<p>US job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labour market, which could put pressure on the Federal Reserve to cut interest rates this year.</p>

<p>The broad cool-off in hiring reported by the Labour Department on Friday was before a recent escalation in trade tensions between the United States and two of its major trading partners, China and Mexico. Analysts have warned the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.</p>

<p>Adding a sting to the closely watched employment report, far fewer jobs were created in March and April than previously reported, indicating that hiring had shifted into a lower gear. The labour market thus far has been largely resilient to the trade war with China.</p>

<p>"Today's report makes a cut more likely, and supports our view that the trade tensions will ultimately slow growth enough for the Fed to respond in September and December with cuts," said Joseph Song, an economist at Bank of America Merrill Lynch in New York.</p>

<p>Nonfarm payrolls increased by 75,000 jobs last month, the government said. It was the second time this year that job gains dropped below 100,000. Economists polled by Reuters had forecast payrolls rising by 185,000 jobs last month. Job growth in March and April was revised down by 75,000.</p>

<p>President Donald Trump in early May slapped additional tariffs of up to 25% on $200 billion of Chinese goods, which prompted retaliation by Beijing. Last week, Trump said he would impose a tariff on all goods from Mexico to force authorities in that country to stop immigrants from Central America from crossing the border into the United States.</p>

<p>Talks to prevent the duties from kicking in at 5% on June 10 continue. Fed Chairman Jerome Powell said on Tuesday the U.S. central bank was closely monitoring the implications of the trade tensions on the economy and would "act as appropriate to sustain the expansion."</p>

<p>Trump, who has routinely tweeted about the strong labour market, made no comment about May's weak hiring, but defended duties on Chinese goods. White House economic adviser Kevin Hassett told Fox Business Network that bad weather in the Midwest was to blame and described the meagre job gains as "a little bit of a blip down."</p>

<p>Economists, however, said there was nothing to suggest the weather was the culprit.</p>

<p>"The weakness in job growth was broadly experienced across industry groups and not obviously driven by distortions such as weather or strikes," said Michael Feroli, an economist at JPMorgan in New York.</p>

<p>U.S. House of Representative Speaker Nancy Pelosi, a Democrat, said the employment report was "a disturbing sign that the administration's disastrous special interest agenda is hollowing out our economy."</p>

<p>Following the report financial markets priced in a rate cut as early as July and two more later this year. Economists, however, believe the Fed will probably wait for more signs of labour market weakness and clarity on the trade issues before easing monetary policy. Fed officials are due to meet on June 18-19.</p>

<p>"Fed officials are likely to remain cautious at the June meeting and keep all their options open," said Michael Hanson, head of global macro strategy at TD Securities in New York.</p>

<p>The dollar fell to a 2-1/2-month low against a basket of currencies, while U.S. Treasury prices rose. Stocks on Wall Street were trading higher.</p>

<p>WORKER SHORTAGES</p>

<p>Last month's slowdown in job gains, however, probably understates the labour market's health as layoffs remain low.</p>

<p>Employment gains over the last three months have averaged 151,000, above the roughly 100,000 needed per month to keep up with growth in the working-age population. In the four months since the first hiccup in hiring appeared in February, however, monthly payrolls gains have averaged just 127,000, the slowest pace over a comparable stretch in nearly seven years.</p>

<p>Some of the weakness in hiring could be because of worker shortages, especially in the construction, transportation and manufacturing sectors. But the worker shortage argument is somewhat undercut by moderate wage growth.</p>

<p>Average hourly earnings grew just 3.1% year-over-year, the slowest annual increase since September. Just three months earlier, wages had been rising at their fastest rate in a decade but gains have moderated since.</p>

<p>The tepid employment report added to soft data on consumer spending, business investment, manufacturing and homes sales in suggesting the economy was losing momentum in the second quarter following a temporary boost from exports, inventory accumulation and defence spending. Growth is cooling as the massive stimulus from last year's tax cuts and spending increases fades.</p>

<p>The Atlanta Fed is forecasting gross domestic product rising at a 1.4% annualised rate in the second quarter. The economy grew at a 3.1% pace in the first quarter.</p>

<p>The unemployment rate remained near a 50-year low of 3.6% in May. A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, dropped to 7.1% last month, the lowest since December 2000.</p>

<p>Hiring slowed across all sectors in May, with the share of industries showing job gains during the month the smallest since July 2016.</p>

<p>Manufacturing payrolls increased by 3,000 last month, after gaining 5,000 positions in April. The sector is struggling with an inventory overhang that has resulted in businesses placing fewer orders at factories.</p>

<p>Employers in the construction sector hired 4,000 workers in May after adding 30,000 jobs to payrolls in April. Professional and business services employment rose by 33,000. Transportation and warehousing payrolls fell as did retail employment. Government shed 15,000 jobs, the most in 16 months.</p>


US job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labour market, which could put pressure on the Federal Reserve to cut interest rates this year.

US job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labour market, which could put pressure on the Federal Reserve to cut interest rates this year. The broad cool-off in hiring reported by the Labour Department on Friday was before a recent escalation in trade tensions between the United States and two of its major trading partners, China and Mexico. Analysts have warned the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record. Adding a sting to the closely watched employment report, far fewer jobs were created in March and April than previously reported, indicating that hiring had shifted into a lower gear. The labour market thus far has been largely resilient to the trade war with China. "Today's report makes a cut more likely, and supports our view that the trade tensions will ultimately slow growth enough for the Fed to respond in September and December with cuts," said Joseph Song, an economist at Bank of America Merrill Lynch in New York. Nonfarm payrolls increased by 75,000 jobs last month, the government said. It was the second time this year that job gains dropped below 100,000. Economists polled by Reuters had forecast payrolls rising by 185,000 jobs last month. Job growth in March and April was revised down by 75,000. President Donald Trump in early May slapped additional tariffs of up to 25% on $200 billion of Chinese goods, which prompted retaliation by Beijing. Last week, Trump said he would impose a tariff on all goods from Mexico to force authorities in that country to stop immigrants from Central America from crossing the border into the United States. Talks to prevent the duties from kicking in at 5% on June 10 continue. Fed Chairman Jerome Powell said on Tuesday the U.S. central bank was closely monitoring the implications of the trade tensions on the economy and would "act as appropriate to sustain the expansion." Trump, who has routinely tweeted about the strong labour market, made no comment about May's weak hiring, but defended duties on Chinese goods. White House economic adviser Kevin Hassett told Fox Business Network that bad weather in the Midwest was to blame and described the meagre job gains as "a little bit of a blip down." Economists, however, said there was nothing to suggest the weather was the culprit. "The weakness in job growth was broadly experienced across industry groups and not obviously driven by distortions such as weather or strikes," said Michael Feroli, an economist at JPMorgan in New York. U.S. House of Representative Speaker Nancy Pelosi, a Democrat, said the employment report was "a disturbing sign that the administration's disastrous special interest agenda is hollowing out our economy." Following the report financial markets priced in a rate cut as early as July and two more later this year. Economists, however, believe the Fed will probably wait for more signs of labour market weakness and clarity on the trade issues before easing monetary policy. Fed officials are due to meet on June 18-19. "Fed officials are likely to remain cautious at the June meeting and keep all their options open," said Michael Hanson, head of global macro strategy at TD Securities in New York. The dollar fell to a 2-1/2-month low against a basket of currencies, while U.S. Treasury prices rose. Stocks on Wall Street were trading higher. WORKER SHORTAGES Last month's slowdown in job gains, however, probably understates the labour market's health as layoffs remain low. Employment gains over the last three months have averaged 151,000, above the roughly 100,000 needed per month to keep up with growth in the working-age population. In the four months since the first hiccup in hiring appeared in February, however, monthly payrolls gains have averaged just 127,000, the slowest pace over a comparable stretch in nearly seven years. Some of the weakness in hiring could be because of worker shortages, especially in the construction, transportation and manufacturing sectors. But the worker shortage argument is somewhat undercut by moderate wage growth. Average hourly earnings grew just 3.1% year-over-year, the slowest annual increase since September. Just three months earlier, wages had been rising at their fastest rate in a decade but gains have moderated since. The tepid employment report added to soft data on consumer spending, business investment, manufacturing and homes sales in suggesting the economy was losing momentum in the second quarter following a temporary boost from exports, inventory accumulation and defence spending. Growth is cooling as the massive stimulus from last year's tax cuts and spending increases fades. The Atlanta Fed is forecasting gross domestic product rising at a 1.4% annualised rate in the second quarter. The economy grew at a 3.1% pace in the first quarter. The unemployment rate remained near a 50-year low of 3.6% in May. A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, dropped to 7.1% last month, the lowest since December 2000. Hiring slowed across all sectors in May, with the share of industries showing job gains during the month the smallest since July 2016. Manufacturing payrolls increased by 3,000 last month, after gaining 5,000 positions in April. The sector is struggling with an inventory overhang that has resulted in businesses placing fewer orders at factories. Employers in the construction sector hired 4,000 workers in May after adding 30,000 jobs to payrolls in April. Professional and business services employment rose by 33,000. Transportation and warehousing payrolls fell as did retail employment. Government shed 15,000 jobs, the most in 16 months.

