Quarterly Employment Survey (QES)

• 11 Oct 2021

Why in News

The Labour Bureau, Ministry of Labour and Employment released the results of the Quarterly Employment Survey (QES) for the First Quarter (FQ) of 2021 (April to June).

Key Points

• QES Survey:
  
  • About:
    
    • The Quarterly Employment Survey (QES) is part of the All-India Quarterly Establishment-based Employment Survey (AQEES).
    • It covers establishments employing 10 or more workers in the organised segment in 9 sectors.
    • The 9 sectors are Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation and Restaurants, IT/BPO, Financial Service Activities.
  • Objective: To enable the government to frame a “sound national policy on employment.”
    
    • India ratified the International Labour Organization’s (ILO) Employment Policy Convention, 1964, in the year 1998, which requires the ratifying countries to implement “an active policy designed to promote full, productive and freely chosen employment.” India does not have a National Employment Policy (NEP) yet.
  • QES vs PLFS:
    
    • While the QES provides a demand side picture, the National Sample Survey or Periodic Labour Force Survey (PLFS) gives the supply side picture of the labour market.
      
      • PLFS is conducted by the National Statistical Organization (NSO), MoSPI (Ministry of Statistics and Programme Implementation).
  • Issue with QES Data: As the QES covers only establishments with at least 10 workers, it provides data essentially on the formal economy.
    
    • Considering that informal workers (with no written contracts, and benefits) account for roughly 90% of the labour force in India, the QES thus provides only a partial glimpse of the labour market.
• Highlights of QES 2021 Data:
  
  • Shows a 29% increase in employment in nine sectors during the peak Covid-19 months of April-June 2021 over a base of 2013-14 (Sixth Economic Census - EC).
  • There has been a decline in the share of female workers. From 31% in the 6^th EC (2013) to 29% in QES (2021) data.
  • Out of the 9 sectors, 7 sectors saw growth in employment while only 2 sectors (Trade, and Accomodation & Restaurants) saw a decline in employment figures.
    
    • The IT/BPO sector saw the most growth of 152% during 2013-2021 period.
  • Between 1998-2021, there has been an absolute increase in employment figures. Since 1998 (4^th EC), the highest growth rate in employment (38%) was in the period 2005-2013.
    
    • The simple growth rate of employment between 1998-2021 has been fluctuating, and not linear.
• All-India Quarterly Establishment-based Employment Survey (AQEES):
  
  • The AQEES has been taken up by the Labour Bureau to provide frequent (quarterly) updates about the employment and related variables of establishments, in both organised and unorganised segments of nine selected sectors.
    
    • These sectors altogether account for a majority of the total employment in the non-farm establishments.
  • There are two components under AQEES:
    
    • Quarterly Employment Survey (QES) and
    • Area Frame Establishment Survey (AFES).
  • QES would provide the employment estimates for the establishments employing 10 or more workers.
  • AFES covers the unorganised segment (with less than 10 workers) through a sample survey.

Economic Census

• Economic Census is the complete count of all Establishments located within the geographical boundary of India.
• It also provides valuable insight into geographical spread/clusters of economic activities, ownership pattern, persons engaged, etc. of all economic establishments in the country.
• It is conducted every five years and is very crucial for framing of policies and planning for the government and other organisations.
• Six Economic Censuses, (EC) have been conducted till date. The first EC was undertaken in 1977 by the Central Statistical Organization (CSO). The Second in 1980 followed by 3^rd in 1990. The 4^th edition took place in 1998 while the fifth was held in 2005. The Sixth EC was conducted in 2013.
• The 7^th Economic Census (7^th EC) is being conducted by Ministry of Statistics and Programme Implementation (MoSPI) since 2019.
  
  • It is being carried out by the MoSPI in collaboration with Common Service Centre (CSC), a Special Purpose Vehicle (SPV) under Ministry of Electronics and IT.
  • For the first time, an IT-based digital platform is being used for data capture, validation, report generation and dissemination.
  • The 7^th EC will cover all establishments including household enterprises, engaged in production or distribution of goods/services (other than for the sole purpose of own consumption) in non-farm agricultural and non-agricultural sectors.

Source: TH