9. POVERTY, EMPLOYMENT AND UNEMPLOYMENT
less than that of All India, which can be
attributed mainly to massive subsidization of
rice. In case of urban areas the poverty ratio
of AP continues to be higher than that of All
India.
POVERTY
9.1 The First Five Year Plan (1951-56) for the
nation started with the clear assertion that the
central objective of planning in India shall be
“to raise the standard of living of people. In
the Sixth Five Year Plan, the poverty line
was defined as the mid-point of the monthly
per capita expenditure class having a calorie
intake of 2400 per person in rural areas and
2100 in urban areas. To work out the
monetary equivalent of the above norms,
28th round of National Sample Survey
(1973-74) household consumption data was
used.
9.2 Expert group, constituted in March 1990 to
examine the proportion and the number of
poor, suggested that a State specific poverty
line be estimated on the basis of a
standardised commodity basket. The basket
corresponding to the poverty line at the
national level should be valued based on the
price prevailing in each State in 1973-74. The
Expert Group made estimates of poverty for
the years 1973-74, 1977-78, 1983 and 198788 and submitted its report in July 1993. The
Expert Group recommended taking consumer
price index for agricultural labourers for
updating the rural poverty line and a simple
average of weighted commodity indices of
consumer price index for industrial workers
and consumer price index for urban nonmanual employees for updating urban
poverty line. The Planning Commission
under the Chairman and the then Hon’ble
Prime Minister accepted the Expert Group
Methodology for estimating poverty with a
slight modification viz. using only the
“Consumer Price Index for industrial
workers” for updating the urban poverty line,
as suggested by Planning Commission.
9.3 Percentage of people below poverty line as
per the Modified Expert Group in Andhra
Pradesh as well as at the National level is
given in Annexure 9.1. It can be seen that
percentages of people below poverty line in
the State as well as at the national level have
declined. The poverty ratio in the rural area
in case of Andhra Pradesh continues to be
EMPLOYMENT AND
UNEMPLOYMENT
9.4 One of the most important surveys conducted
by the National Sample Survey Organization
(NSSO) is the Quinquennial Survey on
Employment and Unemployment and the
latest being during 2004-05. In order to
reveal the multidimensional aspects of
employment and unemployment situation,
information on several variables was also
gathered in these surveys. The coverage is
fairly large.
Labour Force
Persons categorized as working (employed)
and also those who are seeking or available
for work (unemployed) together constitute
labour force. The Labour Force Participation
Rate (LFPR) is defined as the number of
persons in the labour force per 1000 persons.
The estimates of Labour Force Participation
Rate based on daily status (current) are
presented in Annexure 9.2.
Labour force participation rates during the
year 2004-05 increased when compared with
1999-2000. Labour Force Participation Rate
of Andhra Pradesh was higher when
compared with all India.
Work Force (Employed)
Persons who were engaged in any economic
activity constitute work force. The number of
persons employed per 1000 persons is called
Work Force Participation Rate (WFPR). The
workforce participation rate per 1000 persons
is based on current daily status. As per the
current daily status a person was considered
working (employed) for the entire day if
he/she had worked for 4 hours or more
during the day.
Work force participation rate among males
and females in rural areas of Andhra Pradesh
declined during 2004-05 when compared to
159
1999-2000 whereas in urban areas of A.P., it
increased. Work force participation rates in
general are high in Andhra Pradesh when
compared with all India. Details are shown
in Annexure 9.3.
these, 3123 establishments were in Public
Sector and 5777 establishments were in
Private Sector. In other words the no.of
establishments in Public Sector was less than
that in Private Sector.
During the past 40 years, large-scale
development has taken place in the Public
Sector and the no.of establishments have rose
upto 14171 by the end of March 2006, while
the no.of Private Sector establishments stood
at 8168, with the total in the organized sector
being 22,339.
In the case of employment in the organized
sector in Andhra Pradesh during the past
forty years, there was totally an increase of
10.44 lakh employees while the total no.of
persons employed in organized sector in
Andhra Pradesh was only 9.56 lakhs in 1966.
It went up to 20.01 lakhs by the end of 31st
March 2006. Number of employees in Public
Sector which were only 6.56 lakhs up to the
end of March 1966 increased to 13.75 lakhs
by the end of March 2006. The no.of
employees in Private Sector establishments
which was only 3.00 lakhs in 1966, increased
to 6.27 lakhs by the end of March 2006. It is
significant to note here that while the no.of
employees almost more than doubled or
almost doubled in the case of the Public and
Private Sector, respectively, during the last
40 years, the increase in employment in
Public Sector was due to four fold increase in
no. of establishments, while that in Private
Sector was due to 30% increase in no.of
establishments. In other words the existing
establishments in Private Sector increased
their employment without physical expansion
horizontally.