Weak US employment report raises red flag on economy

<p>With the spectre of slowdown haunting the economy and rising unemployment, Prime Minister Narendra Modi on Wednesday constituted two new Cabinet committees under his chairmanship to spur economic growth, investment and employment.</p>

<p>The five-member Cabinet Committee on Investment and Growth includes Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Road Transport and Highways and of MSME Minister Nitin Gadkari and Railway Minister Piyush Goyal.</p>

<p>Another 10-member Cabinet Committee on Employment and Skill Development has been formed which includes Shah, Sitharaman, Goyal, Minister of Agriculture and Farmers Welfare, Rural Development and Panchayat Raj Narendra Singh Tomar, Human Resource Development Minister Ramesh Pokhriyal 'Nishank', Petroleum and Natural Gas Minister Dharmendra Pradhan, Minister Skill and Entrepreneurship Mahendra Nath Pandey and Ministers of State Santosh Kumar Gangwar (Labour) and Hardeep Singh Puri (Housing and Urban Affairs).</p>

<p>The economy has become a major cause of concern for the new government with GDP dropping to 5.8 per cent in the last quarter of the 2018-19, according to NSSO figures. Overall GDP for last financial year has been estimated at 6.8 per cent against a target of 7.2 per cent.</p>

<p>On the employment front, just after the elections were over the government released the Periodic Labour Force Survey (PLFS) - Annual Report (July 2017 - July 2018) which put the unemployment rate at 6.1 per cent, the highest in 45 years.&nbsp;</p>


With the spectre of slowdown haunting the economy and rising unemployment, Prime Minister Narendra Modi on Wednesday constituted two new Cabinet committees under his chairmanship to spur economic growth, investment and employment.

With the spectre of slowdown haunting the economy and rising unemployment, Prime Minister Narendra Modi on Wednesday constituted two new Cabinet committees under his chairmanship to spur economic growth, investment and employment. The five-member Cabinet Committee on Investment and Growth includes Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Road Transport and Highways and of MSME Minister Nitin Gadkari and Railway Minister Piyush Goyal. Another 10-member Cabinet Committee on Employment and Skill Development has been formed which includes Shah, Sitharaman, Goyal, Minister of Agriculture and Farmers Welfare, Rural Development and Panchayat Raj Narendra Singh Tomar, Human Resource Development Minister Ramesh Pokhriyal 'Nishank', Petroleum and Natural Gas Minister Dharmendra Pradhan, Minister Skill and Entrepreneurship Mahendra Nath Pandey and Ministers of State Santosh Kumar Gangwar (Labour) and Hardeep Singh Puri (Housing and Urban Affairs). The economy has become a major cause of concern for the new government with GDP dropping to 5.8 per cent in the last quarter of the 2018-19, according to NSSO figures. Overall GDP for last financial year has been estimated at 6.8 per cent against a target of 7.2 per cent. On the employment front, just after the elections were over the government released the Periodic Labour Force Survey (PLFS) - Annual Report (July 2017 - July 2018) which put the unemployment rate at 6.1 per cent, the highest in 45 years.

Two new cabinet committees formed to spur growth, employment

<p>Citing disbursal of loans under the Pradhan Mantri Mudra Yojna (PMMY), Prime Minister Narendra Modi on Thursday said "unprecedented" employment and entrepreneurial opportunities exist in the country today.</p>

<p>PM Modi addressed the employees of Hari Krishna Exports, a prominent Suarat-based diamond processing-exporting firm, through video conference from Delhi.</p>

<p>The company, led by&nbsp;Savji Dholakia, gifted 600 cars&nbsp;to its employees on Thursday as Diwali bonus at an event named as 'Hari Krishna Skill India Incentive Ceremony'.</p>

<p>"Around 14 crore loans were disbursed across the country under this (Mudra) scheme. Out of these, 40 lakh loans were given to the youth of Gujarat. In the last four years, loans worth&nbsp;Rs.&nbsp;7 lakh crore were disbursed under this scheme," PM Modi said in his speech.</p>

<p>"Out of all those who took loans under Mudra, over 3.5 crore youth were first-time entrepreneurs, as they have chosen the path of self-employment for the first time. Today, there exist unprecedented employment as well as entrepreneurial opportunities in the country," the prime minister said.</p>

<p>The prime minister said his government has been taking many steps to strengthen the gems and jewellery sector, as it is a significant generator of employment and a key contributor to the exports.</p>

<p>Referring to the "Main Nahin Hum" portal and app launched on Wednesday, PM Modi urged the company and its employees to dedicate some time for social causes.</p>

<p>He appealed that&nbsp;Dholakia and his company to set themselves a target of making at least 100 villages "digital" by 2022.</p>

<p>The Prime Minister will be visiting Gujarat on October 31 to dedicate the Statue of Unity of Sardar Vallabhbhai Patel, PM Modi said. "The biggest Diwali for Gujarat will be on October 31, when the Statue of Unity will be dedicated to the nation," he said.</p>


Citing disbursal of loans under the Pradhan Mantri Mudra Yojna (PMMY), Prime Minister Narendra Modi on Thursday said "unprecedented" employment and entrepreneurial opportunities exist in the country today.

