Changing Structure of the Service Sector Employment in India Rakkee Thimothy

Introduction Services represent a heterogeneous group of activities and has now become a prominent sector in the economies of most developed and developing countries, in terms of its contribution to national income, trade flows and foreign direct investment. The case of India is also not very different, although the recent euphoria is created by increasing tradability caused by the changing nature of services, invention of technology, and opportunities opened by General Agreement on Trade in Services. The service sector in India is characterized by the asymmetrical relationship between income and employment generation. The increasing share of services in GDP (54.1%) and stagnant employment generated (24%) from the sector can have grave implications for the country where unemployment continues to be a major problem. The reasons for the asymmetrical relationship in income and employment generation, is embedded in the pattern of service sector growth experienced in the country. Objective, Methodology and Data sources The present study is an attempt to understand the changing structure of service sector employment in India over the years, at disaggregated level. For the purpose changes in the nature, pattern and trends in service sector employment will be examined. The industrial classification of work force will be analysed at single, two and three-digit level, capturing differences in male and female employment in rural and urban areas. The time frame for the study has been chosen, from 1970-2004, taking into account the period, which witnessed service sector growth in India, apart from the consideration of comparable data sources which includes NSS quinquennial rounds on employment and unemployment (32nd, 38th, 43rd, 50th, 55th and 60th) and the Census of India- Economic Tables for 1981, 1991 2001.

Research Scholar, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi e-mail: rakheethimothy@gmail.com

Changing Structure of the Service Sector Employment in India

Section I Introduction Service sector once considered to be unproductive in conventional economic theory has now become a prominent sector in the economies of most developed and developing countries, in terms of its contribution to national income, trade flows and foreign direct investment. Invention of technologies and changing nature of services are some factors responsible for this phenomenon. The case of India is not different from the global picture. The service sector is now considered to be engine of growth in the country, with 54.1% contribution to GDP (GOI, 2006) and significant share in other macro economic variables.1 However, despite the structural change2 experienced in the generation of income, the employment generated in service sector continues to be low, around 24% (NSS, 2000). In this context we intend to undertake a detailed study on the structure of service sector employment in India, to capture changes taking place at the sub sectoral level and to identify possible explanation for such phenomenon. The rest of the paper is organised as follows. Section II deal with the conceptualisation of services and situates the service sector in economic theory. Section III presents a brief review of the nature of service sector growth in Indian economy, followed by section IV, which provides an analysis of trends and patterns of service sector employment. And section V concludes. Section II (a) Conceptualisation of Services The service sector often used synonymous with tertiary or residual sector, conventionally represented a heterogeneous group of economic activities that are non storable, non-transferable and intangible. Though the division of the economy into
1

Services contribute 30% of the total FDI flow in 2003 and growth of service trade during 1990s was around 6.5% and share in total trade 24%. India expanded its market share in world service export from 0.6% to 1.3 percent and became the 18th largest service exporter. 2 In the discipline of economics, the term structural change is used to represent variations in the relative size of primary, secondary and tertiary sectors in terms of its share in output, employment and productivity or in other macro economic variables. In the present study the term denotes changes occurring between or within sectors.

primary and secondary sectors dates back to the physiocrats, the tertiary sector did not receive much attention, due to their small share compared to other sectors and the implied notion that tertiary activities are luxurious. For the same reason it received mere passing reference in classical and Marxist writings, where it was considered as unproductive. Services as category, gained significance during the first quarter of the 20th century and their role in the process of economic development were largely captured by the stage theories of development. For the first time in 1939, Fisher classified the economy into primary, secondary and tertiary sector. Later Kuznets introduced a more neutral term services instead of tertiary, there by bringing the sector into economic discussion (Kuznets, 1972). However there was no consensus, on what constitutes the service sector not only in the work of different authors3 but also in the work of the same author.4 Although a service was generally understood as an economic activity other than which produced goods, there existed non-agreement on the dividing line between goods and services or what lies in the boundaries of the service sector (Fuchs, 1968; Stigler, 1956). The nature of output, simultaneity of production and consumption, organization of production and the level of capital intensity were used to define service. To Hill, a service may be defined as a change in the condition of a person, or of a good belonging to some economic unit, which is brought as the result of the activity of some other economic unit, with the prior agreement of the former person or economic unit (Hill 1977: 318). With the increasing role of services, there emerged a series of studies that classified services according to their nature, stage of consumption, thereby providing a framework to define what falls in the category of services.5 For the purpose of the present study, we have included agriculture, livestock, fisheries, forestry mining and quarrying under primary; manufacturing, construction, electricity, gas and water supply under secondary and all other economic activities like

The sub sectors transport, communication and public utilities, has received differential treatment from scholars, on whether they fall in services or in manufacturing. See Maurice Lengell `e 1966; George J. Stigler 1956; Victor R. Fuchs 1968; B.M Deakin and K.D. George, 1965; J.A Dowie 1966 and Gur Ofer, 1967 for details. 4 For instance, initially Simon Kuznets has included transport, communication and public utilities in service sector but in his later works it was classified under industry (Simon Kuznets, 1955, 1972). 5 For instance see Bhagwati (1984), Katouzian (1970), Elfring (1989) and WTO classification.

trade and hotels, transport and communications, financial and business services, and community and personal services in service sector activities. (b) Situating Services in Economic Theories Theories dealing with the dynamics of the service sector in the process of economic growth can be broadly grouped under two heads: that dealing with the growth of service sector in the developed countries and that explaining service sector growth in the less developed countries. While stage theories of development capture the former, an explanation of the experience of service sector growth in the less developed countries is found in the surplus labour hypothesis and in arguments put forward by the dependency school. The stage theories suggest that countries pass through a sequence of phases in the course of development and an advanced economy is characterized by a larger contribution of services in its national income and employment. Though stages in the growth processes did receive attention by earlier theorists6, it was Fishers study that brought the service sector to central stage (Fisher 1935). It was pointed out that higher average level of real income per head is always associated with a high proportion of the working population engaged in tertiary industries and vice versa (Cark, 1940). A relatively high-income elasticity of demand for services compared to goods and low productivity per worker in services compared with other sectors, were the reasons identified to explain this phenomenon. However both the arguments were met with wide criticism. As pointed out by many, services consist of activities with varying income elasticity of demand (Summers, 1985) and there is no strong evidence to show that growth in service sector in the advanced countries has been the result of higher income elasticity of demand for services compared to goods (Stigler, 1956; Fuchs, 1968; Worton, 1969; Gershuni and Miles, 1983). Studies also point out the variation of the relative importance of different sub-sectors during different stages of development (Bauer and Yamey, 1951; Katouzian, 1970; Bhalla, 1971). However the analytical argument of
6

Stage theorization can be traced to the writings of Aristotle, William Petty and Adman Smith, which were later continued by Frederich Lit of German Historical School. For a detailed discussion see Hoselitz 1960; Brenner, 1965; Datta, 1973.

