What is Casualisation of Work Force?

Casualisation of work force is a process in which employment shifts from a full-time and permanent positions to casual or contract positions. Casual workers are defined as those who work for others in farm or non-farm Enterprises and are paid wages that are daily or periodic in nature. All daily wage earing employees and some categories of contract employees are casual labourers. Increasing casualisation of employment affects the prospects of Rural Development too.

Causes of Casualisation

Its due to lack of opportunities in the organised sector people start working as casual workers. Further the flexibility in terms of Working conditions and no special follow up of Labour Laws etc. makes  companies to recruit more  Casual Workers. The rigid labour regulatory framework of India has proved to be a bottleneck for organisations, from hiring workers and expanding their production. The process of liberalization has helped in the process of casualisation. Lack of Budgetary support also promotes Casualisation as in case of Education, in Govt Schools, various state govts are recruiting casual teachers rather than permanent teachers.

Trends in Casualisation

In the last four decades (1972-2012), people have moved from selfemployment and regular salaried employment to casual wage work.

In 1980’s &90’s Casual workers dominated the workforce in construction activity, accounting for about 60% of total workforce in 1987-88 and 1993-94.  The proportion of casual workers in agriculture, hunting, Forestry and fishing, Transport and manufacturing was also high.

Casualisation of work force in Agriculture Sector

Agricultural labourers increased from 28 per cent in 1951 to 40 per cent in 1991. These facts indicate the fast pace of casualisation of workforce in agriculture in India. Moreover, the share of agriculture and allied activities in GDP at factor cost has consistently declined over the years – from 55.3 per cent in 1950-51 to 37.9 per cent in 1980-81 (at 1999-2000 prices) and further to 14.0 per cent in 2011-12 (at 2004-05 prices)

Casualisation in Post Reform Period

Post economic reforms years have seen increase in informalisation and casualisation of employment. Job creation in the private sector is depressed by the low rate of investment. Investment itself is constrained by numerous factors: high levels of debt, high interest rates, a deceleration in corporate loans growth in PSBs, etc. In these conditions, a focus on weakening dismissal laws in the organised sector as the key to job creation is misplaced. Companies find it expedient to employ labour on contract,  is merely a corporate response.

Casualisation trends across genders

With respect to casualisation different Trends were observed among male and female workers over the decade the two Industries that showed a consistent rise in the favour of casual workers among male and female workers were agriculture and construction. Among male casualisation of work force in electricity, transport, finance and community services and among female workers there was a casualisation of workforce in mining and trade.

Govt Policies for improving Employment Situation and decreasing the level of Casualisation

• The Code on Wages Bill 2017 to reduce the multiplicity of Labour laws and establish a conducive environment in organised sector.
• Mahatma Gandhi National Rural Employment Gurantee Act.
• Startup India Program- An Initiative for Innovation and Inclusiveness.
• Promotingindigenous handicraft industries.
• Stand up India Scheme.
• Pandit Deen Dayal Upadhyaya Shramev Jayate Karyakram
• Make in India Mission