PROJECT REPORT

(Submitted for the Degree of B. Com. Honours in

Accounting & Finance under the University of Calcutta)
Employment generation both public and private sectors before globalization
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SUPERVISORS CERTIFICATE

This is to certify that student of B.Com. Honours in Accounting

& Finance in Business of . which she is submitting, is his/ her genuine
and original work to the best of my knowledge.

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: Kolkata

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STUDENTS DECLARATION

I hereby declare that the Project Work with the title Working Capital Management in
Birla Corporation Limited submitted by me for the partial fulfillment of the degree of B. com.
Honours in Accounting & Finance in Business under the University of Calcutta is my original
work and has not been submitted earlier to any other University for the fulfillment of the
requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any literature
which has been used for this report has been duly acknowledged providing details of such literature
in the references.

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: Kolkata

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Acknowledgement
The conventional education that I pursue gives me little scope for practical skills and knowledge
enhancements. However this project I have undertaken has given me ample opportunities to analyse the
implement my abilities and in understanding the overall curriculum in a better manner.
I would gratefully acknowledge my thanks to a few individuals, the corner stones, without whose
active participation and utmost help, the completion of the project would have been a distant land to
travel to.
To start with, I would like to mention the role of my commerce department which let me have the
privilege of undertaking the project. Hence I thank the teachers of my department for his over whelming
support. I would then like to convey my sincere gratitude to Prof. Riddhi Chatterjee for the primordial
guidance in the completion of the project.
I also express my gratitude towards reserve bank of India for providing immense information on
their websites, which came in good help, throughout my project.
Finally the true power of MS word & Ms excel, without which this project wouldnt have taken
shape, thank you Mr. Bill Gates and Microsoft Corp.

Introduction
mployment plays a key role in the economic security of developing country. It is the main
source of livelihood and self-fulfillment for most of the human beings. The main goals of
economic policy are accelerating growth and expanding employment opportunities in
different sectors of the country. So, employment has always featured as an element of

development policy in India. Therefore, the government has given priority and attention for the
development of Five Year plans from time to time. It also started the new approaches and strategies as
well as policies and programmes for employment generation. After independence, India embarked on a
strategy of industrialization based development, later it was expanded to all sectors with labour
participation.
In the middle of the 1970, the growth of employment emerged as an important concern in
Development planning. But the economic and demographic performance of the country had fallen short
of earlier expectations. As a result, unemployment had increased. So, efforts were initiated to make
development more employment oriented, by encouraging growth of employment intensive sectors
including focusing on employment among the objectives of macroeconomic and sectoral policies.
Simultaneously special employment programmes for creating both short-term wage employment and selfemployment were introduced.
The beginning of 1990s saw initiation of economic reforms, involving deregulation of domestic
economic activities and liberalization of foreign trade and investment regimes. Public sector was no
longer seen as an employment provider. In fact a continuous decline saw in employment since mid-1990s.
Higher growth of economy induced by liberalization was expected to lead to a faster expansion of
employment, but employment growth rate saw a declaration. In this period, most of the new jobs were
located in the informal sector with low earnings and no social protection.
The beginning of the new millennium (2000) saw the period of Jobless growth and beginning of
the positive result of liberalization in terms of a high employment growth. Further, there are a few
disconcerting features of employment growth in recent years.

Employment growth rate and employment content of growth have decelerated.

Sectors with higher employment potential have registered relatively slower growth.
Agricultural sector employment sharply declined, but non-Agricultural sectors have not generated
enough employment.

Most of the employment growth has been contributed by the unorganized and informal sectors,

which gave poor income.