Fisher and Clark was given an empirical grounding by Kuznets, in a cross-sectional analysis covering 25 countries for more than a century (Kuznets, 1972). His argument was later strengthened by the findings of Yves Sabolo (1975), Lyn Squire (1981) and Paul Bariroch (1975). While the study by Fuchs (1968) explained the service sector growth as due to low productivity, questions were also raised on the underestimation of services output (Griliches, 1992). The decline in manufacturing and the corresponding shift to services were widely held to be unsupportable in the long run, since services depend critically on manufacturing for their existence. However the increasing similarity of services with commodities and the changing trade regime making services tradable across borders has enabled the service sector to emerge as the major driving force in economic growth. In less developed countries, income elasticity of demand for services sector cannot explain high service growth (Bauer and Yamey, 1951 and Bhalla, 1970). Excess labour supply, is explanation provided in the context of less developed countries, where the sub sectors that experience growth are petty services that require little capital and skill and to which entry is relatively easy (Kuznets, 1959), limiting the size of employment only to the supply of labour offered at that wage (Udall, 1976). Another explanation for the service sector growth in less developed countries is the one provided by the dependency school. According to Andre Gunder Frank (1978) and Samir Amin (1974, 1976), the hypertrophy of the service sector in the less developed countries is deeply embedded in the historical development process of these countries. Distortion towards the service sector according to Amin, in the conditions governing the integration of pre-capitalist societies into international capitalist market and he notes that the larger is the degree of integration, larger is the size of the tertiary sector (Amin, 1974, p: 194 and 1976, p: 245-239). According to Amin, Clarks theory fails to explain service sector growth in the periphery, where the reasons for the growth lies in diverting local capital from industry to commerce, which helps export and creates large scale unemployment.

To arrive at a meaningful explanation for service sector growth there is a need to undertake an enquiry that is economy specific, as each individual economy has a specific trajectory of development, which also reflects on sectoral growth pattern. It is in the above theoretical background we intend to understand the nature and pattern of service sector employment in India. Section III Service Sector in Indian Economy The disproportionality of service sector growth in the Indian economy was noted during the seventies, when its contribution to national income was close to 40%, and employment stagnated around 20% (Mitra, 1988; Mazumdar, 1995). The services growth in India was attained before the full development of industry, with the net result that per capita income from this sector exceeded per capita income of primary and secondary sectors by more than fifty percent, distinct from other country experiences (Mitra, 1988). Such predominance of services was attributed to the de-industrialisation process pursued in British India (Bagchi, 1982) and can have serious implications for inflation, income distribution and balance of payments (Bhattacharya and Mitra, 1990). As pointed out earlier at present services contribute more than half of countrys GDP. The following table shows the contribution of the service sector in growth rate and GDP share for the past two decades. It was after 1993-94, the services share in GDP began to increase steadily, although in the earlier decade it around 40%. And the sectoral contribution7 of service sector in GDP growth for the period 1983-84/93-94 and 199495/2004-05 was 48 and 71 percentages respectively. Table 1: Growth Rate and Sectoral Share (%)
Sector Primary Secondary Services GDP Growth Rate Share in GDP 1983-84/93-94 1994-95/2004-05 1984-85 2004-05 3.08 2.37 41.02 22.81 5.93 6.39 22.04 24.78 6.73 8.40 36.94 52.40 5.18 6.20

Source: CSO, 2005 Note: Growth rates are annual averages, calculated from GDP at constant prices (1993-94)
7

Sectoral contribution is computed following the methodology of Chenery and Syrquin using the expression: gv= Pigvi, where gvi and gv are the growth rates of sector Vi and the total output V, respectively (V=Vi), and the wei ghts are the sectoral output shares, Pi=Vi/V. Pigvi is the contribution of I ith sector to overall growth.

Within the services, sub sectors like banking and insurance, followed by communication have the highest growth rate during 1997-98 to 2002-03, although trade, banking and insurance contribute the largest share in GDP among the various service sub sectors (see Table 2). In 1990s, the business sector recorded high growth rates, although its share in GDP continues to be low. In communication services, the growth rate was mainly contributed by telecom sector growth; in the case of banking the moving sub sector was non-banking financial intermediaries and education and health services in the case of residual services (Gordon and Gupta, 2004). Table 2: GDP Growth and Sectoral Shares
Sector Avg. Growth in 1950s-70s (Share in GDP in 1980) Avg. Growth in 1980s (Share in GDP in 1990) Avg. Growth in 1990s (Share in GDP in 2000) Trade and Hotels Trade 4.8(11.7) 5.9(11.9) 7.3(13.7) Hotels & Restaurants 4.8(0.7) 6.5(0.7) 9.3(1.0) Transport and others Railway 4.2(1.5) 4.5(1.4) 3.6(1.1) Transport by other 6.3(3.6) 6.3(3.8) 6.9(4.3) means Storage 5.5(0.1) 2.7(0.1) 2(0.1) Communication 6.7(1.0) 6.1(1.0) 13.6(2.0) Finance Banking 7.2(1.9) 11.9(3.4) 12.7(6.3) Insurance 7.1(0.5) 10.9(0.8) 6.7(0.7) Real Estate 2.6(4.0) 7.7(4.8) 5.0(4.5) Business Services 4.2(0.2) 13.5(0.3) 19.8(1.1) Legal Services 2.6(0.0) 8.6(0.0) 5.8(0.0) Residual services Public Administration 6.1(5.3) 7.0(6.0) 6.0(6.1) Personal Service 1.7(1.6) 2.4(1.1) 5.0(1.1) Community Services 4.8(4.0) 6.5(4.3) 8.4(5.5) Other Services 3.4(1.1) 5.3(1.0) 7.1(0.7) Source: Reproduced from Gordon and Gupta (2004) computed from National Accounts Statistics

As pointed out earlier, the Indian service sector employs a lower proportion of labour force, compared with its contribution to national income, and the growth process of service sector is termed as jobless, which is reflected in the declining employment elasticity8, which is less than unity in all cases. The decline in employment elasticity was sharper after the 1990s. Apart from the general fall in employment elasticity, in activities
8

