Household Consumer Expenditure in India, 2005-06

“Household Consumer Expenditure in India, 2005-06”- Report No. 523 based on the data of 62^nd round survey of National Sample Survey Organisation (NSSO) in the Ministry of Statistics and Programme Implementation, Government of India, has been released. The field work of the survey was carried out during July 2005-June 2006. Data collected included commodity-specific information on 148 items of food, 13 items of fuel, 28 items of clothing, bedding and footwear, 18 items of educational and medical expenses, 52 items of durable goods, and about 85 other items. The present report contains the information on distribution of households and persons by 12 classes of household monthly per capita consumer expenditure (MPCE), average MPCE , composition of MPCE by item category (cereals, pulses, clothing, etc.), quantity and value of per capita consumption of different cereals, distributions of households or persons by other characteristics such as educational level, structure and area of dwelling unit, and energy sources used for cooking and lighting etc. The estimates are provided separately for rural and urban sectors at State level as well as for all-India. No separate estimate is provided for small States & UT’s due to small sample size, instead, in such cases the estimates have been provided for a group of States/ UT’s.

The survey covered the whole of the Indian Union except (i) Leh (Ladakh) and Kargil districts of Jammu & Kashmir, (ii) interior villages of Nagaland situated beyond 5 kilometres from the bus routes and (iii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year. The survey was spread over a randomly drawn sample of 39436 households spread over 4750 villages and 5120 urban blocks,

The earlier survey on the same subject was the NSS 61^st round quinquennial survey (2004-05) spread over 7999 villages and 4602 urban blocks covering 1,24,644 households (79,298 in rural areas and 45,346 in urban areas) and enumerating 6,09,736 persons. The main characteristics associated with household consumer expenditure are broadly comparable at the national level. However, at State/UT level comparison of the results of this round with the quinquennial round on some of the characteristics needs to be attempted with due caution.

Some of the important findings of the survey are given below:

· In 2005-06, nearly 19% of the Indian rural population belonged to households with monthly per capita consumption expenditure (MPCE) less than Rs.365, that is, spending less than Rs.12 per person per day on consumption, at 2005-06 prices.

· In urban India, 22% of the population belonged to households with monthly per capita expenditure less than Rs.580 (about Rs.19 per person per day).

· Average monthly per capita consumer expenditure (average MPCE) in 2005-06 was Rs.625 in rural India and Rs.1171 in urban India at 2005-06 prices.

· Out of every rupee spent in 2005-06 by the average rural Indian on consumption, 53 paise was spent on food. Of this, 17 paise was spent on cereals and cereal substitutes, 8 paise on milk and milk products, 6 paise on vegetables, 5 paise on sugar, salt and spices, and 4 paise on beverages, refreshments, processed food and purchased meals.

· Out of every rupee spent in 2005-06 by the average urban Indian on consumption, 40 paise was spent on food. Of this, 9 paise was spent on cereals and cereal substitutes, 7 paise on milk and milk products, 6 paise on beverages, refreshments and processed food, and 4 paise on vegetables.

· Value of average food consumption per person in urban areas was within the range Rs.451-Rs.500 per month in 7 out of 17 major States. In respect of rural food consumption, 13 major States belonged to the range Rs.251-400.

· Average quantity of cereals consumed per person per month in 2005-06 was 11.9 kg in rural areas and 9.8 kg in urban areas.

· About 19% of rural households lived in katcha structures (both roof and walls made of katcha materials). About 50% lived in pucca structures (both roof and walls made of pucca materials). The remaining 31% of rural households lived in semi-pucca structures, that is, structures of which either the roof or the walls (but not both) were made of pucca materials.

· In urban India, the percentage of households using LPG as the major fuel for cooking was in the range of 40-75% in all the major States. In rural India, 74% of households continued to depend on firewood and chips as their major cooking fuel. About 9% used dung cake and another 9% used LPG.

· About 56% of households in rural India used electricity for lighting while 42% used kerosene.

The average rural and urban MPCE for major States and All India is given in the Annex.

This report is also available in the website (www.mospi.gov.in) of Ministry of Statistics and Programme Implementation.