Employment growth in the organized sector, which seems to have picked up in recent years, has
been mostly in the categories of casual and contract labour.
Long term employment growth during 1972-73 to 1983 was 2.44 per cent and 1.84 per cent in

1993-94 and 2004-05. Thus when GDP grew at 4.7 per cent per annum during 1972-73 to 1983,
Employment growth was 2.4 per cent, but employment growth declined to 2.0 per cent during 1983 and
1993-94.During 1993-94 and 2004-05 GDP growth accelerated to 6.3 per cent, but employment growth
further declined to 1.8 per cent during the 2004-05 and 2009-10. When GDP growth was as high as 9 per
cent employment grew at an insignificant rate of 22 per cent. The declining trend in the employment
content of growth is quite clearly seen in terms of the values of employment elasticity. While statistically
reliable estimates on employment characteristics from the NSSO are available at the disaggregated level
of the NSSO agro-climatic regions from the large rounds, the estimates are considered more reliable and
are the most widely used source for understanding employment and unemployment.
In India, as population growth is higher, the employment growth is not proportionately equal to it.
Since independence, unemployment rate has been progressively growing in spite of Five Year plans. For
the expansion of economy, transforming the employment trend in India is one of the significant economic
and social factors. Employment has always featured as an element of development policy in India. The
intention of this study is to analyze the trends of employment in organized sector of India. The organized
sector consists of both the public and private sector. Employment in India is going through striking
changes defying predictable understanding and revolving many common perceptions on their heads. This
study focuses on the trend of male and female employment and sector-wise employment in organized
sector of India. The period of the study is 1970-2010 and based on secondary information.
The main Objectives of the study are as follows:
i.
ii.
iii.
iv.

To analyze the Employment in Organized Public Sector and Private Sector in India.
To study the Sex-wise Employment in Organized Public and Private Sectors in India.
To identify the Category-wise Employment of Public Sector in India.
To look after the pattern of employment generation via public sector and private sector enterprises
during the time span 1970-2010. Within this time period the most important phenomenon of
Indian economy took place which is known as new economic policy or economic reform.

The main motive of the study is to see whether there exist any change in scenario of pre
privatization and post privatization and also to see the growth rate of employment generation by both
public and private sector and its trend.

Limitations
There were certain limitations governing the project which can be discussed as follows:
a. There were not enough sources except the help obtained from the site of the RBI
b. There were not enough evidences to deduct the final impact of the globalization on the
employment generation
So these were the limitations faced during the doing of the project but we tried to overcome that
and come out with a result to show the impact of globalization on the public and the private
sector.

The project particularly wants to study the nature and trend of change in public and private sector
of India. This project studies the trend analysis regarding employment generation in public and private
sector of India which has been developed with following chapters.
Chapter 2 follows a literature review.
Chapter 3 follows a research methodology.
Chapter 4 follows a data analysis.
Chapter 5 follows a conclusion.

Chapter-2
Literature review
A survey of educated unemployment in Bombay by

P.A. Nair entitled employment market in

metropolis(1968) sought to investigate supply and demand forces affecting in employment market in
Bombay. It was confined

to the registration of the regional exchange in Bombay. The important

recommendation made by the study include a development approach to educations, job orientation in
female education curriculum dispersed and balanced development and so on.
The book entitled The Causes of Graduate Unemployment in India written by Mark Blaug, Richard
Layard and Maurreen woodhall deals with the problem of unemployment among the graduates and
matriculates in India. The study was part of joint on Manpower and Education planning in India,
undertaken by higher educational research institute at London school of Economics and new Delhi
planning unit of Indian Statistical Institute. The identified the causes of educated unemployment and the
low quality education. The causes of educated unemployment ,according to them, run deep into the
functioning of the labour market , the institution of joint family and personal values of educated Indians.
A study conducted by C. Parvathamma entitled Employments problems of University Graduates(1984),
focused on the unemployment problem among the university graduates.The study was based on three
percent sample of under graduates and post graduate students in various faculties of Bangalore, Mysore,
Karnataka and agriculture universities in Karnataka state. It classified the causes of unemployment into
two broad categories , external and internal. The external causes are outside the individual and beyond
ones control. While internal causes pertain to and emanate from the individual over which a certain
amount of control can be exercised. The categorisation is relevant to both educated and non-educated
unemployment. The important suggestion to tide over the crisis include self employment, manual jobs,
jobs outside the country and employment in defence forces.
A study conducted by S.P. Gupta, Population Growth
presents the pressure of population growth on

and the Problem of Unemployment(1990)

the programmes of social walfare and economic

growth.The researchers surveyed 200 families in four district in the state of Jammu and Kashmir. The
stressed on the need to reduce the unequal gender size of labour force and the need to create more jobs
in the wake of higher level of socio economic development.

