Quantity and Quality of the Labour Force

Selda Dudu^*
*Correspondence: Selda Dudu, Department of Economics, University of Seville, San Fernando, 4, Sevilla 41004, Andalucia, Spain, Email:

Introduction

Study of the labour force as a component of the production process is called labour economics. All people who work for pay, whether as employees, employers, or self-employed people, as well as those who are jobless but looking for work, are considered to be part of the labour force. Labour economics is the study of the variables influencing these workers' productivity, how they are distributed among various industries and vocations, and how their compensation is decided. This section examines the labour force of modern industrialised economies in building models for the examination of these elements [1].

The question of whether India is producing enough jobs at a time when 16 million Indians reach working age each year has been the subject of a contentious debate over the past several months. According to Labour Bureau figures, only seven million new jobs were generated between 2011 and 2015. This hides the fact that India's labour market is undergoing structural transformation as it transitions from an agricultural to a non-agricultural economy. Between 2011 and 2015, employment in agriculture appears to have decreased by about 26 million, while employment in non-agricultural industries including construction, trade, hospitality, and transportation appears to have increased by 33 million. The data itself have problems. But this discussion is ignoring a bigger, more important issue. It is now. Beyond net new jobs, other factors that contribute to gainful employment include the amount and nature of work that persons already employed do, increases in labour productivity, higher wages, and the standard of working conditions (safety, cleanliness, flexibility, income rararrarsecurity and intellectual challenge). Given India's state of development, it is a more comprehensive way of considering employment. The increasing number of incentives for more gainful employment is promising. Increased government spending on infrastructure, including roads, trains, power, housing, healthcare, and education, is one such stimulus. With earnings 70% higher than the average for farm workers, this spending is opening up employment options for an estimated seven million individuals [2].

Description

Both the amount and quality of the labour force are influenced by the population, yet countries with high populations don't always experience the fastest economic growth. The level of population that maximises average product is known as the "optimum population." Education and training have an impact on the quality of the labour. The ability of an economy to grow will be increased by the development of human capabilities. d.) Government policy and economic expansion: Economic expansion has been prioritised as a policy goal. The aim of the government is to stabilise economic fluctuations. The government has a number of tools at its disposal to try to balance the four essential variables of growth, inflation, unemployment, and the balance of payments. The development of micro-entrepreneurship and independent work comes in third. New, better-paying job opportunities are being made available by digital ecosystems, even in regions of the nation where there are less formal labour markets. They include taxi services, online retailers, and digital financial services, where measures to promote financial inclusion have given hundreds of thousands of banking correspondents who serve as customer care centres jobs. Although their effectiveness needs to be evaluated over time, increased lending under GoI programmes to small businesses and self-help groups has the potential to create gainful employment. In a nation where women make up just 24% of people employed in the market economy, they are frequently run by women, advancing gender equity. 20–26 million people have found jobs thanks to only these three factors since [3].

The Government of India and the private sector should collaborate to design and implement many more specific projects to promote gainful employment, such as expanding tourism and healthcare and boosting manufacturing. Despite the "Make in India" push, there hasn't been a noticeable rise in manufacturing that requires a lot of labour. This may be a once-in-a-generation chance because of the shift of such production out of China due to rising wages. Low-skill, labour-intensive manufacturing should be pursued because of the skill makeup of India's labour force. The GoI will also need to remove obstacles that prevent investment and innovation in higher level operations, particularly in the digital economy. India also requires more accurate statistics [4].

Conclusion

The statistics also show significant variations among worker groups. Youth and unskilled individuals typically perform the poorest in terms of employment, as well as in terms of incomes, job strain, and labour market uncertainty (especially the low skilled). Women experience a significant salary gap and have far lower employment rates than men. They are also less prone than men to feel stressed while at work. The data also show the evolution of employment quality over the last ten years. The crisis had a significant impact on both the quantity and quality of jobs available. Without taking into account psychology, social structures, cultures, and governmental activities, the economist cannot study the skills, occupations, and earnings of men and women. In fact, these influences frequently have a greater impact on the labour market than the market forces that economic theory focuses on the most. The special characteristics of labour as a commodity are the primary cause of this. Unlike hiring a machine, hiring labour is a required but insufficient step in the completion of task. Since the employment contract is essentially open-ended, employees must be encouraged to perform to an acceptable standard [5].

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