Calculated as, the percentage changes in employment divided by the percentage changes in GDP in each period. Increase in elasticity can occur due acceleration in the growth of productivity per person employed, which is a desirable outcome, especially if it is taking place in sectors where productivity per person employed is very low. Employment elasticitys may be very low in sectors where there is a great deal of under-employment, which means there is considerable room for output to expand without an expansion in measured employment.

like banking, where income growth is high, displays declining employment growth. In banking and finance there has been a fall in the employment elasticity, probably due to computerization of jobs, despite a tremendous increase in banking activities during last few years. Often the boom in information technology (IT) is pointed as a visible outcome of service sector growth. But the truth is that the contribution of IT to the countrys GDP is only around 4.1% (GOI, 2006) and employs less than one million people in the total labour force of 450 million (Dasgupta and Singh, 2005). Further taking into consideration the level of education accessible to majority of workforce in India, IT is not a prescription for the unemployment problem in India at least in the near future. As evident from the below table, employment elasticity turned to be negative in the case of public administration and other residual services, in the last ten year. Generally we can say that the disproportional relationship in income and employment in the services have increased during the post liberalization period. Table 3: Employment Elasticity to GDP
1977-83 1983-87 1987-93 1983-94 1994-00 Trade 0.71 0.85 1.08 0.97 0.58 Hotels & Restaurants 0.69 0.91 0.49 0.63 0.35 Transport 1.00 0.55 1.08 0.79 0.49 Banking & Finance 1.21 0.55 0.87 0.70 0.45 Public Administration 0.87 0.60 0.95 0.71 -0.08 Residual Services 0.62 0.17 1.86 0.92 -0.26
Source: CSO, 2005 for GDP figures and estimated growth of usual status workers from different NSS rounds

A reason often pointed out for the slow employment growth in Indian service sector is the high labour productivity and the income growth happening in certain sub sectors that uses skilled labour (Gordon and Gupta, 2004). This is in sharp contrast with other country experiences, where high growth rate of employment in services is explained with low productivity in services. However demand push factors only partly explain the service sector growth in India (Handsa, 2002). Factors like unprecedented increase in government activities9, demonstration effect creating demand pattern similar to those of high income countries (Panchamukhi et al., 1986), outsourcing of certain manufacturing activities to service sector (Bhattacharya and Mitra, 1989), urbanization
9

However Duttas (1989) work on the tertiary sector over the period 1950 -51 to 1983-84 shows that there is no significant difference between the rate of growth of net material product and net domestic product. While R. Nagaraj (2000) has argued that growth of service sector is not statistically significant for the 1990s.

and trade facilitated by new technology (Mitra, 1992; Gordon and Gupta, 2004) act as pull factors for the growth of service sector. The extent of disproportionality between output and employment in service sector also differs between organised and unorganised activities. While in the organised service sector, income grew more than employment; the relationship is reverse in the unorganised sector (Bhattacharya and Mitra, 1989). This happens in less developed countries where service sector grow not because of high- income demand, but due to unemployment (Ghosh, 1991). As every supply of labour creates its own employment in services, by sharing out a given amount of work (Bhalla, 1970) and such a process cannot be considered as a sign of economic development (Rao, 1954). The little increase in service sector employment is often as a result of the proliferation of low paid jobs, especially in the large private unorganised sector within services (Chandrasekhar and Ghosh, 1999; Joshi, 2004). Even in the case of organised services employment opportunities is decreasing in those sectors where income growth is high, as in the case of finance, which is a matter of concern (see Table 4). Table 4: Share of Services in Organized Employment (%)
Sectors Wholesale & Retail Trade Transport, Storage Communications Financial Services Community, Personal & Social Services
Source: Planning Commission, 2001

1993-94 1.62 30.11 43.36 34.02

1999-00 1.31 21.44 32.67 34.61

The nature of employment10 in services varies from high percentage of selfemployed in trade and hotels to large share of casual workers in residual category. Also public administration within the residual services provides significant amount of regular employment (see Table 5). Our preliminary enquiry with respect to age composition shows that, in trade and hotels and residual services, there is a large percentage of child labour, and persons above 60+ years indicating the informal nature as well as the low quality of service sector jobs (see Table 6).
10

The nature of employment can be self-employed, regular or causal. Self-employed worker are those who work on their own farm or non-farm based enterprise or those how are engaged independently in a profession or trade on own account with one or more partners. It can be either as own account worker, employers or helpers. Regular workers are paid regular wages or salaries, while in the case of causal worker employment and payment are not regular.

Table 5: Nature of Employment in Services, 1999-2000 (%)

Rural Trade & Hotels Transport Finance Residual Services Urban Trade & Hotels Transport Finance Residual Services Self Regular Casual 68.0 9.0 20.0 12.8 13.6 27.2 2.2 4.3 2.1 17.0 73.0 50.6 73.6 20.8 42.7 10.6 13.5 23.6 5.3 8.2 2.2 10.5 57.5 31.4

Source: NSS 55th round, calculated from unit level data

Table 6: Age wise Distribution of Service Workers, 2001 (Main, %) Industrial Age group category 5-14 y 15-59 y 60+y Trade & Hotels P 14 19.9 24.6 M 19.3 22.4 26.7 F 3.7 8.1 14.5 Transport P 2.3 8.9 4.6 M 3.2 10.4 5.3 F 0.5 1.5 0.9 Finance P 1.4 4.3 3.7 M 1.5 4.5 3.9 F 1.2 3.1 2.3 P 11.2 21.7 18.3 M 9.1 19.6 17.1 Other Services F 15.3 31.9 24.5
Source: Census, 2001