A study conducted by the Association of Indian Universities co ordinated by J.L. Azad,(1991) entitled
Graduate unemployment in India analysed the magnitude of Unemployment among the educated, to
explore the types and pattern of job available and find out the average waiting period. The field of
investigation was confined to the states of Gujarat and Maharashtra. The study revealed that self
employment was the last resort of an educated person. While the incidence of unemployment among arts
students is maximum, among education graduates it is minimum.
The book entitled youth, education and unemployment by Pramod Kumar Bajpai (1992) sought to
analyse the educational and other reasons of unemployment. The study covered 300 unemployed youth
registered with Lucknow Employment Exchange. The study pointed out that the present politicoeconomic system is the major cause of unemployment and the present educational system is not
conductive for employment generation.
The book entitled Educated Unemployed Woman India by Mukta Mittal(1994)

analysed the

development needs and aspiration and the socio economic and behavioural problems of unemployed
educated female youth. The study was conducted among 300 registrants of regional Employment
Exchange of Lucknow and employment Information and Guidance bureau at Lucknow University. The
study analysed some salient features of the problem and suggested certain measures to help the policy
makers to formulate appropriate strategies and approaches to remove gender disparities.

Chapter-3
Research Methodology
A research methodology defines the activity of research is, how to proceed, how to measure progress, and
what constitutes success. Here in this project I want to check out the trend of employment generation in
India within time period 1970-2010. In the context of Employment in public and private sectors of India.
For this I have done graphical analysis of public sector plan outlay. I have studied both the trend and
growth rate of employment generation in public and private sectors of India.

CONCEPTUAL FRAMEWORK
The impact of globalization on employment in the private and public sector can be felt both in
India and in international economy.
There is a huge impact on the economy which can be initially seen in the country but it can also
be seen at the international field. There has been more or less same impact in all the developing
countries nd same impacts in the developed countries thus we see that in the national scenario it
is said about the evolution of the employment and effects on human resource of the country.
The global employment and unemployment situation according to the World Employment
Report 1998-99, Out of an estimated 6 billion population in the year1997 around 3 billion was in
the labour force. 160 million persons have been estimated to be
fully unemployed. 25 to 30
percent of the employed labour force is under employed. A large number of young people in the
age group of 15 and 24 (around 60 million in 1997) are continuously in search of work i.e.
unemployed.

2.1 National scenario

The national scenario in the country regarding the globalization and its effect on the employment
generation can be explained in the following , manner.
The impact of globalization on employment in general is said to be divergent. In fact,
unemployment and disguised unemployment are the normal feature of Indian economy. There is
heavy dependency on unorganized sector by the labour force for their employment, income and
livelihood. In such a situation, the policies towards delinking budgetary support to the public
sector enterprises and reducing labour absorption in public sector as part of the globalization
strategy leads to adverse effect on employment situation in India. The growth of employment
from the Seventies is given in Table .

Growth of Employment in India

Period

Growth rate of

Growth rate of employment in the organized

Of overall employment
Public Private

sector (%)

Total

1972-73 to 77-78

2.75

---

---

2.45

1977-78 to 1983

2.36

2.99

1.41

2.48

1983 to 1987-88

1.77

2.17

0.43

1.38

1987-88 to 1993-94

2.37

1.00

1.18

1.05

1.07

(-)0.03

1993-94 to 1999-2000

1.87

0.53

Source: Economic Survey 1998-99 and Planning Commission, 10th Five year Plan,
Vol.1.

It can be seen that the growth rate of organized sector employment maintained its declining trend
from the period 1977-88 to 1983-84. The growth rate of public sector employment declined
sharply and this trend continues up to the present. From 1997, the public sector employment
grew negatively (Economic Survey: 2002-2003). When the labour absorption in the organized
sector declines during the period of reforms, it would naturally push the additional labour force
to the unorganized sector leading to further swelling of unorganized workers. The situation gets
worsen if pruning or retrenchment activities by the public sector are taken into consideration.
Taking into account the backlog of unemployment and overall magnitude of additional
employment to be generated, there lies a major challenge for the country. In the context of
declining growth rate in employment generation in organized sector and no scope for creating
additional jobs, the additional labour force have to find work on self-employed or remain casual
workers.

