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Reforms need to focus on labour absorption: ILO

The International Labour Organisation has said that India's economic reform programme will need to focus on increasing labour absorption in the industry and improving working conditions in small and medium enterprises, including the informal sector.

The ILO, in its latest 'World Employment report 2001', said "India's economic growth rates have topped 6 per cent. The crucial issue now is to translate these growth rates into more productive and better remunerative levels of employment."

The report pointed out that though open employment was negligible, most of the jobs were in very low productivity activities.

While the rate of increase of the world's labour force is expected to fall, around 500 million new jobs would be needed by 2010, it said.

The report said that if the growth in the world economy continues, it could provide a breathing space but there is always the danger that growth might act as a substitute rather than a spur to reform employment policies -- which would have depressing longer-term implications for the world's unemployed and working poor.

According to the ILO report, the largest absolute increase in employment is expected in Asia while proportion of women in the world's labour force which increased to 40 per cent in 2000 is likely to retain its upward trend particularly in Asia, Latin America, Northern America, Oceana and Africa.

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