Changing Employment and Enterprise Structure in Gujarat: 1990-2005

Type Working Paper
Title Changing Employment and Enterprise Structure in Gujarat: 1990-2005
Publication (Day/Month/Year) 2016
An examination of the sectoral workforce estimates derived from the NSSO work participation
rates (UPSS) shows that non-farm employment share in the total economy has shown a steady
rise, from 36 per cent (1993-94) to 52.5 per cent (2011-12). The annual growth rate of non-farm
employment showed significant acceleration in 2000s decade (from 0.9 per cent (in the 1990s
decade) to 3.8 per cent (1999-2000 to 2004-05) and nearly 5.6 per cent from 2004-05 to 2011-
12. Given the important role that the unorganised sector plays in sustaining this growth it is
essential to view the relative buoyancy of employment generation in the rural unorganised sector
activities. Such activities are likely to show regional contrasts in performance as these are rooted
in the locational resource endowments. The unorganised activities in the non-agricultural
economy are amorphous in nature and subject to rapid changes that occur due to high mobility
or morbidity of smaller units and also on account of birth of new units. The loss of jobs in some
industries and gains experienced by others generally show considerable spatial variations.
Further given the fast pace of urbanisation many industries are possibly shifting from rural to
urban locations and may also be undergoing changes related to their size.
Given the above, in this paper we use the information available from Economic Census for
studying the vibrant and promising sectors in terms of numbers and employment across
locations and update for the recent decades. This kind of examination of dynamic activities has
importance in devising support policies for infrastructure, power, credit, technology etc. in order
to strengthen the base of unorganised activities that are possibly gaining jobs. Also, as the
unorganised sector of the economy continues to absorb a disproportionate share of the nonagricultural
workers (Mehta and Kashyap, 2002).

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