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Srinagar, Aug 23: A staggering 77.3% of rural and 70% of urban workers in J&K strive in the non-agricultural informal sector, struggling with lack of job security and poor job benefits according to the Periodic Labour Force Survey (PLFS) 2023-24 by the Union Ministry of Statistics and Programme Implementation.
Apart from low wages, for a vast proportion of these workers, the employment offers no stability. The hidden plight of the employed is often missed in the discussions around unemployment.
As per the report, 41.8% of regular wage earners do not have any job contracts; 42.1% have no access to paid leave; and 44.1% have no social security benefits like a provident fund or health insurance. The PLFS report states that a significant portion of workers in J&K are engaged in the non-agricultural informal sector, with 77.3% of rural workers and 70% of urban workers employed in such roles. This issue is more pronounced in rural areas, where traditional industries like handicrafts and tourism play a significant role. The report reveals concerns about lack of job security and benefits. With 41.8% workers without a job contract, they are vulnerable to abrupt job loss without legal safeguards. In addition, 42.1% do not have access to paid leave, limiting their ability to take time off for sickness, family or other emergencies without financial penalty. Most strikingly, 44.1% of these employees are without any of the three key social security benefits.
The social security benefits, typically understood as Provident Fund (PF), pension and health insurance. The PF is mandated under the Employees’ Provident Funds and Miscellaneous Provisions Act 1952, and is administered under EPFO, Ministry of Labour and Employment. It applies to establishments with 20 or more employees. Compliance in the informal sector is an issue long ignored. Pension schemes are almost non-existent in the private sector, and are fast disappearing from the Government sector as well. Health Insurance, a provision to cover medical expenses, maternity benefits and disability support, are mandated for organisations in certain sectors with 10 or more employees under Employees’ State Insurance Act 1948.
In 2023-24, J&K has reported a youth unemployment rate of 17.4 percent for the 15-29 age group. The figure is significantly more than 10.2 per cent national average rate of unemployment in this age group. In urban areas, the unemployment rate is 32 percent as per MOPSI, the highest percentage in India. The crisis is particularly acute for educated youth. 46.3 percent of youth with secondary or higher education remain jobless. Urban female unemployment is at a crisis number of 53.6%.
However, the issue is compounded by the stark realities of those who are counted as employed in the surveys regarding jobs.
The data underscores the precarious nature of employment and employment upgrade in the region, with many workers, particularly in the informal sector, lacking formal contracts and benefits. J&K. The youth face significant hurdles due to limited private-sector opportunities, and ever-shrinking Government jobs.
A senior academic working on the issue of employment generation said it was time for policymakers, business owners and stakeholders to devise strategies to stop this “exploitatation”. Course correction, he said, must be implemented and that requires close monitoring by the labour department.
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