Jobs: South Asian nations that are booming

While workers in the United States and Europe are having a difficult time in not only finding a job but also keeping it, the situation in South Asia, including India, is somewhat different.

According to the World Bank, job creation in South Asia averaged just fewer than 800,000 a month between 2000 and 2010.

Real wages rose for wage workers, and poverty declined for the self-employed, as well as other types of workers.

Wages and poverty are the primary criteria for improved job quality that guide the analysis. A reduced risk of low and uncertain income for the most vulnerable group of workers is a secondary criterion for improved job quality.

The improvement in job quality has been associated with accelerating economic growth in Bangladesh and India since the 1980s.

In Nepal, where growth has been slow over several decades, it is massive out migration in response to limited opportunities at home that has improved labor market prospects for those who remain.

Workers' remittances have reduced poverty across a wide swath of households.

Let us have a look at the labour situation in South Asia, with particular emphasis on India.

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Annual growth in working-age population, employment and labour force in selected South Asian countries

India 1985-2010

Working age population: 2.3 per cent

Employment: 2.2 per cent

Labour force: 2.2 per cent

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Pakistan 2000-2010

Working age population: 2.9 per cent

Employment: 3.6 per cent

Labour force: 3.6 per cent

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Bangladesh 2000-2010

Working age population: 2.3 per cent

Employment: 2.5 per cent

Labour force: 2.6 per cent

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Sri Lanka 2000-2010

Working age population: 1.0 per cent

Employment: 1.2 per cent

Labour force: 1.0 per cent

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Nepal 1995-2010

Working age population: 2.8 per cent

Employment: 3.3 per cent

Labour force: 3.3 per cent

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Distribution of employment by type in South Asia, by country

India 2010

Self-employed (low end): 43 per cent

Self-employed (high end): 8 per cent

Casual wage: 32 per cent

Regular wage and salaried: 17 per cent

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Pakistan 2009

Self-employed (low end): 50 per cent

Self-employed (high end): 13 per cent

Casual wage: 17 per cent

Regular wage and salaried: 21 per cent

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Bangladesh 2005

Self-employed (low end): 62 per cent

Self-employed (high end): 2 per cent

Casual wage: 22 per cent

Regular wage and salaried: 14 per cent

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Sri Lanka 2008

Self-employed (low end): 34 per cent

Self-employed (high end): 9 per cent

All wages: 57 per cent

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Nepal 2008

Self-employed (low end): 80 per cent

Self-employed (high end): 2 per cent

Casual wage: 10 per cent

Regular wage and salaried: 8 per cent

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Average annual increases in mean real wages in selected countries in South Asia

India 1983-2010: 2.8 per cent

Pakistan 2000-2009: 2.0 per cent

Bangladesh 2002-2005: 1.9 per cent

Sri Lanka 2000-2008: 0.1 per cent

Nepal 1999-2008: 2.9 per cent

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Average number of months without work in the past year, casual labourers in India, 2009-2010, by sector

Agriculture: 1.4 months

Rural non-farm: 1.1 months

Urban: 0.9 months

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Share of rural and urban workers in India

Rural 2009-2010

Casual labour: 38 per cent

Self employed: 54 per cent

Regular wage or salaried: 8 per cent

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Urban 2009-2010

Casual labour: 17 per cent

Self employed: 41 per cent

Regular wage or salaried: 43 per cent

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Annual growth in GDP per capita, by region, 2001-2010

South Asia: 5.9 per cent

East Asia and Pacific: 8.4 per cent

Latin America and Caribbean: 2.8 per cent

Middle East and North Africa: 3.0 per cent

Sub-Saharan Africa: 2.5 per cent

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Annual growth in GDP per capita in South Asia, by country, 2001-2010

India: 6.6 per cent

Pakistan: 2.8 per cent

Bangladesh: 4.3 per cent

Sri Lanka: 4.9 per cent

Nepal: 1.9 per cent

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Severity of constraints reported by South Asian benchmark firm in the urban formal sectors

i) Political instability

ii) Telecoms

iii) Courts

iv) Business licensing

v) Transport

Note: A benchmark firm is a medium size manufacturing firm with 30 employees that is domestically owned, does not export or import, is located in a large city, and did not expand employment in the preceding three years.

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Top five constraints reported by Indian benchmark firm in the urban formal sector

India

i) Electricity

ii) Corruption

iii) Tax administration

iv) Labour regulations

v) Labour skills

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Per cent of Indian firms expected to give gifts to public officials, by type of interaction

Construction permit: 67 per cent

Meeting with tax officials: 57 per cent

Operating licence: 55 per cent

Import licence: 48 per cent

Electrical connection: 38 per cent

Water connection: 26 per cent

Government contracts: 24 per cent

Phone connection: 19 per cent

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Weeks of wages paid in severance by selected length of service.

India

One-year service: 2 weeks

Five-year service: 11 weeks

10-year service: 21 weeks

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Pakistan

One-year service: 4 weeks

Five-year service: 21 weeks

10-year service: 43 weeks

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Bangladesh

One-year service: 5 weeks

Five-year service: 25 weeks

10-year service: 50 weeks

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Sri Lanka

One-year service: 11 weeks

Five-year service: 54 weeks

10-year service: 98 weeks

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Nepal

One-year service: 4 weeks

Five-year service: 21 weeks

10-year service: 43 weeks