Data availability on the extent of formal employment has been a controversial issue. With different governments using different statistics, it has been difficult to ascertain the status of formal employment in India.
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Methods for measurement Formal sector and Formal employment
- Taxnet – GST registered companies
- The institutional survey by NSSO (Employment unemployment survey) and Labour ministry (company and form level employment).
- The census covers a household survey
- Social security in Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC).
What are the issues?
- Unreliability of any one set of data.
- Does not captured new job creation in informal sector.
- Lack of integration between different data sets.
- Different estimates by different methods.
- Non-transparency in method of Data Collection.
- Lack of integrated approach and Framework.
- Manipulation of data set sets.
Steps taken by the Government
- NSSO collects employment-unemployment data every year.
- Launch of Shram Suvidha portal for companies to register about their labor forces.
- Unique Labour identification number (LIN).
- Integration of Pan card with Aadhaar to streamline data set.
- GSTN and as a source of big data and Employment details.
- Digitization of salary payment will lead to further improvement in the collection of reliable data