Annex

Average rural and urban MPCE in the major States and at All India level, 2005-06

State	Average MPCE (Rs.)
	Rural	Urban
(1)	(2)	(3)
Andhra Pradesh	704	1304
Assam	626	1352
Bihar	465	684
Chhattisgarh	429	1214
Gujarat	684	1105
Haryana	743	1156
Jharkhand	469	1093
Karnataka	573	1154
Kerala	1056	1566
Madhya Pradesh	487	982
Maharashtra	697	1342
Orissa	460	900
Punjab	1010	1520
Rajasthan	701	1004
Tamil Nadu	688	1171
Uttar Pradesh	570	908
West Bengal	583	1233
All India	625	1171

62nd round survey of National Sample Survey Organisation on Employment and Unemployment

Employment and Unemployment Situation in India: 2005-06

“Employment and Unemployment Situation in India: 2005 –06”- Report No.522 based on the data of 62^nd round survey of National Sample Survey Organisation (NSSO) in the Ministry of Statistics and Programme Implementation, Government of India, has been released. The field work of the survey was carried out during July 2005-June 2006.. This report provides some broad features of employment and unemployment situation in India and some characteristics associated with them at the national and state levels. Information regarding participation in public works was collected for the first time in this round for persons of age 15 years and above in the rural areas. No separate estimate is provided for small States & UT’s due to small sample size, instead, in such cases the estimates have been provided for a group of States/ UT’s.

The survey covered the whole of the Indian Union except (i) Leh (Ladakh) and Kargil districts of Jammu & Kashmir, (ii) interior villages of Nagaland situated beyond 5 kilometres from the bus routes and (iii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year. The survey was spread over 4,798 villages and 5,125 urban blocks covering 78,879 households (37,975 in rural areas and 40,904 in urban areas) and enumerating 3,77,377 persons (1,86,571 in rural areas and 1,90,806 in urban areas).

The earlier survey on the same subject was the NSS 61^st round quinquennial survey (2004-05) spread over 7999 villages and 4602 urban blocks covering 1,24,680 households (79,306 in rural areas and 45,374 in urban areas) and enumerating 6,02,833 persons. The main characteristics associated with employment, unemployment are broadly comparable at the national level. However, at State/UT level comparison of the results of this round with the quinquennial round on some of the characteristics needs to be attempted with due caution.

Some of the important findings of the survey contained in this report are given below:

• About 74 per cent of the households belonged to rural India and accounted for nearly 76 per cent of the total population
• In rural areas, about 79 per cent of the households possessed some kind of ‘ration card’. This percentage was lower at 68 in urban areas.

• Literacy rate for population of all ages was about 66 per cent for male and 47 per cent for female, in the rural areas. The corresponding literacy rates for urban areas, were 82 per cent and 70 per cent respectively.
• 
  
• About 50 per cent of the persons in the age group 5-29 years were currently attending educational institutions – 49 per cent in rural areas and 53 per cent in urban areas.
• According to the usual status (ps+ss), about 56 per cent of rural males and 31 per cent of rural females belonged to the labour force. The corresponding proportions in the urban areas were 57 per cent and 15 per cent respectively.
• In rural India, more than half of the usually employed (‘all’ workers) were self-employed – 57 per cent among males and nearly 62 per cent among fe­males. The corresponding figures in urban India were 42 for male and 44 for female.
• The percentage of regu­lar wage/salaried employees was relatively lower among females as compared to males in both rural and urban India ( figures being 10 for male and 4 for female in the rural areas, and 42 for male and 40 for female in the urban areas ).
• The proportion of female casual labourer was about 1 percentage point higher than that of male casual labourer in both rural and urban areas.
• In rural India, among ‘all’ usually employed, about 65 per cent of the male and 81 per cent of the female were engaged in the primary sector (excluding mining and quarrying), the proportion in the ‘secondary sector (including mining and quarrying)’ being 17 per cent for male and 12 per cent for female while the proportion in the ‘tertiary’ (NIC-2004 industry division: 50-99) sector –is 18 per cent among male and 7 per cent among female.
• In urban India, the ‘tertiary’ sector engaged about 59 per cent of the male workers while the ‘secondary’ sector accounted for about 34 per cent of the usually employed males. For female, the corresponding figures were lower: 52 and 33, respectively. Proportion of urban male and female employed in the primary sector was 6 percent and 15 percent respectively.
• The average wage rate for regular wage/salaried employees in rural areas was Rs. 138.74 for male and Rs. 87.71 for female. The corresponding wage rates in the urban areas were Rs. 205.81 for the male and Rs. 158.23 for the female.
• In the rural areas, on an average, Rs. 59.29 was earned in a day by a male casual labourer whereas a female casual labourer earned Rs. 37.97 in a day, in the urban areas male casual labourer in earned Rs. 80.70 in a day and a female, Rs. 44.57 in a day.
• According to the usual status approach, the unemployment rate in the rural areas was around 2 per cent (for male nearly 3 per cent and for female nearly 2 per cent) . In urban area the unemployment rate was 5 percent (for male nearly 5 per cent and for female nearly 8 per cent).
• The unemployment rate obtained by any of the approaches, was higher for females than that for the males in the urban area but it was lower than that for males in the rural area.
• Among educated persons, (with education level secondary and above), in the age group 15 – 29 years, the unemployment rate in rural and urban area was 12 per cent and 16 per cent respectively.
• The proportion of usually employed male who were found to be not employed during the week preceding the date of survey, termed as visible underemployment rate, was 5 per cent in the rural and 2 per cent in the urban area. Compared to male, the problem of underemployment was more serious among the usually employed female, particularly in the rural area. Among them, the underemployment rate was as high as 18 per cent in the rural and 8 per cent in the urban area.
• The proportion of person-days without work of the usually employed was about 35 per cent and 18 per cent for female in rural and urban India, respectively as against 11 and 5 per cent for male in rural and urban India, respectively.
• The percentage of person-days on which persons with some work during the reference week (according to current weekly status) were without work was about 6 for rural male, 21 for rural female, 3 for urban male and 11 for urban female.
• The rate of under-employment was thus found higher in rural than urban, and higher for female than for male under the three approximations.
• Among the persons of age 15 years and above in the rural area, only 5 per cent got public works, 7 per cent sought but did not get public works and nearly 88 per cent did not even seek work in public works. For male, nearly 6 per cent got public works, 8 per cent sought but did not get public works and 85 per cent did not seek work in public works. The corresponding figures for female were, 3, 6 and 91 respectively.
• The average number of days worked in public works, during the last 365 days, by male and female was almost the same- 17 for male and 18 for female.
• Average wages received per day, for work in public works, was Rs. 56 for male and Rs. 54 for female.

