Employment Scenario in Indian Punjab: Some Disquieting Features

Abstract

This article aims at analysing the changing dynamics of employment across sectors and sub-sectors in Punjab and explore the factors determining workforce participation. NSSO unit level data and the PLFS data have been used for the period 2004–05 to 2017–18. Besides performing trend analysis, econometric analysis was carried-out to identify the determinants of employment. Evidence reveals that the employment avenues generated by non-farm sectors (industry and services) during the reference period remained insufficient to absorb the workforce leaving agriculture sector. Thus, a massive employment loss has been observed in the recent decade, and youth in the state remained the worst sufferer. The sub-sectors that have experienced absolute decline in employment include food & other products, textile products, wood & paper, metals & plastic, electronics, electrical medical machinery in case of manufacturing sector and transport, health and education and other services in the tertiary sector. Accordingly, unemployment in Punjab in general and youth in particular reached above the national average. This article draws some implications caused by rising unemployment in the state.