Education Essay

977 Words4 Pages
1999—2005 A reversal of trends was observed in this period, as employment grew by 2.85% p.a. in both urban (4.22%) and rural (2.41%) sectors. It is also interesting to note that female employment increased by 14 times from 0.26% p.a. during 1993—2000 to 3.7% p.a. during 1999—2005. This large increase in employment was surprising however, since this period was characterized by an agrarian crisis with rising input prices, slow production and falling agricultural wage rates. Despite the lack of improvement in living standards of the rural population, this period was hailed as a “success story” due to the exceptional job creation, also resulting in optimism about this phenomenon continuing in the future. While some authors point out that this abnormal increase could be due to non-sampling errors, there is considerable evidence that this large increase in employment was a result of distress employment. Since this period was characterized by acute rural and agricultural crisis (as indicated by an increase in farmer suicides, sharp decline in wages and slow agrarian growth), it seems likely that there were distress-led increases in the labour force participation. This is further corroborated by the finding that the abnormal increase in employment had a large component of female, elderly, children and adolescent population. Further there was a sharp increase in self-employment. These trends can be explained in the following manner. During this period, prices of agricultural commodities grew slowly, whereas agricultural input costs increased rapidly. This made large landowners resort to farm mechanization and cut back on hired labour and/or wages. In addition, for the landless and small farmers, the falling agricultural product prices, high input costs and low wages resulted in self-employment and waged-labour in the non-farm and informal sector, including petty jobs
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