Posted By Vidyanand Acharya

Growing unemployment across the globe

Global Unemployment Getting Bigger

· Vidyanand Acharya

Employment generation has become important parameter to measure the success of developmental policies adopted by the governments at state and at national level. However, the approach to tackle the problem of unemployment has varied from time to time and also from place to place. The gap between the GDP growth rate and employment growth rate in any country and also across the globe has attained its peak today. As a result the global unemployment situation have increased to nastiest level. The unemployment across the globe has reached at alarming height as per latest International Labour Organisation’s Global Employment Trends Report. The report warns that there could spur an increase in global unemployment by an estimated 5 million persons in 2008.

As per the report, the new projection for 2008 is in contrast to 2007, a watershed year in which sound global GDP growth – of more than 5 per cent, led to a “stabilization” of global labour markets with more people in work, a net increase of 45 million new jobs and only a slight increase in the number of people unemployed, to a total of 189.9 million persons worldwide.

“This year’s global jobs picture is one of contrasts and uncertainty”, said ILO Director-General Juan Somavia. “While global growth is annually producing millions of new jobs, unemployment remains unacceptably high and may go to levels not seen before this year. What’s more, though more people are in work than ever before, this doesn’t mean that these jobs are decent jobs. Too many people, if not unemployed, remain among the ranks of the working poor, the vulnerable or the discouraged.” Significantly, the ILO report noted that the reduction in the growth in developed economies attributed to credit market turmoil and higher oil prices so far had been “compensated for in the rest of the world”, especially in Asia, where economic and job growth remained strong. However, the ILO report warned that an expected slowdown in growth during 2008 could increase the global unemployment rate to 6.1 per cent, with a resulting absolute increase of at least 5 million unemployed worldwide.

Though the Global economy growth of 5.2 per cent created an estimated 45 million new jobs in 2007, but failed to have any significant impact on the growth of unemployment. Overall, 61.7 per cent of the global populations of working age –or an estimated 3 billion people – were employed in 2007. Although the global unemployment rate remained virtually constant at 6 per cent, that meant an estimated 189.9 million people, compared to 187 in 2006, were unemployed worldwide in 2007.

The report said five out of 10 people in the world are in vulnerable employment, either contributing family workers or own-account workers with a higher risk of being unprotected. In developing countries these two categories are most likely to work informally and hence have jobs that leave them vulnerable to poverty and risks such as low earnings, dangerous working conditions and lack of health insurance. The ILO report said an estimated 487 million workers – or 16.4 per cent of all workers – still don’t earn enough to lift themselves and their families above the US$1 per person, per day poverty line while 1.3 billion workers – 43.5 per cent – still live below the US$2 per day threshold.