From the discussion above we come to the conclusion that Indias service sector displays dualism in income and employment generation. However to locate the reasons for the lack of employment generation in service sector it is essential to understand the trends and pattern of service sector employment and changes over the years at the disaggregate level, which we do in the next section. Section IV Trends and Patterns of Service Sector Employment (a)Note on Data Source and Methodology The present analysis intends to understand changing structure of the service sector employment in India over the past twenty-five years, based on the Census and the NSS data. The general economic tables published by the Census of India for the years 1981, 1991 and preliminary results for 2001 and the NSS quinquennial employment and 10

unemployment survey for the years 1977-78 (32nd round), 1983 (38th round), 1987-88 (43rd round), 1993-94 (50th round) and 1999-2000 (55th round) are utilized for the purpose. While the Census classify workforce into main and marginal workers11, principal status (PS) and usual status (US) criteria12 is used by NSS to define employed. Although these concepts have been redefined over the years, no change in definition has occurred in the time frame of our study. The main workers as defined in the Census can be roughly equated with those employed in principal status as per NSS definition; however the marginal workers and those employed in subsidiary status are not strictly comparable. The NSS quinquennial rounds on employment and unemployment provides detailed information regarding the status (based on duration and multiple activities) and nature of employment (self-employed, regular or causal) in comparison with the Census data. However both the data sources underestimate the work participation rate, particularly that of women. The seasonality of the work, prevailing socio cultural values, and investigators bias are some of the probable reasons for this phenomenon (Hirway, 2002). Further it should be also noted that males employed in service sector have a higher chance of underestimation, due to the large concentration employment in petty services (ibid). Data is analysed at three levels; one-digit, two-digit and preliminary result of three-digit is presented to capture the trends and pattern of employment in service sub sectors by rural/urban and male/female categories. It should be noted that the national industrial classification has changed over the period under consideration.13 The results presented here are made comparable over the years for both the data sources till two-digit
11

The main worker is defined as one who participated in any economically productive work by his physical or mental activities for 183 days or more, in the past one year preceding the date of enumeration. And those worked for less than 183 days falls under marginal worker, other things remaining the same. 12 The status of activity on which a person spent relatively longer time of the preceding 365 days from the date of survey is considered as principal usual status of the person. A person who is considered as a nonworker (i.e. unemployed or out of labour force) who pursued some economic activity in a subsidiary capacity is called a subsidiary status worker. The principal and subsidiary status worker constitutes all workers. Principal status pertains to those with more or less stable employment. The other classification used by NSS includes current weekly status (CWS) and current daily status (CDS). For details see, NSS Reports. 13 In the study, the three Census years taken into account uses different National Industrial Classification (NIC). For instance in the Census 1981, 1991 and 2001, the NIC adopted are 1970, 1987 and 1998 respectively. With respect to NSS data till 50 th round NIC 1970 was in use, while 50th and 55th round has adopted NIC 1987 and 1998 respectively.

11

level. The NSS figures of employment from the particular round was projected on the work force estimates, from the interpolated Census rural-urban populations as on 1st March of the corresponding year, separately for rural males, rural females, urban males and urban females, to arrive at sectoral distribution of workers from NSS data. As Census data at two-digit level for the year 2001 are not yet available, we have projected the 2001 employment figures, based on the growth rate for the census years, 1981 and 1991. Simple statistical tools like percentage share analysis and compound growth rates are used to capture the trend and patterns of service sector employment. (b) One- digit Level Sectoral Pattern Before analysing changes in the service sector employment, let us begin with a brief discussion on the employment at broad economic classification. The primary sector continues to be the major employment provider, although over the years its share is decreasing and that of manufacturing and services increasing. As evident from the below table, over years employment in service sector is expanding, with an urban bias. In rural areas, services provide usual status employment for 18% of males and 6.6% of females, while the corresponding figures in urban areas are 59.5% and 49.5% respectively. Rural areas continue to be primary based and over the years no drastic change has occurred in the employment pattern in the sector. This indicates that at least in case of urban workers a structural change has occurred in favour of services. Between 1999 and 2000, the sectoral contribution of service sector employment decreased for urban males, while for urban females, the employment increased. Though a large percentage of the service sector employment is in causal and self-employed category, there is no significant difference between principal status and all workers, in both rural and urban areas. However as noted above, if we take into account the current weekly and current daily status, the fluctuations in the employment would become clearer. From the above table we can conclude that at the broad level no drastic change has occurred in the structure of employment generation in the Indian economy.

12

Table 7: Employment by Broad Industrial Group (per 1000 Population)

NSS Round Rural 32 38 43 50 55 61 Urban 32 38 43 50 55 61 Male Female Primary Secondary Services Primary Secondary Services ps all ps all ps all ps all ps all ps all 804 806 89 88 107 105 868 881 71 67 61 51 772 775 102 100 123 122 862 875 78 75 57 48 739 745 123 121 138 134 825 847 112 100 63 53 739 741 113 112 148 147 847 862 91 83 62 55 712 714 127 126 161 160 841 854 93 89 66 57 662 665 157 155 181 180 814 833 108 102 76 66 102 97 85 87 65 60 106 103 91 90 66 61 338 344 343 331 329 346 338 342 340 329 328 344 559 551 572 582 606 595 557 550 569 581 606 595 251 255 218 193 146 147 319 310 294 247 177 181 327 307 324 299 293 303 324 306 317 291 293 324 421 430 458 508 561 549 357 376 389 462 529 495

Source: NSSO, 2006

Though structural change with respect to employment is lacking in Indian economy at the broad level, certain changes has occurred in service sub sectors. As indicated by the Census data, between 1981 and 2001, trade and hotels emerged as the largest employment provider followed by residual services for main workers in urban areas. For main workers in the rural areas and marginal workers a similar trend is observed though residual services continue to be the major employment provider. Employment registered a decrease for marginal workers in trade and hotels and an increased for marginal workers in residual services during 1981-1991, which was reversed during 1991-2001. In the case of main workers a similar pattern was observed in the case of residual services. The decreasing employment opportunities in government services especially after 1990s could be one reason for this pattern. Transport and finance improved their position consistently during 1981-2001, for all categories of workers.

13

35 30 25

Figure 1: Sectoral Share of Service Employment (Main Workers)

Share

20 15 10 5 0

Trade & hotels

1981 P 1991 P 2001 P

Transport
1981 R

Sector 1991 R

Finance
1981 U

Residual services
1991 U 2001 U

2001 R

30 25 20

Figure 2: Sectoral Share of Service Employment (Marginal Workers)

Share

15 10 5 0

Trade & hotels

1981 P 1991 P 2001 P

Transport
Sector
1981 R 1991 R

Finance
2001 R

Residual services
1981 U 1991 U 2001 U

Source: For figure 1 & 2, Census of India, 1981, 1991 and 2001

Now coming to the employment patterns with respect to gender, in the case of males the structural shift from residual services to trade and hotels is much pronounced, for both main and marginal workers, in rural and urban areas. Transport and finance show an increasing trend in all the above categories. Trends in the case of residual services (increase during 1981-91 and decrease during 1991-2001) and trade and hotels (decrease during 1981-91 and increase during 1991-2001) are observed in the case of male marginal workers, while male main workers display trend only with respect to residual services (see Figure 3 and 4).

