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Self employment rose in rural but declined in urban areas over last eight years

While the percentage of salaried employees in rural areas also witnessed a rise during this period, there has been notable drop in the percentage of casual labour in rural areas as they moved away from agricultural labour to self-employment and salaried jobs.

Written by Sandeep Singh , Edited by Explained Desk | New Delhi | Published: June 1, 2019 2:40:07 am
Self employment rose in rural but declined in urban areas over last eight years While the percentage of rural self-employed stood at 53.5 per cent in 2009-10 among men, that in 2017-18 stood higher at 57.8 per cent.

Indicating a shift towards rise in self-employment over the last eight years in rural areas, the Periodic Labour Force Survey 2017-18 shows that the percentage of self-employed in rural India went up across both male and female as against that seen in 2009-10.

While the percentage of salaried employees in rural areas also witnessed a rise during this period, there has been notable drop in the percentage of casual labour in rural areas as they moved away from agricultural labour to self-employment and salaried jobs.

While the percentage of rural self-employed stood at 53.5 per cent in 2009-10 among men, that in 2017-18 stood higher at 57.8 per cent. Similarly, in case of rural women, the percentage of self-employed rose from 55.7 per cent to 57.7 in the same time period.

On the contrary, the percentage of men casual labour in rural areas went down from 38 per cent in 2009-10 to 28.2 per cent in 2017-18, percentage of women casual labour in rural areas fell from 39.9 per cent to 31.8 per cent in the same time period.

The disaggregated data provides some explanation to this shift. It shows that while the casual labour in non-agriculture activity remained almost constant between 2011-12 and 2017-18, the percentage in agricultural activity witnessed a sharp decline from 21 per cent in 2011-12 to 12.1 per cent in 2017-18.

They, however, seemed to move towards self-employment or salaried job.

While the percentage of self employed went up from 49.8 to 52.2 per cent in the six-year period, the percentage of salaried went up from 9.6 to 12.7 per cent.

In the urban areas, however, while there is a decline in percentage of men and women who are self employed or are working as casual labour from 2009-10 to 2017-18, there has been a significant rise in percentage of those working on regular wage or salary.

While the percentage of urban self employed male fell from 41.1 per cent in 2009-10 to 39.2 per cent, the percentage of female self employed fell sharply from 41.1 per cent to 34.7 per cent in the same period.

If the percentage of male casual labour fell from 17 per cent in 2009-10 to 15.1 per cent in 2017-18, that of female casual labour dropped from 19.6 per cent to 13.1 per cent in the same eight year period.

The growth was seen in salaried class as the percentage of males rose from 41.9 per cent to 45.7 and that for females went up significantly from 39.3 per cent to 52.1 per cent.

The survey also shows a sharp decline in the labour force participation rate (LFPR) over the last eight years.

While it declined from 46.8 in 2009-10 to 38.2 per cent in 2017-18 for both males and females across both rural and urban areas (for those in age bracket of 15-29 years), it went down from 65.9 per cent to 58.8 for males and from 26.3 to 16.4 per cent in case of women in the age bracket of 15 to 29 years.

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