Employment Scenario of Lakshadweep: A Comparative Study with Kerala

Abstract

Employment generation is the key channel through which economic growth is translated into prosperity. In a growing economy, employment growth with rising productivity is the most effective mechanism available to the poor through which they can participate in the growth process and raise their standard of living. High economic growth, therefore, unless accompanied by quality employment opportunities will raise inequalities and is therefore undesirable. Thus, gainful employment generation is the bedrock for attaining growth with equity and to alleviate poverty. Like other parts of our country, generation of employment opportunities is a challenge in the Union Territory of Lakshadweep and the state of Kerala. According to recent survey conducted by Labour Bureau, among States and UTs, Chhattisgarh recorded the highest Labour Force Participation Rate (LFPR) of 67.9 per cent and the lowest 36.1 per cent was recorded in Lakshadweep. The Worker Population Ratio (WPR) based on UPS approach was the highest in the State of Chhattisgarh (66.6 per cent) and lowest in Lakshadweep (30.3 per cent). The unemployment rate was estimated to be 5.0 per cent at the all India level under the UPS approach Topping the chart among the states and union territories was Tripura (19.7%) followed by Sikkim (18.1%), Lakshadweep (16.1%), Andaman and Nicobar islands (12.7%), Kerala (12.5%) and Himachal Pradesh (10.6%). It has been observed at the all India level 5.1 per cent of the households did not have even a single earner. Among the households without any earner, 51.5 per cent households have average monthly earnings up to Rs. 5,000. Lakshadweep has the highest percentage of (13.8 per cent) households with no earner followed by Kerala (13.2 per cent) and Chandigarh (12.4 per cent). Lakshadweep has a tradition of a very high rate of literacy. In the 2011 census it ranked second among all states and UTs with 92.28 Percent after Kerala. India in general and Lakshadweep in particular, it is observed that the unemployment rate goes up with the level of education. High unemployment rate among graduates and post graduates is a serious issue and to address it effectively. This paper tries to analyze the employment unemployment scenario of Lakshadweep in comparison with Kerala in its various dimensions like LFPR, WPR, number of earners, unemployment and under-employment on the basis of the 5th Annual Employment Unemployment Survey 2015-16 conducted by Labour Bureau, Ministry of Labour and Employment, Government of India.