14

35 30 25

Figure 3: Sectoral Share of Male Employment in Services (Main Workers)

Share

20 15 10 5 0 Trade & hotels

1981 P 1991 P 2001 P

Transport
1981R

Sector

Finance

Residual services
1981 U 1991 U 2001 U

1991 R

2001 R

30

Figure 4: Sectoral Share of Male Employment in Services ( Marginal Workers) 25

20

Share

15 10 5 0 Trade & hotels

1981 P 1991 P 1981 U

Transport
2001 P 1991 U

Sector

Finance
1981R

Residual services
1991 R 2001 R

2001 U

Source: Figure 3 & 4, Census of India, 1981, 1991 and 2001

Female employment pattern presents contrasting picture in comparison with males. Not only the percentage share of females employed in services is less, but also the structural change that is evident in the case of males in service sub sectors is lacking as far as females are concerned. The residual sector provides the largest employment in rural and urban areas for main and marginal female workers. The employment of female marginal workers shows a decreasing sectoral share in both trade and hotels and residual services. However an increasing trend is displayed by finance and transport sector in urban areas, during 1991-2001 (see figure 5 and 6). The shift from residual services to trade and hotels as evident in the employment figures is total driven by the male work force. And it requires further analysis so as to find out why the structural change evaded female workers. 15

60 50 40

Figure 5: Sectoral Share of Female Employment in Services (Main Workers)

Share

30 20 10 0

1981P

Trade & hotels 1991P 2001P

1981R

Transport 1991 R

2001 R

Finance 1981 U

Residual services 1991 U 2001U Sector

35 30 25

Figure 6: Sectoral Share of Female Employment in Services (Marginal Workers)

Share

20 15 10 5 0 Trade & hotels Transport Finance Residual services Sector

1981 P

1991 P 1981 U

2001 P 1991 U

2001U

1981R

1991 R

2001 R

Source: Figure 5 & 6, Census of India, 1981, 1991 and 2001

Evidences from the NSS quinquennial rounds are in conformity with the trends displayed by the Census data. As evident from the table below in the case of males, in both rural and urban area, trade and hotels is the major employment provider. In urban area, finance and transport sector improved its share in employment, especially during 1999-2004. In the case of females, the major employment provider continues to be residual services, despite the rapid growth of trade and hotels in urban areas. The increased attempt to capture women work may be one reason for this phenomenon, as females gets the status of employed in personal service a sub sector of residual services. As pointed out earlier, although there is no significant difference between principal and all workers.

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Table 8: Sectoral Share of Employment in Services (PS, %)

Rural Male 38th 43rd 50th 4.4 5.2 5.5 1.8 2.1 2.2 .3 .4 .4 5.9 6 6.7 Urban Male 38th 43rd 50th Trade & Hotels 20.21 21.5 21.9 Transport 10.05 9.8 9.8 Finance 3.2 3.5 3.8 Other Services 21.6 21.8 22.6 Sectors Trade & Hotels Transport Finance Other Services Rural Female 55th 38th 43rd 50th 6.8 2.2 2.4 2.2 3.2 6 1 1 .5 .2 .1 .1 5.6 3.4 3.6 3.9 Urban Female 55th 38th 43rd 50th 29.3 9.9 10.9 10.7 10.4 .1 1.2 1.5 4.4 1 1.4 2.2 16.5 30.5 32.2 36.6 55th 2.3 1 .1 4.2 55th 16.4 2 2.8 35.0

Source: NSSO (1988, 1994, 1996 and 2000)

Table 9: Sectoral Share of Employment in Services (All, %)

Sector Trade & Hotels Transport Finance Other Services Rural Male
32
nd

Rural Female
th

38

43

rd

50

th

55

th

32nd

38th

43rd

50th

55th

4.0 4.4 1.3 1.7 0.2 0.3 5.2 5.8 Urban Male
32nd 38th

5.1 2 0.4 5.8

43rd

5.5 2.2 0.4 6.6

50th

6.8 3.2 0.5 5.6

55th

2.3 1.9 2.1 0.1 0.15 0.1 0.02 0.02 3.7 2.8 3 Urban Female
32nd 38th 43rd

2.1 0.1 0.1 3.3

50th

2 0.1 0.1 3.6

55th

Trade & Hotels Transport Finance Other Services

21.6 9.9 3.0 21.5

20.3 9.9 3.1 21.4

21.5 9.7 3.5 21.7

21.9 9.7 3.8 22.6

29.4 10.4 4.5 16.5

9.8 1.2 0.8 30.4

9.5 1.5 0.8 25.8

9.8 0.9 1.2 26.6

10 1.3 1.9 33.1

16.9 1.8 2.5 31.7

Source: NSSO (1988, 1994, 1996 and 2000)

Trends of Growth From the sectoral share let us now move to growth rates. The service sector of Indian economy has become dynamic in the last decade in comparison with earlier periods as evident from the annual growth rates. The highest growth rate within service is observed in finance for males and females in urban area. During 1991-2001, trade and hotel and transport, displays better performance. Trends of growth in female employment indicate that structural change in employment as visible in the case of the males may happen for females also. Compared to 1981-91, the last decade recorded an increase in the number of marginal workers in finance and trade and hotels. The high growth rates of employment in sub sector, other than residual services indicate that, jobs created in the above category are more of an irregular nature. However it should be noted that though the growth rate of employment in finance sector appears to be the high, its sectoral contribution to total employment continues to be low. 17

Figure7: Growth rate of Service Sector Workers, Main

20 15
Rate

10 5 0 -5 Trade & hotels

RM1991-2001 UM1991-2001

Transport

Finance
RF1981-1991 UF1981-1991

Residual services
RF1991-2001 UF1991-2001

RM1981-1991 UM1981-1991

Sector

50 40 30

Figure 8: Growth rate of Service Sector Workers, Marginal

Rate

20 10 0 -10 -20 RM1981-1991 UM1981-1991 RM1991-2001 UM1991-2001 RF1981-1991 UF1981-1991 RF1991-2001 UF1991-2001

Trade & hotels

Transport

Finance

Residual services Sector

Source: Figure 7 & 8, Census of India, 1981, 1991 and 2001

Table 10: Annual Growth Rate of Employment in Services (Principal, %)