The report also underlined that the service sector continued to grow during 2007, further surpassing agriculture as the world’s most prevalent source of employment. The service sector now provides 42.7 per cent of the world’s jobs, compared to agriculture, which provides 34.9 per cent. The industrial sector, which had seen a slight downward trend between 1997 and 2003, has continued a rather slow upward trend in recent years, representing 22.4 per cent of global jobs.

Regional trends

The report has produced a comprensive picture of unemployment prevailed at regional level. The report observed that the Middle East and North Africa still had the highest unemployment rates at 11.8 and 10.9 per cent respectively in 2007, followed by Latin America & the Caribbean, Central & South Eastern Europe (non EU) & the Commonwealth of Independent States (CIS) at 8.5 per cent. The situation in the Developed Economies & European Union (EU) seemed to be stagnating, the ILO report said, with job growth at its lowest in the last five years and unemployment up by 600,000 over 2006.

The ILO report said it appeared that, on current information, the initial impact of the credit crisis on Developed Economies & EU growth would result in an estimated 240,000 fewer new jobs in the region. However, the ILO analysis also indicated that from a global perspective this downward tendency in the developed economies would be “offset by the rest of the world”, largely due to strong economic and jobs growth in Asia.

ILO’s employment report said that South Asia was the leader in jobs growth during 2007, contributing 28 per cent of the nearly 45 million jobs created during the year worldwide. At the same time, the region has the highest share of vulnerable employment much of which reflects the poor quality of jobs created. More than seven out of 10 people are either own-account workers or contributing family workers, carrying a higher risk of being unprotected, without social security and without a voice at work.

The report said East Asia appeared to be on its way to becoming a middle income region, as sustained productivity growth had increased incomes and helped lift millions of people out of poverty. The ILO said the estimated share of East Asian workers living with their families below the US$2 per day poverty line dropped to 35.6 per cent today from 59.1 per cent 10 years ago, while the percent living below US$1 per day had decreased to 8.7 per cent from 18.8 per cent over the same period.

The report also noted that although the Middle East saw a considerable increase in the employment-to-population ratio the share of people of working age who were employed increased from 46 per cent in 1997 to 50.1 percent in 2007. At the same time, the Middle East was also the only region where labour productivity decreased within the same period.

The global unemployment trends clearly reveal that the process of ongoing globalisation and economic progress based on western developmental model, doesn’t automatically translate into new jobs. This shows once again that labour market policies must be at the centre of macroeconomic policies to ensure that economic growth is inclusive.

Famous Yogiraj Yamuna Das Baba of Mithilanchal.
He was basically from Rajnagar(Ghonghor)

Rural India is the backbone of unorganised manufacturing enterprises

Operational Characteristics of

Unorganised Manufacturing Enterprises in India

“Operational Characteristics of Unorganised Manufacturing Enterprises in India”- Report No.524 based on the data of the survey of unorganised manufacturing enterprises carried out by the National Sample Survey Organisation (NSSO) in the Ministry of Statistics and Programme Implementation, Government of India, as part of the 62^nd round of the NSS, has been released. The fieldwork of the survey was carried out during July 2005-June 2006. This report, first in the series of three reports based on the data on unorganised manufacturing enterprises, provides information on estimated number of enterprises and number of workers, the operational characteristics of the enterprises like location of enterprise, maintenance of accounts, number of working hours, nature of operation, status of registration etc. at all India level for different industry groups and at the States / UT level for all the industry groups taken together. The term ‘unorganised manufacturing enterprises’ referred to all manufacturing enterprises, which were not covered by Annual Survey of Industries (ASI). All government and public sector undertakings were outside the coverage.

All States/Union Territories were covered by the survey except some interior areas of Nagaland, Andaman & Nicobar Islands, and Leh and Kargil districts of Jammu & Kashmir. A dual frame approach was followed in the survey with a view to improving the reliability of the overall estimates by separating out apparently large units into one frame (list frame) and covering the remaining units within the coverage through the area frame. A sample of 82897 enterprises were actually surveyed out of which 2,260 enterprises belonged to the list frame and the remaining were spread over 9,923 sample villages/urban blocks in the area frame.

Some of the important findings of this survey are given below:

· During 2005-06, the number of unorganised manufacturing enterprises was estimated as17.07 million in India. It is seen that during 2005-06, West Bengal had the highest share (16%) of unorganised manufacturing enterprises. The two states, West Bengal and Uttar Pradesh together had 30 percent share of all unorganised manufacturing enterprises in the country.

· Of the total estimated enterprises, 71% were in rural India and 29% in urban India.

