Industrial employment up 8%
Real wages rise 18% in FY11
Industries offered employment to 7.8 per cent more people in 2010-11 than in 2009-10, while real wages rose 18 per cent during the same period, official data showed on Monday. According to the Annual Survey of Industries (ASI), the number of people engaged in different industries stood at 12.7 million in 2010-11, compared with 11.7 million in 2009-10.
Wages in current prices (without adjusting for inflation) rose 24.8 per cent during the same period.
The 12th five-year Plan document showed about five million jobs were lost between 2005-06 and 2009-10.
With a share of 15.4 per cent, Tamil Nadu provided the highest employment. It was followed by Maharashtra at 13.4 per cent, Andhra Pradesh at 10.3 per cent and Gujarat at 10.1 per cent.
| THE UPTICK (% growth) | ||
| 2009-10 | 2010-11 | |
| Factories | 2.29 | 8.38 |
| Fixed capital | 28.05 | 18.91 |
| Invested capital | 25.92 | 23.88 |
| Workers | 4.34 | 8.18 |
| Wages to worker | 15.34 | 24.23 |
| Input | 14.07 | 26.88 |
| Output | 14.06 | 25.51 |
| Net value added | 12.19 | 20.36 |
| Income | 12.79 | 20.58 |
| Profit | 10.36 | 19.55 |
| Source: Ministry of Statistics and Programme Implementation | ||
In terms of compensation to employees, basic metal units topped the list, with a share of 11.2 per cent, followed by machinery and equipment at 8.3 per cent and motor vehicles and trailers at eight per cent.
Growth in rent declined 12.6 per cent in 2010-11 from 23.03 per cent in 2009-10, while growth in interest paid rose 20.08 per cent from 6.75 per cent. Profit rose 19.55 per cent, against 10.36 per cent in 2009-10.
The survey had a sample size of 61,573, representing 27 per cent of the workforce in all industries registered under the Factories Act, 1948, and the Bidi and Cigar Workers (Conditions & Employment) Act, 1966.
The number of factories rose 8.38 per cent to 2,11,000 in 2010-11. In the previous year, it had risen 2.29 per cent, ASI data showed. The food products segment had the highest number of factories, accounting for about 16.1 per cent of the total number of factories.
This was followed by other non-metallic mineral products (11 per cent) and textiles (8.8 per cent). With a share of 17.4 per cent, Tamil Nadu had the highest number of factories, followed by Maharashtra (13.2 per cent), Andhra Pradesh (12.4 per cent), Gujarat (10.1 per cent) and Uttar Pradesh (6.5 per cent).
The capital-output ratio, a measure of the capital required to produce a unit of net output (net value added), decreased from 2.28 in 2009-10 to 2.26 in 2010-11. This means in 2010-11, a lower amount of capital was required to produce the same output, compared to 2009-10. At 1.22, the output-input ratio declined to the lowest level in at least 10 years, against 1.23 in 2009-10.
If one considers the capital-output ratio as well, factors other than capital---workers, land, etc---were not as efficient.
In 2010-11, the number of employees per factory stood at 74, the same as in the previous year. The number of workers per factory declined to 47 in 2010-11, the lowest since 2001-02, against 58 workers in 2009-10.
According to the ASI data, invested capital saw growth of 23.88 per cent, lower than 25.52 per cent in 2009-10. Growth in fixed capital stood at 18.91 per cent (lowest in three years), against 28.05 per cent in 2009-10. The data showed in 2010-11, output growth stood at a four year high of 25.51 per cent, compared with 14.06 per cent in 2009-10. This indicates the lag effect of the high investment in 2009-10.
After the slowdown in 2008-09 and the first half of 2009-10, in 2010-11, industries had recorded 20.36 per cent growth in net value addition, compared with 12.19 per cent in 2009-10, data showed. In 2008-09, growth in net value addition stood at 9.59 per cent.
In 2009-10 and 2010-11, economic growth stood at 8.4 per cent each, after falling to 6.7 per cent in the crisis period of 2008-09.
The ASI data on output was in line with the Index of Industrial Production (IIP) data. IIP had returned to a high growth path in 2010-11, recording growth of 8.2 per cent, against 5.3 per cent in 2009-10. The output growth in ASI is usually higher than IIP expansion, as IIP excludes small companies, whose base is lower. These companies may, therefore, show higher growth. Also, ASI provides more reliable data compared to IIP, as it is based on the audited data of companies.
From 2012-13, the ASI data collection process is likely to be conducted through a web portal.