Rural Male Rural Female Sectors 1983-87 1987-93 1993-99 1983-87 1987-93 1993-99 Trade & Hotels 4.78 4.12 5.15 3.51 -0.67 2.05 Transport 5.17 3.92 8.62 -29.18 1.07 1.15 Finance 7.29 2.96 5.38 -11.77 1.07 1.15 Residual Services 1.63 5.26 -2.77 2.70 2.70 2.66 Urban Male Urban Female
1983-87 1987-93 1993-99 1983-87 1987-93 1993-99

Trade & Hotels Transport Finance Residual Services

3.88 2.08 4.65 2.78

4.79 4.40 6.13 5.16

9.00 4.07 5.90 -3.43

4.60 -4.34 10.15 3.72

4.08 9.23 14.35 7.18

11.68 8.61 7.61 1.63

Source: NSSO (1988, 1994, 1996 and 2000)

18

The annual growth rates computed from the NSS rounds also reveal similar picture. While the highest growth rate of urban employment is recorded in transport and finance, for rural females trade and transport recorded highest growth rate. The growth rate of all workers is higher than the principal status workers, especially in finance implying that the growth of subsidiary status employment is increasing. Table 11: Annual Growth Rate of Employment in Services (All, %)
Rural Male Sectors Trade & Hotels Transport Finance Residual Services 3.40 8.17 9.80 4.16 4.65 4.23 4.89 4.65 8.15 2.67 1.45 5.36 Urban Male 3.73 2.10 4.77 2.78 4.69 4.31 6.04 5.16 4.93 8.40 5.16 -2.68 -0.94 -5.05 6.51 -3.19 Rural Female 2.27 2.32 15.51 2.32 2.03 4.29 Urban Female 3.80 -6.71 11.47 3.67 4.77 12.31 14.40 9.01 -1.41 -0.45 -0.45 1.30
1977-83 1983-87 1987-93 1993-99 1977-83 1983-87 1987-93 1993-99

1977-83 1983-87 1987-93 1993-99 1977-83 1983-87 1987-93 1993-99

Trade & Hotels Transport Finance Residual Services

2.72 3.99 5.26 3.90

8.95 4.16 6.25 -3.54

2.72 8.44 5.20 0.06

12.18 7.80 6.70 0.14

Source: NSSO (1981, 1988, 1994, 1996 and 2000)

The analysis of service sector employment at one-digit level indicates that there is a shift of employment from residual services to trade and hotels. Although finance and transport, records high growth rate, the quantum of jobs created is comparatively less. Again is should be noted that in residual services the employment is decreasing in public services and the new jobs created either in residual services or in trade and hotels are insecure jobs. Thus it is not only the lack of employment generation in services, but also the low quality of employment generated also should be a matter of our concern. With this understanding we will probe more into the data to find out the merging pattern at the sub sectoral level.

19

(c)Two digit level14 (i) Trade and Hotels Sectoral Pattern Within the services, trade and hotels deserves special attention due to its large and increasing sectoral contribution to employment. The labour intensive nature of activities in the sector could be one reason for this phenomenon. Evidence from the Census data15 indicates that within trade and hotels, retail trade in food generates largest employment followed by retail trade not else where classified (n.e.c) and restaurants and hotels. During 1981-2001, except retail trade n.e.c all the sub sectors register a declining growth. Even if we exclude the 2001 figures, the employment pattern remains the same except the slight increase noted in retail trade in textiles.
100%

Figure 9: Sectoral Share of Employment in Trade & Hotels (Main Workers)

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% T1981 T1991 T2001 A B C R1981 R1991 R2001 D E F U1981 U1991 U2001 Sector

Source: Census of India, 1981, 1991 and 2001 Codes:(A)-wholesale trade in agricultural raw materials, live animals, food, beverages, intoxicant and textiles, (B)-retail trade in food and food articles, beverages, tobacco and intoxicants, (C)-retail trade in textiles, (D)-retail trade in fuels and other household utilities and durables, (E)-retail trade n.e.c, (F)restaurants and hotels.

There are no striking differences in the pattern of employment in trade and hotels between males and females. However the share of male employment is higher in the
14

Before proceeding to examine the employment at two-digit level certain things need to be noted. As mentioned earlier the economic tables for the Census 2001 is not yet available and the figures (sectoral share and growth rate) presented are projected based the previous decadal growth rate of workers in that particular category. This leads to certain errors if we read these figures in the light of evidences available at one-digit level. For the same reason discussion will be limited to 1991 in the case of the Census data, except in few cases. 15 Results presented here are limited to categories who contribute significantly to employment in trade and hotels.

Share

20

sector and displays less fluctuation compared to the female employment. For instance, the decrease of retail trade in food is not very sharp for males particularly in urban areas. The marginal workers engaged in trade and hotel displays a similar trend as main workers in rural and urban areas. Females record higher share among marginal workers especially in certain sectors like retail trade in food, textiles, trade n.e.c and restaurants and hotels. In the case of retail trade in food and restaurants and hotels high share of marginal workers are seen in rural areas, while in the other two categories such a phenomena is seen more in urban areas. However the fluctuations in the employment are sharper in the case of marginal workers and probable causes are discussed while analysing employment at three-digit level (see Appendix Table 1A).
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Figure 10: Sectoral Share of Male Employment in Trade & Hotels (Main Workers)

Share

T1981 T1991 T2001 A B C

R1981 R1991 R2001 D E F

U1981 U1991 U2001

Sector

100%

Figure 11: Sectoral Share of Female Employment inTrade&Hotels (Main Workers)

80%

Share

60% 40% 20% 0% T1981 T1991 T2001 A B C R1981 R1991 R2001 D E F U1981 U1991 U2001 Sector

Source: Figures 10 & 11, Census of India, 1981, 1991 and 2001 Codes:(A)-wholesale trade in agricultural raw materials, live animals, food, beverages, intoxicant and textiles, (B)-retail trade in food and food articles, beverages, tobacco and intoxicants, (C)-retail trade in textiles, (D)-retail trade in fuels and other household utilities and durables, E)-retail trade n.e.c, (F)restaurants and hotels.

