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Measurement of the extent of Formal sector and Formal employment

    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.

    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).
    Measurement of the extent of Formal sector and Formal employment image

    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

    See also  Aatmanirbhar Bharat Rojgar Yojana (ABRY)

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