· Own Account Manufacturing Enterprises (OAME) constituted 86% of all enterprises and the remaining 14% were establishments. (The respective share of NDMEs and DMEs were 10% and 4% of total enterprises)

· About 36.44 million persons were estimated to be working in unorganised manufacturing enterprises during 2005-06. West Bengal had the highest share (15%) of workers in unorganised manufacturing enterprises of the country closely followed by Uttar Pradesh (14%). About 55% of all workers were concentrated in five states viz. West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh, and Maharashtra.

· The estimated number of workers per enterprise was about 2.13.

· Nearly 94% of all enterprises were perennial enterprises.

· About 98% of all enterprises were proprietary enterprises.

· About 3% of all enterprises had no fixed location of operation.

· About 90% of all enterprises were not registered with any agency.

· About 92% of all enterprises did not receive any assistance from any government or non-government agency.

· About 32% of all enterprises had undertaken at least some work on contract basis and also 28% of all enterprises had undertaken other economic activity.

· Majority (77%) of enterprises having other economic activities as the major source of income derived income from agriculture, hunting, forestry, mining, quarrying etc.

Estimated number of unorganised manufacturing enterprises during 2005-06
State/UT	Estimated number of enterprises
	rural	urban	all
Andhra Pradesh	1085242	447997	1533239
Arunachal Pradesh	541	318	859
Assam	333006	37774	370781
Bihar	663379	109018	772397
Chhatisgarh	172610	34871	207481
Delhi	3639	93997	97636
Goa	4546	5762	10308
Gujarat	300753	353605	654358
Haryana	119687	110423	230110
Himachal Pradesh	100437	7005	107442
Jammu & Kashmir	140468	32944	173412
Jharkhand	540250	45698	585948
Karnataka	663211	298549	961761
Kerala	492777	165914	658692
Madhya Pradesh	564463	290097	854559
Maharashtra	556168	570294	1126462
Manipur	35797	16721	52518
Meghalaya	34513	2474	36987
Mizoram	3291	1810	5101
Nagaland	7167	2739	9906
Orissa	870877	86352	957229
Punjab	150208	143029	293237
Rajasthan	400875	235595	636470
Sikkim	3684	420	4103
Tamilnadu	850353	631580	1481933
Tripura	38900	6470	45370
Uttaranchal	53940	15146	69087
Uttar Pradesh	1704516	654859	2359375
West Bengal	2223768	529025	2752793
A & N Islands	1872	444	2316
Chandigarh	753	621	1373
D & N Haveli	797	172	969
Daman & Diu	1464	1175	2639
Lakshadweep	255	142	397
Pondicherry	4058	9513	13572
all-India	12128266	4942554	17070820

Annex-II

Estimated number of workers in descending order in different States/UT
State / UT	estimated number of workers			% share
	OAME*	Establishment$	All (in descending order)
West Bengal	3980082	1513751	5493833	15.08
Uttar Pradesh	3744877	1543024	5287901	14.51
Tamil Nadu	1760313	1609206	3369519	9.25
Andhra Pradesh	2003229	935716	2938945	8.06
Maharashtra	1235091	1666326	2901417	7.96
Orissa	1836331	187210	2023541	5.55
Karnataka	1107479	866890	1974369	5.42
Gujarat	845248	1006884	1852132	5.08
Madhya Pradesh	1437477	303169	1740646	4.78
Bihar	1311718	141355	1453073	3.99
Kerala	673565	717441	1391006	3.82
Rajasthan	797748	497587	1295335	3.55
Jharkhand	840208	109137	949345	2.61
Assam	472123	160358	632481	1.74
Punjab	313818	286992	600810	1.65
Haryana	234038	309986	544024	1.49
Chhattisgarh	376669	81697	458366	1.26
Delhi	26478	430730	457208	1.25
Jammu & Kashmir	260614	58255	318869	0.87
Himachal Pradesh	125522	39911	165433	0.45
Uttaranchal	80353	67485	147838	0.41
Tripura	55272	89588	144860	0.40
Meghalaya	49894	40543	90437	0.25
Manipur	67836	13534	81370	0.22
Pondicherry	10009	34700	44709	0.12
Goa	8903	19584	28487	0.08
Nagaland	12925	3382	16307	0.04
Mizoram	6037	3410	9447	0.03
Daman & Diu	2239	6311	8550	0.02
Sikkim	5218	2408	7626	0.02
A & N Islands	2466	3571	6037	0.02
Arunachal Pradesh	1081	2220	3301	0.01
Chandigarh	1217	1382	2599	0.01
D & N Haveli	724	1540	2264	0.01
Lakshadweep	491	221	712	0.00
all-India	23687294	12755505	36442799	100.00