It seemed that that the impact of globalization on employment in India is more of warning
signals. The unorganized workers would expand further due to globalization. Under the
present deprived conditions of unorganized sector, this would lead to imbalance in the
labour market leading to more supply of labours, low wages and low level of income.
This situation would affect the social and economic conditions of the unorganized
working population. The unorganized workers will be in the highly disadvantageous
position as there would be a shift in the technology from labour to capital intensive and
use of unskilled to skilled workers

2.2 International scenario.

Aspects of employment on which economic globalization may have an impact. This list will
simply show the diversity and complexity of the issue.
Number of jobs
Economic globalization may first have an impact on the number of jobs available in the
economy, and thus affect key macro-economic variables such as the unemployment rate and the
employment-to-population ratio. The issue is made more complex by the fact that the impact can
be different at the micro-economic level (establishment, enterprise, economic activity)and at the
macro-economic level (total economy), as well as in the short/long term.
Structure of jobs
Economic globalization may also affect the structure of jobs, i.e. their distribution across
economic activities. Jobs linked to certain economic activities may tend to disappear whereas
jobs linked to other, maybe new activities, are created due to changing competitive advantages
and patterns of specialization . Here again the issue is made more complex by the fact that
changes in the structure of jobs can be caused by economic globalization but also by
technological progress, for example.
Composition of jobs
The composition of jobs, i.e. the mix of skilled and unskilled jobs in the economy, is also likely
to be affected by economic globalization. The workforce in developing countries, however, is
becoming better qualified and increasingly engaging in more sophisticated, service-oriented
activities. Skilled workers in developed countries are more and more feeling the competition of
their counterparts in developing countries.

Job earnings
Economic globalization may affect job earnings in two ways. First, by increasing the overall
efficiency of the economy, i.e. its productivity, it causes an increase in the real incomes that may
be shared with job earnings. Second, by fostering movements of products and production factors
it may eventually even out price differences between countries, including the price of labour, i.e.
job earnings. Both trends seem to materialise at the global level.
Migrations
A great and increasing number of people are moving between countries and continents. For the
OECD countries it is estimated that about 30 per cent of migration is linked to labour . Labour
migration is directly fostered by regional agreements liberalizing the movement of people as in
the EU, by changing patterns of specialization, and by the development of multinational
enterprises moving key personnel to, from and between their foreign affiliates. In developed
countries migrants may ease labour shortages and be part of the solution to population ageing. In
developing countries, however, migration to more developed countries may result in a brain
drain .
Employment conditions
Employment conditions are part of the competition between economic locations in addition to
more obvious factors such as labour costs. Lower safety requirements, longer working hours, or
a ban on trade unions, for example, may be attractive for multinational enterprises and may spur
off shoring. This may in turn have an effect on employment conditions in the source countries of
off shoring as recently observed in some EU countries as regards working hours. Changing
patterns of specialization induced by economic globalization or technological progress, such as a
more service-oriented economy, may also have effects on employment conditions that are not
always clear.

Chapter-4
Data Analysis
From the graphical representation of data we can explain the pattern of trend in employment generation
by public and private sectors. Here I have applied the line diagram to explain them.

80.00
70.00
60.00
50.00
40.00
30.00

number of persons on
the live register

20.00

private sector

10.00

public sector

Figure-1
The above graph shows the trend of employment in Private and public sector thorough number of persons
on the live register from 1997-98 to 2011-12.It shows the trend in public sector in 1997-98 is more than in
2011-12 and in private sector in 2011-12 is more than in 1997-98.

Number of Persons
on the Live Register
(End-December)
Private Sector (EndMarch)
Public Sector (EndMarch)

Figure-2
The above graph shows the trend of employment in Private and public sector thorough number of persons
on the live register from 1983-84 to 1995-96.It shows the trend in public sector in 1996-97 is far more
than in 1982-83 and also in private sector in 1996-97 is far more than in 1982-83.

50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0

number of persons on
live register
private sector
public sector

Figure-3
The above graph shows the trend of employment in Private and public sector thorough number of persons
on the live register from 1970-71 to 1982-83.