Citing disbursal of loans under the Pradhan Mantri Mudra Yojna (PMMY), Prime Minister Narendra Modi on Thursday said "unprecedented" employment and entrepreneurial opportunities exist in the country today. PM Modi addressed the employees of Hari Krishna Exports, a prominent Suarat-based diamond processing-exporting firm, through video conference from Delhi. The company, led by Savji Dholakia, gifted 600 cars to its employees on Thursday as Diwali bonus at an event named as 'Hari Krishna Skill India Incentive Ceremony'. "Around 14 crore loans were disbursed across the country under this (Mudra) scheme. Out of these, 40 lakh loans were given to the youth of Gujarat. In the last four years, loans worth Rs. 7 lakh crore were disbursed under this scheme," PM Modi said in his speech. "Out of all those who took loans under Mudra, over 3.5 crore youth were first-time entrepreneurs, as they have chosen the path of self-employment for the first time. Today, there exist unprecedented employment as well as entrepreneurial opportunities in the country," the prime minister said. The prime minister said his government has been taking many steps to strengthen the gems and jewellery sector, as it is a significant generator of employment and a key contributor to the exports. Referring to the "Main Nahin Hum" portal and app launched on Wednesday, PM Modi urged the company and its employees to dedicate some time for social causes. He appealed that Dholakia and his company to set themselves a target of making at least 100 villages "digital" by 2022. The Prime Minister will be visiting Gujarat on October 31 to dedicate the Statue of Unity of Sardar Vallabhbhai Patel, PM Modi said. "The biggest Diwali for Gujarat will be on October 31, when the Statue of Unity will be dedicated to the nation," he said.

India has unprecedented employment opportunities: PM Modi

<p>The Federal Reserve Bank of Kansas City organises the annual Jackson Hole Economic Policy Symposium in the Grand Tetons National Park, Wyoming, USA. The Symposium, held from August 23-25 this year, witnesses a number of prominent economists, central bankers and policymakers coming together to discuss pressing and dynamic economic issues. Given the presence of renowned economists and policymakers, it is no surprise that the Symposium commands considerable interest among the media, economists and central bankers.</p>

<p>This year, the Symposium sought to discuss issues surrounding market power and concentration and how it is shaping the discourse around unemployment, inflation and the role of the central bank in monetary policy. In the last few years, especially in the United States, firm concentration has increased. That is, there are a small number of extremely successful but large firms that dominate the entire market, while the smaller firms either consolidate into another large firm or are integrated into the value chains of the existing large firms. The rise of Internet and tech-based superstar firms like Google, Amazon, Apple and Facebook are a case in point. At the same time, although unemployment rates in the US are at historically low levels after the financial crisis of 2008, wage growth and inflation have been very sluggish. This upsets the traditional unemployment-inflation trade-off — called the Phillips Curve — used by central banks to determine the level of intervention in the money markets.</p>

<p>According to economists, rising concentration might be driving low wage and price growth. The large firms act as a monopsony — or, a single buyer — in the labour market. As the single employer in a particular market, they are able to hold wages down. In the absence of an alternative firm, workers are bound to the superstar firm and forced to accept lower or stagnant wages. Alan Krueger, a Princeton economist, argued further that some of these firms also collude, either explicitly or through more subtle signalling to bid wages down and restrict workers from switching firms.</p>

<p>Another paper by Alberto Cavallo of Harvard University found evidence that the algorithms used by internet-based retail giants like Amazon to constantly change and adjust prices have led to greater price fluctuations in response to various macroeconomic shocks. This so-called 'Amazon Effect' not only forces brick-and-mortar outlets to respond in a similar manner but also reduces the ability of the central bank to influence prices in the economy. This, therefore, calls into question the traditional tools available to central banks, such as the interest rate, in conducting monetary policy.</p>

<p>As far as India is concerned, the Amazon Effect is unlikely to be significant as e-commerce penetration is still relatively low and a large part of price fluctuations is primarily due to supply shocks arising from agriculture and crude oil imports. However, increasing firm concentration and consequent rise in market power is a cause for concern even in India as rising wages and job opportunities are absolutely essential for India to realise its demographic dividend. While the government embarks on its flagship 'Make in India' programme to generate new jobs, there is also an urgent need to ensure that large firms are not able to exercise undue influence on the job market.<br />
&nbsp;</p>

<p><em>(This article was originally published on DNA. Read the<a href="https://www.dnaindia.com/analysis/column-the-amazon-effects-and-monopsony-2677403"> original article)</a></em></p>

<p><em>(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)</em></p>

<p>&nbsp;</p>


The Federal Reserve Bank of Kansas City organises the annual Jackson Hole Economic Policy Symposium in the Grand Tetons National Park, Wyoming, USA. The Symposium, held from August 23-25 this year, witnesses a number of prominent economists, central bankers and policymakers coming together to discuss pressing and dynamic economic issues.

The Federal Reserve Bank of Kansas City organises the annual Jackson Hole Economic Policy Symposium in the Grand Tetons National Park, Wyoming, USA. The Symposium, held from August 23-25 this year, witnesses a number of prominent economists, central bankers and policymakers coming together to discuss pressing and dynamic economic issues. Given the presence of renowned economists and policymakers, it is no surprise that the Symposium commands considerable interest among the media, economists and central bankers. This year, the Symposium sought to discuss issues surrounding market power and concentration and how it is shaping the discourse around unemployment, inflation and the role of the central bank in monetary policy. In the last few years, especially in the United States, firm concentration has increased. That is, there are a small number of extremely successful but large firms that dominate the entire market, while the smaller firms either consolidate into another large firm or are integrated into the value chains of the existing large firms. The rise of Internet and tech-based superstar firms like Google, Amazon, Apple and Facebook are a case in point. At the same time, although unemployment rates in the US are at historically low levels after the financial crisis of 2008, wage growth and inflation have been very sluggish. This upsets the traditional unemployment-inflation trade-off — called the Phillips Curve — used by central banks to determine the level of intervention in the money markets. According to economists, rising concentration might be driving low wage and price growth. The large firms act as a monopsony — or, a single buyer — in the labour market. As the single employer in a particular market, they are able to hold wages down. In the absence of an alternative firm, workers are bound to the superstar firm and forced to accept lower or stagnant wages. Alan Krueger, a Princeton economist, argued further that some of these firms also collude, either explicitly or through more subtle signalling to bid wages down and restrict workers from switching firms. Another paper by Alberto Cavallo of Harvard University found evidence that the algorithms used by internet-based retail giants like Amazon to constantly change and adjust prices have led to greater price fluctuations in response to various macroeconomic shocks. This so-called 'Amazon Effect' not only forces brick-and-mortar outlets to respond in a similar manner but also reduces the ability of the central bank to influence prices in the economy. This, therefore, calls into question the traditional tools available to central banks, such as the interest rate, in conducting monetary policy. As far as India is concerned, the Amazon Effect is unlikely to be significant as e-commerce penetration is still relatively low and a large part of price fluctuations is primarily due to supply shocks arising from agriculture and crude oil imports. However, increasing firm concentration and consequent rise in market power is a cause for concern even in India as rising wages and job opportunities are absolutely essential for India to realise its demographic dividend. While the government embarks on its flagship 'Make in India' programme to generate new jobs, there is also an urgent need to ensure that large firms are not able to exercise undue influence on the job market. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The Amazon effects and monopsony