21

The evidence from different NSS rounds shows similar pattern as the Census data. Results presented here are only of those sectors that contribute significantly to the employment in trade and hotels.16 The NSS data reveals that retail trade of food articles contributes high share in the total employment, followed by restaurants and hotels and retail trade n.e.c. From the 43rd NSS round there is a decrease in the sectoral share of retail trade in food, which is compensated by corresponding increasing in the retail trade n.e.c. The share of employment in restaurant and hotels shows a slight decrease for all workers except rural female. But in the case of all workers even for rural females employment in restaurants and hotels is decreasing. The share of employment especially of urban males in retail trade of textiles is increasing especially after 1983. Table 12: Sectoral Share of Employment in Trade and Hotels (Principal, %)
Sector Retail trade in food Retail trade in fuel Retail trade n.e.c Restaurants & hotels Rural Male Rural Female 38th 43rd 50th 55th 38th 43rd 50th 60.59 59.62 54.55 39.71 63.43 66.67 63.64 8.20 7.69 5.45 4.41 12.96 8.33 4.55 6.61 7.69 12.73 13.24 5.56 4.17 9.09 12.98 11.54 10.91 10.29 14.81 16.67 13.64 Urban Male Urban Female 38th 43rd 50th 55th 38th 43rd 50th Retail trade in food 40.33 39.53 36.53 34.13 56.37 58.72 49.53 Retail trade in fuel 11.18 11.16 8.68 5.80 10.02 7.34 8.41 Retail trade n.e.c 11.92 13.49 16.44 15.02 10.43 8.26 13.08 Restaurants & hotels 14.05 13.49 12.33 10.58 14.78 17.43 14.95 55t 52.17 4.35 13.04 21.74 55th 54.27 6.10 11.59 14.63

Source: NSSO (1988, 1994, 1996 and 2000) Note: The results presented here are two-digit level industry share over corresponding industry at one digit level, unlike Census data where percentages were calculated over total workers.

Table 13: Sectoral Share of Employment in Trade and Hotels (All, %)

Rural Male Rural Female nd th rd th th Sector 32 38 43 50 55 32nd 38th 43rd Retail trade in food 61.22 60.78 60.78 54.55 39.71 59.08 63.21 66.67 Retail trade in fuel 9.67 8.26 7.84 5.45 1.47 19.26 13.47 9.52 Retail trade n.e.c 5.87 6.42 7.84 12.73 16.18 6.37 6.22 4.76 Restaurants & hotels 12.10 12.84 11.76 10.91 10.29 13.50 13.99 14.29 Urban Male Urban Female nd th rd th th 32 38 43 50 55 32nd 38th 43rd Retail trade in food 40.74 40.38 40.00 36.53 34.35 56.94 55.24 58.16 Retail trade in fuel 11.17 11.14 11.16 8.68 1.70 11.86 9.74 7.14 Retail trade n.e.c 10.63 12.18 13.49 16.44 11.90 10.32 11.64 8.16 Restaurants & hotels 14.15 14.00 13.49 12.33 10.54 13.26 14.92 17.35
Source: NSSO (1981, 1988, 1994, 1996 and 2000)
16

50th 61.90 4.76 9.52 14.29 50th 51.00 8.00 13.00 14.00

55th 60.00 5.00 20.00 20.00 55th 58.58 4.14 13.02 13.02

As the results are sample survey and reports employment figures per 1000 population there is a higher chance of not capturing certain types of employment.

22

Three-digit level Preliminary observation from the Census data at the three-digit level indicates that within the wholesale trade trade in basic foodstuff, live animals and poultry and textiles contributes the highest sectoral share. In the case of retail trade in food articles the major share is contributed by grain and grocery shops, vegetable and fruit selling and pan beedi and cigarette shops. And more urban males are employed in petty shops selling pan and beedi. The NSS data also reveals same trend but a higher proportion of people engaged in subsidiary status in the above categories. In the case of textiles, retail trade in non-ready made contribute bulk of the employment, with a bias towards urban areas. Now coming to the retail trade in fuels and other household utilities and durables, employment is concentrated in urban areas and biased towards males. In 1981 the major employment provided was trade in household fuels and by the year 1991, trade in electrical and electronic goods became the largest employment generating sub sector. This was followed by utensil shops and fancy stores. However the decline observed in the employment generated within retail trade in fuels continued to be unexplained. With respect to retail trade n.e.c, the major employment providers are miscellaneous retail trade, retail trade in books and stationeries and medical shops. While in the last category employment is biased towards females in the other two categories there is more male employment. Over the years the share of miscellaneous trade has increased, implying major chunk of the employment generated may be in petty shops. In the restaurants and hotels the major employment generators are restaurants, cafes and eating places again majority may be small establishments. Trends in Growth Evidences from the Census data reveals that within trade and hotels, the highest growth rate is recorded by retail trade n.e.c during 1981-1991.17 Although retail trade in food and hotels and restaurants accounts for the large sectoral share in employment, the decadal growth rate was lower. The higher growth rate of female employment retail trade in textiles and retail trade n.e.c would be due to the flexibility associated with female

17

Average annual growth rate are presented only for 1981-91decade due to reasons mentioned else where.

23

employment. Except in the case of retail trade in textiles and retail trade n.e.c, marginal workers employment showed negative growth rate (see Appendix Table 2A).
Table 14: Growth Rate of Employment in Trade and Hotels, 1981-1991 (Main Workers, %) Category Total Total R Total U Male Males R Male U Female Female R Female U Wholesale trade in agricultural raw materials 3.18 4.57 2.53 3.12 4.55 2.45 4.53 5.14 4.27 Retail trade in food 3.08 2.67 3.42 3.13 2.75 3.43 2.56 1.97 3.28 Retail trade in textiles 4.70 4.66 4.72 4.56 4.53 4.58 10.55 11.25 10.35 Retail trade in fuels 2.47 0.77 3.14 2.73 1.42 3.21 -1.20 -3.57 1.66 Retail trade n.e.c 7.66 10.44 6.62 7.48 10.23 6.48 10.86 12.90 9.57 Restaurants and hotels 2.32 2.31 2.33 2.28 2.30 2.26 2.92 2.33 3.68
Source: Census 1981 and 1991

The NSS data also reveals a similar trend in employment in trade and hotels. The highest growth was recorded in retail trade n.e.c, except for females during 1983-87. However retail trade in food shows a decreasing growth from the 50th quinquennial round. During the period 1977/78-1993/94, there is no significant difference in the growth rate of principal and all workers in trade and hotels, except in the case of females engaged in retail trade in food, where there is a higher growth recorded for subsidiary workers. Table 15: Growth Rate of Employment in Trade and Hotels (PS, %)
Rural Male Sector Retail trade in food Retail trade in fuel Retail trade n.e.c Restaurants & hotels Rural Female
1983-87 1987-94 1994-00 1983-87 1987-94 1994-00 4.44 3.44 8.02 2.33 2.29 -2.80 15.16 2.96 -1.32 0.78 5.98 3.94 4.54 -5.25 -2.28 5.97 -1.59 -12.01 16.10 -4.58 -1.92 1.15 9.70 12.03