Figure1: In this fig 1, shows the trend in employment of private and public sector. According to
this, comparing between 1997-98 and 1999-00 it implies that the rate of employees in public
sector is more than private sector out of no. of persons on live register but we can see the rate of
employment from 97 to 2011,gradually fluctuate in public sector by increasing in private sector.
Figure 2: According to fig 2, it implies that employment rate in public sector was gradually
increasing in end of March also in private sector in 1983-84 to 1995-96. But we can see the
uniform rate without changing in private sector between 91-93 and also 86-88.
Figure 3: According to fig3, it shows the rate in employment growth was gradually increasing in
1970-71 to 1982-83 and also in private sector.

SHOWING CATEGORY WISE EMPLOYMENT IN ORGANISED PUBLIC SECTOR AND PRIVATE

SECTOR

100%
90%
80%
70%
Total
Local bodies
Quasi-Governments
State Governments
Central Government

60%
50%
40%
30%
20%
10%
0%
19951996
19971998
1999

20002001
2002

Figure-4

In above figure4 showing the trend of employment in public sector by branch and industries with
category wise.According to graphical view in respect by branch the major portion of employment was
contributed in state government and lower portion in local bodies as well as quasi-governments
contributed so well but central government more lower than state and quasi-governments.

100%
90%
Total

80%
Community, Social &
personal services

Finance, insurance,
real estate etc.

50%

Transport, storage &

communications

Wholesale and retail

trade

40%

Construction

Electricity, gas and

water

20%

Manufacturing

Mining and quarrying

10%

Agriculture, hunting
etc.

70%
60%

30%

0%

Figure-5

According to industries point of view,the major portion of employment was contributed by

community,social and personal services and also transport,storage and communications but lower
contribution in agriculture,hunting,wholesale reail and electricity,gas etc.
SHOWING SEX-WISE EMPLOYMENT IN ORGANISED PUBLIC AND PRIVATE SECTOR

180
160
140
120
100
80
Male
Female

60
40
20
0
1

Figure-6

In the above graphical view, we can determine the employment trend in public sector with sex-wise for
male and female. According to this, the male portion was highly contributed than female portion but in
these portion nothing more changed between respective years also and showing a fluctuation rate .

70
60
50
40
30

Male
Female

20
10
0
1

Figure-7

In the above graphical chart we can calculate the employment trend in private sector for male and female.
According to this, the male portion was highly contrasted but female portion became fall down. But in
this male portion have a fluctuating rate in respective years and in female portion have gradually
increased.

SEX WISE EMPLOYMENT BOTH ORGANISED PUBLIC AND PRIVATE SECTOR

250
200
150
Male

100

Female

50
0
1

Figure-8

In the above chart, we can determine the trend of employment both public and private sector for male and
female. According to this, the male portion was highly contributed than female portion but follows a
fluctuating rate between respective years and in female portion follows a increasing rate in respective
years.

Conclusion
Employment is an important aspect for economic development. India is a conventional varied developing
economy with important private sector contribution to it. The present study records the major changes in
the trends of employment of organized sector in India during 1970-2010.
The following conclusions have been arrived:
(i) The total employment of organized sector has increased slightly. Within the organized sector, the
public sector employment has declined, whereas private sector employment has increased to a greater
extent.
(ii) The percentage share of male employment has declined throughout the period whereas female
employment increased in both public and private sectors.
(iii) Among the various sectors the percentage share of agriculture and hunting has declined in both the
sectors.
(iv) The share of employment of mining and quarrying has increased in public sector whereas it was more
or less constant in the private sector during the study period.
(v)The share of employment of manufacturing sector in both the sectors has declined.
(vi) In construction sector the percentage share of employment in public sector has declined whereas it
remained constant in private sector on average.
(vii) The share of employment in whole sale and retail trade in both the sectors remains constant.
(viii) In the case of transport, storage and communications declined in public sector whereas it remained
constant in private sector.
(ix) Finally the percentage share of employment in total in the case of finance, insurance, real estate,
community, social and personal service has increased in both the sectors. On the whole the structure of
employment has undergone various changes in the organized sector of India. The new employment
opportunities are likely to be generated in the unorganized sector. It will be characterized by poor
condition of worker, lack of employment and social security providing.

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