<p>Around one-and-a-half crore people have registered for over 89,000 jobs advertised by the railways last month, officials said today.</p>

<p>The officials said that primary registration of around one-and-a-half crore candidates has been received by the Railway Recruitment Board online for recruitment to various Group C and Group D posts.<br />
<br />
The last date for submission of applications is March 31 and applications have been invited for over 89,000 posts, 26,502 vacancies for Group C and 62,907 for Group D.</p>

<p>&quot;Primary registration is done by candidates with their name and address. The next step is the application where they fill up other details and pay the fee,&quot; a senior official told PTI.<br />
<br />
In the preliminary registration of RRB application form, candidates have to provide educational qualification along with other details such as name, father&#39;s name, date of birth, community, email ID and mobile number.</p>

<p>The Railway Recruitment Board (RRB) will tentatively conduct the exam during April and May 2018.</p>

<p>After releasing the notification for the vacancies, the railways made many changes with respect to criteria, age, and educational qualification, after protests by job aspirants in several states.</p>


The last date for submission of applications is March 31

Around one-and-a-half crore people have registered for over 89,000 jobs advertised by the railways last month, officials said today. The officials said that primary registration of around one-and-a-half crore candidates has been received by the Railway Recruitment Board online for recruitment to various Group C and Group D posts. The last date for submission of applications is March 31 and applications have been invited for over 89,000 posts, 26,502 vacancies for Group C and 62,907 for Group D. "Primary registration is done by candidates with their name and address. The next step is the application where they fill up other details and pay the fee," a senior official told PTI. In the preliminary registration of RRB application form, candidates have to provide educational qualification along with other details such as name, father's name, date of birth, community, email ID and mobile number. The Railway Recruitment Board (RRB) will tentatively conduct the exam during April and May 2018. After releasing the notification for the vacancies, the railways made many changes with respect to criteria, age, and educational qualification, after protests by job aspirants in several states.

1.5 crore job aspirants register for 89000 railway posts

<p>Two Hyderabad women, who were stuck in Saudi Arabia in search of a job, have now safely returned to India.</p>

<p>Rehana and Noor had gone to Saudi Arabia with a promise of employment but were forced to work as domestic help.&nbsp;</p>

<p>Their sister Farzana had written to the Union Minister of External Affairs Sushma Swaraj stating that her sisters were being tortured and must return to India.&nbsp;</p>

<div class="ui-state-default" contenteditable="false">
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<p dir="ltr" lang="en">Telangana: Hyderabad woman who had gone to Saudi Arabia for a job &amp; thrashed &amp; sexually assaulted there, returned to India on 25th January. Her daughter says, I thank Sushma Swaraj Ma&#39;am, Indian Embassy and Hyderabad police for bringing back my mother&#39;. <a href="https://t.co/2NMLwn7r6c">pic.twitter.com/2NMLwn7r6c</a></p>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/957254653648842753?ref_src=twsrc%5Etfw">January 27, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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<p>The two women safely returned to India on January 25, shortly after Farzana&#39;s&nbsp;appeal for their safe return.&nbsp;</p>

<p>The&nbsp;women, who went to Saudi Arabia in February 2017, claim that they were thrashed and sexually assaulted during their employment&nbsp;period.</p>

<p>&quot;I was not given food to eat. I even tried committing suicide,&quot; noted one of the sisters.</p>

<p>The daughter of one of the victims&nbsp;thanked Sushma Swaraj saying that &quot;I thank Sushma Swaraj Ma&#39;am, the Indian Embassy and the Hyderabad police for bringing back my mother&quot;.</p>

<div class="ui-state-default" contenteditable="false">
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<p dir="ltr" lang="en">I was thrashed and sexually assaulted. I was not given food to eat. I even tried committing suicide. My children told me they are trying to bring me back and asked me not to lose hope. I then received a call from Indian Embassy &amp; today I am here: Woman <a href="https://t.co/2LuLHcNi4R">pic.twitter.com/2LuLHcNi4R</a></p>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/957254656626900993?ref_src=twsrc%5Etfw">January 27, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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<p>Earlier in January,&nbsp;Farzana had claimed that her&nbsp;sisters were being held in Saudi Arabia on a pretext of employment.</p>

<p>She asked the External Affairs Minister to initiate the process of safe return of her sisters.</p>

<p>&quot;They were taken to Saudi through an agent on the promise of a beautician job, but are now forced to work as domestic help,&quot; Farzana noted previously.</p>

<p>According to media reports, the women were promised a salary&nbsp;of 1200 Saudi Riyal but received only one Saudi Riyal during the course of their employment.</p>


The women claim to have been thrashed and sexually assaulted in Saudi Arabia

Two Hyderabad women, who were stuck in Saudi Arabia in search of a job, have now safely returned to India. Rehana and Noor had gone to Saudi Arabia with a promise of employment but were forced to work as domestic help. Their sister Farzana had written to the Union Minister of External Affairs Sushma Swaraj stating that her sisters were being tortured and must return to India. Telangana: Hyderabad woman who had gone to Saudi Arabia for a job & thrashed & sexually assaulted there, returned to India on 25th January. Her daughter says, I thank Sushma Swaraj Ma'am, Indian Embassy and Hyderabad police for bringing back my mother'. pic.twitter.com/2NMLwn7r6c — ANI (@ANI) January 27, 2018 × The two women safely returned to India on January 25, shortly after Farzana's appeal for their safe return. The women, who went to Saudi Arabia in February 2017, claim that they were thrashed and sexually assaulted during their employment period. "I was not given food to eat. I even tried committing suicide," noted one of the sisters. The daughter of one of the victims thanked Sushma Swaraj saying that "I thank Sushma Swaraj Ma'am, the Indian Embassy and the Hyderabad police for bringing back my mother". I was thrashed and sexually assaulted. I was not given food to eat. I even tried committing suicide. My children told me they are trying to bring me back and asked me not to lose hope. I then received a call from Indian Embassy & today I am here: Woman pic.twitter.com/2LuLHcNi4R — ANI (@ANI) January 27, 2018 × Earlier in January, Farzana had claimed that her sisters were being held in Saudi Arabia on a pretext of employment. She asked the External Affairs Minister to initiate the process of safe return of her sisters. "They were taken to Saudi through an agent on the promise of a beautician job, but are now forced to work as domestic help," Farzana noted previously. According to media reports, the women were promised a salary of 1200 Saudi Riyal but received only one Saudi Riyal during the course of their employment.

