cities, significant wage gaps exist between different job types, highlighting income disparities and inadequate work opportunities.
  • Economic Mobility Decline: Decreasing male migration suggests urban areas may no longer offer the economic benefits that once attracted rural workers.
  • Continued Slum Settlements: Lack of affordable housing options pushes rural migrants into slums, worsening living conditions for the urban poor.
  • Dwindling Skilled Jobs: Reduced employment in skilled sectors points to a shrinking job market for skilled workers, potentially stalling overall economic growth.
  • Lower Income Inequality: Income equality improves, but it’s due to a general income decline, indicating widespread economic challenges.
  • Gender Employment Gap: A drop in female workforce participation in slums compared to overall figures suggests specific hurdles for women in urban informal jobs.
  • Unstable Job Growth: The surge in casual labour, lacking benefits, reveals unstable employment practices, compromising long-term economic stability.

Way Forward to Takle Urban Poverty

  • Boosting Job Opportunities: Focus on policies that drive job creation in cities to combat high unemployment and offer stable incomes.
  • Ensuring Quality Employment: Implement measures for decent work conditions and fair wages across all job sectors to elevate employment quality.
  • Inclusive Migration Policies: Formulate inclusive migration strategies catering to rural migrants’ needs, including housing and essential services in urban areas.
  • Slum Infrastructure Improvement: Invest in slum infrastructure to enhance living standards and provide essential services to slum residents.
  • Skill Training Initiatives: Launch tailored skill development programs to meet urban job market demands and boost employability.
  • Gender-Equitable Employment: Create gender-inclusive employment schemes to address women’s challenges in urban labour markets and enhance their participation.
  • Social Welfare Programs: Establish comprehensive social welfare schemes to offer financial aid, healthcare, and other vital services to vulnerable urban populations.
  • Sustainable Urban Planning: Adopt sustainable urban planning approaches focusing on inclusive growth and equitable resource allocation to ensure urban prosperity.

Conclusion:

The India Employment Report (IER) 2024 sheds light on the complexities of urban poverty, highlighting disparities in employment, income, and migration trends between urban and rural areas. Despite higher urban earnings, a decline in income and rising casual work indicate a pressing need for targeted interventions to uplift the urban poor.

Source: https://www.google.com/amp/s/www.thehindu.com/opinion/lead/turning-the-spotlight-on-the-urban-poor/article68025389.ece/amp/

Mains Practice Question:

Discuss the findings of the India Employment Report (IER) 2024 regarding urban poverty. What measures can be taken to address the challenges faced by the urban poor in India?

Associated Articles:

https://universalinstitutions.com/18355-2/

https://universalinstitutions.com/poverty-2/