The no.of job seekers who registered in the
Employment Exchanges in Andhra Pradesh
during the year 1964 was 2.13 lakhs, while
37,944 vacancies were notified during that
year to Employment Exchanges, and 35,875
candidates were placed in jobs. The total
no.of candidates who finally remained on the
Live Register at the end of 31.12.1964 was
1.31 lakhs.
In the year 2005, as many as 3.47 lakhs
candidates had registered their names in the
Employment Exchanges.
During 2005,
16,979 vacancies were notified and 2122
EMPLOYMENT
The
compound
annual
growth
of
employment in the State is significantly low
when compared with that of All India.
Employment elasticity, which reflects the
responsiveness of employment generation to
change in gross domestic product, is low in
both Andhra Pradesh and All India. In case
of Andhra Pradesh it is less when compared
with All India (Table 9.1)
Table 9.1
Employment Growth and Elasticity
Employment Growth
Andhra
India
and Elasticity
Pradesh
Compound Annual
Growth Rate of
0.35
1.07
Employment (1993-94
to 1999-2000)
Compound Annual
Growth Rate of
2.65
4.43
Employment (19992000 to 2004-05)
Employment Elasticity
(1993-94 to 19990.07
0.16
2000)
Employment Elasticity
(1999-2000 to 20040.41
0.74
05)
Source: - Economic Survey – 2002-03 GOI.
Directorate of Economics and Statistics, Hyderabad
EMPLOYMENT AND TRAINING
Employment in Organized Sector
The day-to-day administration of National
Employment Service was transferred from
Government of India to State Government in
the year 1956.
The broad policy of
Employment Exchanges is laid down at the
National Level and maintenance of day-today administration is done by the State
Government. Andhra Pradesh is first State to
have computerised all the Employment
Exchanges in the State.
According
to
Employment
Market
Information (EMI) in 1966, there were only
8900 establishments in the organized sector
in Andhra Pradesh (as on 31.3.1966). Out of
160
candidates were placed in jobs. The total
no.of job seekers remaining on the Live
Register at the end of 31.12.2005, was 23.76
lakhs.
Organized Sector employment in Andhra
Pradesh marginally decreased from 20.43
lakhs at the end of March 2005 to 20.01
lakhs by 31.3.2006.
Employment in organized (public and
private) sector from March 1966 to March
2006 are shown in Annexure 9.4).
New Initiatives:
Andhra Pradesh is the first State in
computerizing all Employment Exchanges
operations by providing on-line services to
the job seekers and employers. In view of
decreasing public employment, four new
initiatives have been taken up by the
Employment Exchanges in Andhra Pradesh.
i) 8,670 candidates were placed under prerecruitment training for Defence and Para
Military forces during the year 2004 and
548 candidates during the year 2005 and
504 in 2006 (upto September).
ii) 1,132 candidates were placed through Job
Melas during 2004 and 1,281 during
2005 and 1739 candidates in 2006 (upto
September).
iii) 6,554 candidates were guided under
adoption of one Government High School
and one Junior College in each district for
providing career guidance to the students
of terminal calss during 2004 and 61,227
during 2005 and 24,109 candidates in
2006 (upto September).
iv) Training was arranged for 994 urban unskilled unemployed during 2004 and 609
during 2005 and 652 in 2006 (upto
September).
Establishment of Overseas Man Power
Company:
An Overseas Manpower Company has been
launched in Andhra Pradesh in March 2006
to help the unemployed youth and to bring
overseas employers and the aspirants
together.
2,128 candidates have registered till 30th
September 2006 at this Company.
Two Programmes have been organized in
English Language Proficiency for the job
seekers desirous of going abroad.
Two
Malaysian
Induction
Training
Programmes have been organized by the
Company so far for the job seekers desirous
of taking up job in Malaysia.
UNEMPLOYMENT
Persons who owing to lack of work has not
worked but
either
sought
through
employment exchanges, intermediaries,
making
applications
to
prospective
employers were considered as unemployed.
Unemployment rate is defined as the number
of persons unemployed per 1000 persons in
the labour force. This in effect gives the
unutilized portion of the labour force. It is a
more refined indicator of the unemployment
situation in a population than the proportion
unemployed, which is nearly the number of
unemployed per 1000 persons in the
population as a whole. The unemployment
rates as per current daily status are shown in
Annexure 9.5.
Unemployment rates in Andhra Pradesh and
All India increased from 1999-2000 to 200405. Unemployment rates in Andhra Pradesh
continue to be higher than the All India
except urban females. The unemployment
rate is higher in rural areas than in urban
areas.
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