Hyderabad sisters stuck in Saudi Arabia return, daughter thanks Sushma Swaraj

<p>Are pakoda jokes your cup of tea? Jokes have been doing the round on WhatsApp and Twitter about Prime Minister Narendra Modi&#39;s words that even selling the deep-fried pan-Indian delicacy for a living is employment enough.</p>

<p>&quot;If someone opens a &#39;pakoda&#39; shop in front of your office, does that not count as employment? The person&#39;s daily earning of Rs 200 will never come into any books or accounts. The truth is massive (numbers of) people are being employed,&quot;&nbsp;<a href="http://zeenews.india.com/india/top-10-highlights-of-pm-narendra-modis-exclusive-interview-with-zee-news-2074983.html">Modi said in an interview to Zee</a>, triggering plenty of humour, some derision, and even outrage.</p>

<p>India&#39;s official national dish is the dal-rice mix, khichdi, but for the moment, pakoda seems to be it.</p>

<p>Modi was actually speaking the truth about India, but to a mindset weaned on 8-hour-working days with 5-day weeks, provident fund dues and company loans, this was a disconnect. It is this mindset that led to even a&nbsp;<a href="http://www.business-standard.com/article/news-ani/students-sell-pakoda-outside-pm-modi-s-rally-venue-118020400750_1.html">protest by students</a>&nbsp;wearing graduate robes in Karnataka to sell pakodas at the venue of a Modi rally.</p>

<p>For those who believe in the dignity of labour, the outrage would seem outrageous. But we even have the&nbsp;<a href="http://www.business-standard.com/article/politics/of-pakoda-sellers-and-jobs-opposition-plans-to-embarrass-govt-in-rs-118020601895_1.html" rel="nofollow" target="_blank">opposition making it a rallying point</a>&nbsp;in Parliament to ask tough questions on joblessness, in spite of BJP president Amit Shah making a sprightly debut speech in which&nbsp;<a href="http://zeenews.india.com/india/in-his-maiden-parliament-speech-amit-shah-hits-back-at-congress-over-pakoda-jibe-2078813.html" target="_blank">he underlined that pakoda-selling is not shameful</a>&nbsp;but likening it to begging is.</p>

<p>We may say in jest, and with deep insight, that the French fries sold in McDonald&#39;s is nothing but aloo-chaat that went abroad for higher studies, or that the multinational chain&#39;s McNuggets is just a cool-sounding variant of the pakoda. With a market capitalisation of 133 billion US dollars (Rs 8.5 lakh crore), McDonald&#39;s is a global pakoda-seller on steroids.&nbsp;</p>

<p>All that humour and outrage apart, it is about time we took Pakodanomics seriously because in the age of robotics and automation, imagining jobs by the millions in manufacturing assembly lines of the kind Henry Ford set up a century ago may not be a wise idea.</p>

<p>In the West, the term &#39;gig economy&#39; is now a fashionable one to discuss self-employed people like web designers, copywriters and software engineers who work independently for several companies or clients at once. I would say pakoda-sellers, plumbers, carpenters and even snake-charmers have been part of India&#39;s gig economy long before the term became fashionable. Nearly half of India&#39;s labour-force&nbsp;<a href="http://www.livemint.com/Opinion/0PbcxA4cO4crznlyQcsOvL/Selfemployment-elephant-in-the-room.html" rel="nofollow" target="_blank">is estimated to be self-employed</a>.&nbsp;</p>

<p>It is time for us to recognise their worth and raising their stature so that they enjoy some deserved benefits. In the UK, the government is&nbsp;<a href="http://www.bbc.com/news/business-42959756" rel="nofollow" target="_blank">seriously considering benefits</a>&nbsp;like sick leave and holiday benefits for gig-workers, amid&nbsp;<a href="https://www.reuters.com/article/us-britain-politics-employment/uk-to-consult-on-employment-status-after-gig-economy-concerns-idUSKBN1FR015" rel="nofollow" target="_blank">charges that they are being exploited</a>.&nbsp;</p>

<p>This, of course, applies mainly to people like cab drivers tied to giant tech-platform companies like Uber, but there is no reason India should not learn from Britain to step up benefits for the self-employed as a larger class. The Mudra loans and the&nbsp;<a href="http://indianexpress.com/article/opinion/is-ayushman-bharat-a-game-changer-national-health-insurance-scheme-5054394/" rel="nofollow" target="_blank">recently-announced Ayushman Bharat health insurance scheme</a>&nbsp;for the masses cover these to some extent but it would make more sense to frame a real, elaborate policy.</p>

<p>India does have schemes to help the self-employed, and this is not really new for NDA or Modi. The government portal has a&nbsp;<a href="https://www.india.gov.in/people-groups/community/self-employed" rel="nofollow" target="_blank">special section for this</a>. However,&nbsp;<a href="http://www.businesstoday.in/union-budget-2018-19/key-announcements/jobs-national-employment-policy-nep-budget-2018-un-labour-report-niti-aayog-pm-modi/story/266077.html" rel="nofollow" target="_blank">speculative reports</a>which said the budget this year would announce an employment policy have not come true yet. A self-employment policy seems even more elusive.</p>

<p>What India needs is to go one step further from Britain and look at framing a self-employment framework that would provide benefits including home loans, infrastructure, pensions, healthcare and holidays to the self-employed including pakoda-sellers who are part of India&#39;s uncelebrated gig economy. If only the Niti Aayog could take its eyes off high technology and look at low-brow employment with long-term benefits for hundreds of millions of people, Modi may have reasons to smile rather than be laughed at. Else, they will accuse him of making a khichdi out of Pakodanomics!</p>

<p>&nbsp;</p>

<p><em>(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)</em>&nbsp;&nbsp;</p>


Those who derided Modi's terming of pakoda-selling as employment are stuck in a mindset where employment means 9 to 5.

