Policy

This study analyses the changing structure of the labour force and employment in India using the Employment and Unemployment Survey (2011–12) and the Periodic Labour Force Surveys I and II (2017–18 and 2018–19). The estimates indicate that there was a mere improvement in employment from 2017–18 to 2018–19; however, as this was accompanied by a decline in the size of the workforce between 2011–12 and 2017–18, this does not indicate recovery. The unemployment rate, especially that of youth, remains at a historic high. A remarkable decline in the share of agriculture in the workforce without a corresponding increase in the non-agricultural sector indicates a somewhat distorted structural transformation. A sizeable portion of the female population has been withdrawn from the labour and workforces. 

Street vendors constitute the most significant and deprived segment of the country’s unorganised sector. Among vendors, the condition of Dalit, women, and child vendors is the most horrific, depressed, and necessitous. Other than being a source of self-employment for the poor, vending is vital to provide convenient, affordable services to the urban populace. It is ironic that the current laws, schemes, and policies are awfully unsympathetic, hostile, and unreceptive towards the ordeals of this section of the urban population. This paper attempts to explore and expose the vulnerability, fragility, and marginalisation of this section under faulty urban governance and development practices by tracking their lives, pains, and plight as vendors.

In a proactive move, the Reserve Bank of India rescued the economy with its innovative—blended conventional and unconventional—monetary policy measures. Low-interest rates, aligning targeted liquidity, and granting moratorium coupled with forbearance to enable banks to restructure loans, mandated the Kamath panel to work out modalities to restructure corporate sector loans. After affirming stability and orderliness of the financial sector throughout the crisis period, it rightly signalled descent towards normalisation paving for pandexit manoeuvring the tool of variable reverse repo rate.

COVID-19 has not only caused deaths but has also exacerbated hunger and starvation due to nationwide lockdowns in the country that have led to a massive breakdown in the supply chain networks. These tough times are no less than a “wake-up call” for India to devise a permanent supply chain solution that ensures an uninterrupted supply of food and nutrition as well as timely healthcare and employment for its population.

The April–June (2020) quarterly data for the urban sector showed a massive decline in the workforce participation rate and a huge increase in the unemployment rate. Still, the annual average work participation rate rose sharply in 2019–20 compared to the earlier two rounds of the Periodic Labour Force Survey estimates, and the average unemployment rate declined somewhat. Given these patterns, the Centre for Monitoring Indian Economy data set, despite its own problems, seems to be casting a more realistic picture.