Are pakoda jokes your cup of tea? Jokes have been doing the round on WhatsApp and Twitter about Prime Minister Narendra Modi's words that even selling the deep-fried pan-Indian delicacy for a living is employment enough. "If someone opens a 'pakoda' shop in front of your office, does that not count as employment? The person's daily earning of Rs 200 will never come into any books or accounts. The truth is massive (numbers of) people are being employed," Modi said in an interview to Zee, triggering plenty of humour, some derision, and even outrage. India's official national dish is the dal-rice mix, khichdi, but for the moment, pakoda seems to be it. Modi was actually speaking the truth about India, but to a mindset weaned on 8-hour-working days with 5-day weeks, provident fund dues and company loans, this was a disconnect. It is this mindset that led to even a protest by students wearing graduate robes in Karnataka to sell pakodas at the venue of a Modi rally. For those who believe in the dignity of labour, the outrage would seem outrageous. But we even have the opposition making it a rallying point in Parliament to ask tough questions on joblessness, in spite of BJP president Amit Shah making a sprightly debut speech in which he underlined that pakoda-selling is not shameful but likening it to begging is. We may say in jest, and with deep insight, that the French fries sold in McDonald's is nothing but aloo-chaat that went abroad for higher studies, or that the multinational chain's McNuggets is just a cool-sounding variant of the pakoda. With a market capitalisation of 133 billion US dollars (Rs 8.5 lakh crore), McDonald's is a global pakoda-seller on steroids. All that humour and outrage apart, it is about time we took Pakodanomics seriously because in the age of robotics and automation, imagining jobs by the millions in manufacturing assembly lines of the kind Henry Ford set up a century ago may not be a wise idea. In the West, the term 'gig economy' is now a fashionable one to discuss self-employed people like web designers, copywriters and software engineers who work independently for several companies or clients at once. I would say pakoda-sellers, plumbers, carpenters and even snake-charmers have been part of India's gig economy long before the term became fashionable. Nearly half of India's labour-force is estimated to be self-employed. It is time for us to recognise their worth and raising their stature so that they enjoy some deserved benefits. In the UK, the government is seriously considering benefits like sick leave and holiday benefits for gig-workers, amid charges that they are being exploited. This, of course, applies mainly to people like cab drivers tied to giant tech-platform companies like Uber, but there is no reason India should not learn from Britain to step up benefits for the self-employed as a larger class. The Mudra loans and the recently-announced Ayushman Bharat health insurance scheme for the masses cover these to some extent but it would make more sense to frame a real, elaborate policy. India does have schemes to help the self-employed, and this is not really new for NDA or Modi. The government portal has a special section for this. However, speculative reportswhich said the budget this year would announce an employment policy have not come true yet. A self-employment policy seems even more elusive. What India needs is to go one step further from Britain and look at framing a self-employment framework that would provide benefits including home loans, infrastructure, pensions, healthcare and holidays to the self-employed including pakoda-sellers who are part of India's uncelebrated gig economy. If only the Niti Aayog could take its eyes off high technology and look at low-brow employment with long-term benefits for hundreds of millions of people, Modi may have reasons to smile rather than be laughed at. Else, they will accuse him of making a khichdi out of Pakodanomics! (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: It is time India took a serious look at Pakodanomics

<p>The government on Wednesday allowed 100% FDI in single-brand retail, and allowed foreign airlines to invest up to 49% in Air India.&nbsp;</p>

<p>The decision was taken during a cabinet meeting chaired by Prime Minister Narendra Modi.&nbsp;</p>

<p>The Cabinet allowed overseas investors to invest 100 per cent FDI (foreign direct investment) in single brand retail, trading and construction development, an official statement said.</p>

<p>&quot;Foreign airlines allowed to invest up to 49 per cent under approval route in Air India,&quot; the statement added.&nbsp;</p>

<p>The 100% FDI in single-brand retail has been allowed under the automatic route, which means government approval will not have to be sought.</p>

<p>The investment in Air India however will require government approval and the government has added further conditions for investment in the government carrier.&nbsp;</p>

<p>Foreign investment in Air India including that of foreign Airline (s) shall not exceed 49 per cent either directly or indirectly and &quot;substantial ownership and effective control of Air India shall continue to be vested in Indian National&quot;, the official statement said.&nbsp;</p>

<p>Foreign airlines had already been allowed to invest up to 49% in Indian airline companies, with the exception of Air India.&nbsp;</p>

<p>&quot;It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India,&quot; the statement said.</p>

<p>The government said its decisions would help with ease of doing business, and lead to larger FDI inflows contributing to growth, income, and employment.&nbsp;</p>

<p>One of the harshest criticisms of the government by the opposition in recent times has been the lack of jobs.&nbsp;</p>

<p>Traders bodies however have already <a href="http://www.wionews.com/business-economy/traders-body-opposes-100-per-cent-fdi-in-single-brand-retail-via-automatic-route-29107" target="_blank">opposed the 100% FDI in retail</a> -- the earlier limit was 49%, with government approval being required for further investment -- saying it violates a BJP poll promise.&nbsp;</p>

<p>The government has also allowed 100% FDI in real-estate broking services, saying they do not amount to the&nbsp;real estate business.</p>

<p>The cabinet has also allowed FIIs/FPIs to invest in power exchanges through the&nbsp;primary market.</p>

<p>So far 49 per cent FDI was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. However, FII/FPI purchases were restricted to secondary market only.&nbsp;</p>

<p><em>(With inputs from PTI)</em><br />
&nbsp;</p>


The government said its decisions -- cleared by the cabinet in a meeting chaired by Prime Minister Modi -- would provide employment and income

The government on Wednesday allowed 100% FDI in single-brand retail, and allowed foreign airlines to invest up to 49% in Air India. The decision was taken during a cabinet meeting chaired by Prime Minister Narendra Modi. The Cabinet allowed overseas investors to invest 100 per cent FDI (foreign direct investment) in single brand retail, trading and construction development, an official statement said. "Foreign airlines allowed to invest up to 49 per cent under approval route in Air India," the statement added. The 100% FDI in single-brand retail has been allowed under the automatic route, which means government approval will not have to be sought. The investment in Air India however will require government approval and the government has added further conditions for investment in the government carrier. Foreign investment in Air India including that of foreign Airline (s) shall not exceed 49 per cent either directly or indirectly and "substantial ownership and effective control of Air India shall continue to be vested in Indian National", the official statement said. Foreign airlines had already been allowed to invest up to 49% in Indian airline companies, with the exception of Air India. "It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India," the statement said. The government said its decisions would help with ease of doing business, and lead to larger FDI inflows contributing to growth, income, and employment. One of the harshest criticisms of the government by the opposition in recent times has been the lack of jobs. Traders bodies however have already opposed the 100% FDI in retail -- the earlier limit was 49%, with government approval being required for further investment -- saying it violates a BJP poll promise. The government has also allowed 100% FDI in real-estate broking services, saying they do not amount to the real estate business. The cabinet has also allowed FIIs/FPIs to invest in power exchanges through the primary market. So far 49 per cent FDI was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. However, FII/FPI purchases were restricted to secondary market only. (With inputs from PTI)

Government allows 100% FDI in single-brand retail, 49% in Air India

<p>U.S. job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing.</p>

<p>According to a Reuters survey of economists, the Labor Department&#39;s closely watched employment report on Friday will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October.&nbsp;Employment gains in October were boosted by the return to work of thousands of employees who had been temporarily dislocated by Hurricanes - Harvey and Irma. November&#39;s report will be the first clean reading since the storms, which also impacted September&#39;s employment data.&nbsp;</p>

<p>The unemployment rate is forecast to be unchanged at a 17-year low of 4.1 percent. Average hourly earnings are expected to have risen 0.3 percent in November after being flat the prior month. That would lift the annual increase in wages to 2.7 percent from 2.4 percent in October.&nbsp;Readings in line with expectations would underscore the economy&#39;s strength and fuel criticism of efforts by Trump and his fellow Republicans in the U.S. Congress to cut the corporate income tax rate to 20 percent from 35 percent.</p>

<p>&quot;The labor market is in great shape. Tax cuts should be used when the economy needs tax cuts and it doesn&#39;t need tax cuts right now&quot;, said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. He added, &quot;When politics and economics are mixed in the stew, the policies that are created often have an awful smell&quot;.</p>

<p>Republicans argue that the proposed tax cut package will boost the economy and allow companies to hire more workers. But with the labor market near full employment and companies reporting difficulties finding qualified workers, economists disagree. Job openings are near a record high.&nbsp;</p>

<p>&quot;Companies want workers and do not need tax cuts to give them the financial wherewithal to hire more workers&quot;, said Chris Rupkey, chief economist at MUFG in New York. He said, &quot;It&#39;s labor, that the economy is running out of&quot;.</p>

<p>The economy grew at a 3.3 percent annualized rate in the third quarter, the fastest in three years.</p>

<p><strong>Full Employment</strong></p>

<p>While November`s employment report will probably have little impact on expectations that the Federal Reserve will raise interest rates at its Dec. 12-13 policy meeting, it could help shape the debate on monetary policy next year.&nbsp;The U.S. central bank has increased borrowing costs twice this year. It has forecast three rate hikes in 2018.&nbsp;</p>

<p>Job growth has averaged 168,000 jobs per month this year, down from the average monthly gain of 187,000 in 2016. A slowdown in job growth is normal when the labor market nears full employment.&nbsp;The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population.</p>

<p>The unemployment rate has declined by seven-tenths of a percentage point this year. Economists believe that the tightening labor market will unleash a faster pace of wage growth next year.&nbsp;That, combined with the tax cuts, would help boost inflation.<br />
&quot;I think that in the next three to six months we will see a broader uptick in wage pressures. Given where we are in the economic cycle, if you throw some gasoline in the fire with fiscal stimulus, that will ultimately spark some higher inflation&quot;, said David Donabedian, chief investment officer of CIBC Atlantic Trust in Baltimore.&nbsp;<br />
<br />
Employment gains were likely broad in November. Construction payrolls are expected to show strong growth, thanks in part to rebuilding efforts in the areas devastated by the hurricanes.&nbsp;Another month of steady increases is expected in manufacturing employment while hiring for the holiday season likely boosted retail payrolls.</p>

<p>Retailers, including Macy&#39;s Inc, reported strong Black Friday sales.&nbsp;Macy&#39;s said that this month it would hire an additional 7,000 temporary workers for its stores to deal with heavy customer traffic in the run-up to Christmas.</p>


A growth in United States' job sector is anticipated with hourly earnings going up. The unemployment rate is forecast to remain unchanged

U.S. job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing. According to a Reuters survey of economists, the Labor Department's closely watched employment report on Friday will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October. Employment gains in October were boosted by the return to work of thousands of employees who had been temporarily dislocated by Hurricanes - Harvey and Irma. November's report will be the first clean reading since the storms, which also impacted September's employment data. The unemployment rate is forecast to be unchanged at a 17-year low of 4.1 percent. Average hourly earnings are expected to have risen 0.3 percent in November after being flat the prior month. That would lift the annual increase in wages to 2.7 percent from 2.4 percent in October. Readings in line with expectations would underscore the economy's strength and fuel criticism of efforts by Trump and his fellow Republicans in the U.S. Congress to cut the corporate income tax rate to 20 percent from 35 percent. "The labor market is in great shape. Tax cuts should be used when the economy needs tax cuts and it doesn't need tax cuts right now", said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. He added, "When politics and economics are mixed in the stew, the policies that are created often have an awful smell". Republicans argue that the proposed tax cut package will boost the economy and allow companies to hire more workers. But with the labor market near full employment and companies reporting difficulties finding qualified workers, economists disagree. Job openings are near a record high. "Companies want workers and do not need tax cuts to give them the financial wherewithal to hire more workers", said Chris Rupkey, chief economist at MUFG in New York. He said, "It's labor, that the economy is running out of". The economy grew at a 3.3 percent annualized rate in the third quarter, the fastest in three years. Full Employment While November`s employment report will probably have little impact on expectations that the Federal Reserve will raise interest rates at its Dec. 12-13 policy meeting, it could help shape the debate on monetary policy next year. The U.S. central bank has increased borrowing costs twice this year. It has forecast three rate hikes in 2018. Job growth has averaged 168,000 jobs per month this year, down from the average monthly gain of 187,000 in 2016. A slowdown in job growth is normal when the labor market nears full employment. The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population. The unemployment rate has declined by seven-tenths of a percentage point this year. Economists believe that the tightening labor market will unleash a faster pace of wage growth next year. That, combined with the tax cuts, would help boost inflation. "I think that in the next three to six months we will see a broader uptick in wage pressures. Given where we are in the economic cycle, if you throw some gasoline in the fire with fiscal stimulus, that will ultimately spark some higher inflation", said David Donabedian, chief investment officer of CIBC Atlantic Trust in Baltimore. Employment gains were likely broad in November. Construction payrolls are expected to show strong growth, thanks in part to rebuilding efforts in the areas devastated by the hurricanes. Another month of steady increases is expected in manufacturing employment while hiring for the holiday season likely boosted retail payrolls. Retailers, including Macy's Inc, reported strong Black Friday sales. Macy's said that this month it would hire an additional 7,000 temporary workers for its stores to deal with heavy customer traffic in the run-up to Christmas.

Strong November US job gains anticipated; wages seen rising

<p>Gujarat&rsquo;s development model rests primarily on its industrial performance. Industrial output accounts for nearly 40 per cent of state domestic product as compared to an all-India average of around 30 per cent. Correspondingly 16 per cent of the Gujarat workforce is in manufacturing (which is the largest subset of the industrial sector) as compared to an all-India average of 10.5 per cent. This much of the story is well-known.</p>

<p>But can Gujarat&rsquo;s industrial performance be a desirable model for the rest of the country? One way to address this question is to take a closer look at the way this sector has performed in Gujarat compared to the national average over the last few years.</p>

<p>The most commonly used nationally comparable dataset on the organised manufacturing is the Annual Survey of Industries (ASI) conducted by the Central Statistics Office, which provides data on employment, value added, and other key variables for the &ldquo;factory sector.&rdquo; Note that, this does not include the vast number of micro and small enterprises that are not required to register under the Factories Act.</p>

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<h5>Indian manufacturing has become more and more capital intensive over the years.</h5>
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<p>Here, I take a brief look at what these data reveal for Gujarat. I am looking at the period from 1983 to 2013, but I also examine if the trends in the past fifteen years are any different from the preceding fifteen. At the national level, ASI data show that Indian manufacturing has become more and more capital intensive over the years.</p>

<p>That is, the number of people employed per rupee of fixed capital used has been falling steadily. This trend has been commented on widely in the economics literature as well as the popular press, in the context of &ldquo;jobless growth&quot;. Together with this rise in capital intensity, and partly as a consequence of it, has come increasing labour productivity and a falling share of value-added going to labour in the form of wages and salaries.</p>

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<h5>Gujarat does not stand out as far as employment generation is concerned and if anything does a bit worse than the national average.</h5>
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<p>The trends for Gujarat are similar to the rest of India. However, some interesting and instructive differences also emerge. First, the general trend towards increasing capital intensity is much sharper for Gujarat compared to the all India average or comparable states like Karnataka. So, while in 1983, 63 jobs were created per rupee of fixed capital, by 2014 this was down to less than 5 jobs.</p>

<p>The comparable numbers for India are 59 and 8, and for Karnataka are 70 and 8. Most of the increase in capital intensity has happened in the 1980s and 1990s, with the trend being relatively flat in the 2000s. This has happened nationally. So, Gujarat does not stand out as far as employment generation is concerned and if anything does a bit worse than the national average.</p>

<p>Second, likely as a result of the increasing capital intensity there has been an increasing divergence of labour productivity on the one hand, and wages and salaries on the other hand. Labour productivity refers to value added per employee. The relationship between productivity and employee wages and salaries tells us how much ordinary people have benefited from increases in productivity.</p>

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<p>In the case of Gujarat, adjusting for inflation, annual emoluments (wages and salaries) per person went from ~ INR 47,000 in 1983 to ~ INR 96,000 in 2014 while productivity went from ~ INR 91,000 to ~ INR 750,000 in the same thirty-year period (amounts are in 2004-05 rupee values). That is productivity increased eight-fold while earnings of labour only doubled. This divergence has accelerated over time, particularly during the BJP&rsquo;s tenure.</p>

<p>This divergence between productivity and earnings is observed all over India but is much higher for Gujarat than the national average. Another measure of how much industrial growth and development have benefited ordinary people is the labour share of value-added, i.e. the proportion of value-added accruing to workers in the form of wages and salaries. The nature of changes occurring in the manufacturing sector in India, particularly the increasing capital intensity of production, has meant a steadily falling labour share.</p>

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<h5>In Gujarat while productivity increased eight-fold, earnings of labour only doubled.</h5>
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<p>In Gujarat, the labour share has fallen from 36 per cent in 1982-83 to 18 per cent in 2015. The national average trend is from 40 per cent to 25&nbsp;<span style="background-color: rgb(245, 246, 245);">per cent</span>. For Karnataka, the numbers are 38&nbsp;<span style="background-color: rgb(245, 246, 245);">per cent</span>&nbsp;to 30&nbsp;<span style="background-color: rgb(245, 246, 245);">per cent</span>. This again shows that Gujarat&rsquo;s industrial development has been much more anti-labour than the all-India average.</p>

<p>One possible counter-point is to say that even if the labour share is lower in Gujarat, the level of wages may be higher due to higher productivity. But here too the story is not as clean. In 2014- 2015, the latest year for which data are available, annual emoluments per person employed in Gujarat were INR 229,868 per year (in current rupees) while the national average was INR 221,000 and the Karnataka figure is INR 246,222. So while Gujarat does a little better than the national average, it is by no means a star performer.</p>

<p>Thus, both in terms of job creation, as well as earnings of industrial workers and employees Gujarat, performs either worse than or only slightly better than the national average. At least as far the organised manufacturing sector is concerned, development in Gujarat has benefited capitalists far more than ordinary people.</p>

<p><em>(Disclaimer: The author writes here in a personal capacity).</em></p>


Development in Gujarat has benefited capitalists more than common people.

Gujarat’s development model rests primarily on its industrial performance. Industrial output accounts for nearly 40 per cent of state domestic product as compared to an all-India average of around 30 per cent. Correspondingly 16 per cent of the Gujarat workforce is in manufacturing (which is the largest subset of the industrial sector) as compared to an all-India average of 10.5 per cent. This much of the story is well-known. But can Gujarat’s industrial performance be a desirable model for the rest of the country? One way to address this question is to take a closer look at the way this sector has performed in Gujarat compared to the national average over the last few years. The most commonly used nationally comparable dataset on the organised manufacturing is the Annual Survey of Industries (ASI) conducted by the Central Statistics Office, which provides data on employment, value added, and other key variables for the “factory sector.” Note that, this does not include the vast number of micro and small enterprises that are not required to register under the Factories Act. Indian manufacturing has become more and more capital intensive over the years. × Here, I take a brief look at what these data reveal for Gujarat. I am looking at the period from 1983 to 2013, but I also examine if the trends in the past fifteen years are any different from the preceding fifteen. At the national level, ASI data show that Indian manufacturing has become more and more capital intensive over the years. That is, the number of people employed per rupee of fixed capital used has been falling steadily. This trend has been commented on widely in the economics literature as well as the popular press, in the context of “jobless growth". Together with this rise in capital intensity, and partly as a consequence of it, has come increasing labour productivity and a falling share of value-added going to labour in the form of wages and salaries. Gujarat does not stand out as far as employment generation is concerned and if anything does a bit worse than the national average. × The trends for Gujarat are similar to the rest of India. However, some interesting and instructive differences also emerge. First, the general trend towards increasing capital intensity is much sharper for Gujarat compared to the all India average or comparable states like Karnataka. So, while in 1983, 63 jobs were created per rupee of fixed capital, by 2014 this was down to less than 5 jobs. The comparable numbers for India are 59 and 8, and for Karnataka are 70 and 8. Most of the increase in capital intensity has happened in the 1980s and 1990s, with the trend being relatively flat in the 2000s. This has happened nationally. So, Gujarat does not stand out as far as employment generation is concerned and if anything does a bit worse than the national average. Second, likely as a result of the increasing capital intensity there has been an increasing divergence of labour productivity on the one hand, and wages and salaries on the other hand. Labour productivity refers to value added per employee. The relationship between productivity and employee wages and salaries tells us how much ordinary people have benefited from increases in productivity. While in 1983, 63 jobs were created per rupee of fixed capital, by 2014 this was down to less than 5 jobs. × In the case of Gujarat, adjusting for inflation, annual emoluments (wages and salaries) per person went from ~ INR 47,000 in 1983 to ~ INR 96,000 in 2014 while productivity went from ~ INR 91,000 to ~ INR 750,000 in the same thirty-year period (amounts are in 2004-05 rupee values). That is productivity increased eight-fold while earnings of labour only doubled. This divergence has accelerated over time, particularly during the BJP’s tenure. This divergence between productivity and earnings is observed all over India but is much higher for Gujarat than the national average. Another measure of how much industrial growth and development have benefited ordinary people is the labour share of value-added, i.e. the proportion of value-added accruing to workers in the form of wages and salaries. The nature of changes occurring in the manufacturing sector in India, particularly the increasing capital intensity of production, has meant a steadily falling labour share. In Gujarat while productivity increased eight-fold, earnings of labour only doubled. × In Gujarat, the labour share has fallen from 36 per cent in 1982-83 to 18 per cent in 2015. The national average trend is from 40 per cent to 25 per cent. For Karnataka, the numbers are 38 per cent to 30 per cent. This again shows that Gujarat’s industrial development has been much more anti-labour than the all-India average. One possible counter-point is to say that even if the labour share is lower in Gujarat, the level of wages may be higher due to higher productivity. But here too the story is not as clean. In 2014- 2015, the latest year for which data are available, annual emoluments per person employed in Gujarat were INR 229,868 per year (in current rupees) while the national average was INR 221,000 and the Karnataka figure is INR 246,222. So while Gujarat does a little better than the national average, it is by no means a star performer. Thus, both in terms of job creation, as well as earnings of industrial workers and employees Gujarat, performs either worse than or only slightly better than the national average. At least as far the organised manufacturing sector is concerned, development in Gujarat has benefited capitalists far more than ordinary people. (Disclaimer: The author writes here in a personal capacity).

Opinion: Is Gujarat's industrial performance spectacular?

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