Urban Male

Urban Female

1983-87 1987-94 1994-00 1983-87 1987-94 1994-00 3.46 3.14 3.84 -0.36 6.47 9.02 3.03 2.92 Source: NSSO (1988, 1994, 1996 and 2000)

Retail trade in food Retail trade in fuel Retail trade n.e.c Restaurants & hotels

3.14 -0.36 9.02 2.92

5.45 -1.71 -0.17 8.11

0.60 6.96 14.12 0.94

13.74 4.72 9.00 11.20

As noted earlier, trade and hotels provide employment to the largest segment of workers within services. Within trade and hotels, retail trade in food, retail trade n.e.c and trade and hotels, account for highest sectoral contribution in employment, while retail

24

trade n.e.c. and retail trade in textile records highest growth rate. Though NSS data do not record significant difference between principal and all workers, there is a high chance of labour being employed in more flexible arrangements, due to high private participation in these sectors. Further there is a move from retail trade in food articles to other durable commodities in employment pattern. And the higher share of hotels and restaurants can be explained with by the increased tourism and migration within the country along with changes in tastes and preferences. Table 16: Growth Rate of Employment in Trade and Hotels (All, %)
Rural Male
Sector

Rural Female

19778-83 1983-87 1987-94 1994-00 19778-83 1983-87 1987-94 1994-00 Retail trade in food 3.81 4.65 2.00 -1.53 6.14 3.36 0.81 -2.03 Retail trade in fuel 0.73 3.58 -3.07 -19.27 -2.52 -4.58 -10.93 -0.45 Retail trade n.e.c 5.84 8.91 14.83 10.09 4.21 -3.04 17.53 14.36 Restaurants & hotels 5.21 2.82 2.67 3.72 5.46 2.70 2.32 5.45

Urban Male

Urban Female

19778-83 1983-87 1987-94 1994-00 19778-83 1983-87 1987-94 1994-00 Retail trade in food 5.86 3.53 2.81 7.62 9.25 4.88 2.06 15.33 Retail trade in fuel 6.00 3.76 -0.45 -21.35 5.66 -2.44 7.18 -1.66 Retail trade n.e.c 8.98 5.86 8.92 2.14 12.59 -3.31 14.99 12.21 Restaurants & hotels 5.84 2.95 2.83 5.60 12.55 6.97 0.38 -15.76 Source: NSSO (1981, 1988, 1994, 1996 and 2000)

(b) Transport Sectoral Pattern Transport sector is the third largest employment provider within services and its contribution is increasing over the years. During 1981-1991, employment decreased in the sector, although its share improved in the last decade. The major sub sectors within transport are land transport and communication services. There is an increase in the share of services incidental to transport over the years, more in urban areas. Over the years the share of water transport in employment is decreasing and small increase is registered in air transport especially for urban females. In the land transport a large percentage of workers are employed in marginal category, especially males in urban areas (see Appendix Table 3A).

25

Table 17: Sectoral Share of Employment in Transport (Main, %)

Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Persons Land transport 12.15 11.15 9.87 9.73 9.56 8.64 13.69 12.12 10.43 Water transport 0.60 0.37 0.22 0.35 0.18 0.09 0.76 0.50 0.32 Air transport 0.13 0.13 0.13 0.04 0.05 0.05 0.19 0.19 0.18 Services incidental to transport 0.15 0.27 0.48 0.07 0.18 0.43 0.20 0.33 0.55 Storage and warehousing service 0.18 0.17 0.17 0.11 0.14 0.15 0.22 0.20 0.17 Communication services 1.83 1.44 1.10 1.98 1.48 1.02 1.73 1.41 1.11 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Male Land transport 13.32 12.43 11.17 10.68 10.62 9.73 15.00 13.53 11.85 Water transport 0.66 0.41 0.25 0.39 0.20 0.10 0.83 0.54 0.35 Air transport 0.14 0.13 0.13 0.05 0.05 0.06 0.19 0.19 0.17 Services incidental to transport 0.15 0.29 0.53 0.07 0.19 0.45 0.21 0.36 0.59 Storage and warehousing service 0.19 0.19 0.18 0.12 0.15 0.17 0.23 0.21 0.19 Communication services 1.92 1.50 1.13 2.17 1.60 1.09 1.76 1.41 1.10 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Female Land transport 2.34 1.53 0.88 2.02 1.06 0.41 2.55 1.82 1.23 Water transport 0.11 0.10 0.08 0.03 0.03 0.02 0.16 0.15 0.13 Air transport 0.09 0.12 0.13 0.03 0.02 0.01 0.13 0.17 0.21 Services incidental to transport 0.07 0.12 0.19 0.01 0.07 0.24 0.11 0.16 0.21 Storage and warehousing service 0.09 0.09 0.07 0.04 0.05 0.05 0.13 0.11 0.09 Communication services 1.09 1.03 0.86 0.48 0.52 0.41 1.50 1.34 1.14 Source: Census of India, 1981, 1991 and 2001

Evidence from the NSS data indicates that within the sector land transport provides the largest employment.18 However over the years there has been a gradual increase of urban females in communication services. Data also reveal that share of services incidental to transport, storage and warehousing and air transport are increasing in urban areas. It should be noted that there is a slight tendency of increasing employment in subsidiary status in services incidental to transport for both males and females.

18

We have presented only two sectors as the contribution of the other sectors are minimal.

26

Table 18: Sectoral Share of Employment in Transport (%)

Male Principal 38th 43rd Rural Land Transport -- 87.93 90.48 Communication services -7.47 4.76 Urban Land Transport -- 86.77 88.78 Communication services -5.97 6.12 nd All 32 38th 43rd Rural Land Transport 84.97 88.17 90.00 Communication services 8.66 7.69 5.00 Urban Land Transport 83.59 86.77 88.66 Communication services 7.58 5.96 5.96
Source: NSSO (1981, 1988, 1994, 1996 and 2000)

Female 50th 55th 32nd 90.91 87.50 4.55 6.25 ---

38th

43rd

50th 55th --100.00 --

83.33 100.00 --69.41 20.59 38th

86.73 85.58 -6.12 8.65 -50th 55th 32nd

66.67 60.00 40.0 25.00 26.67 40.0 rd th 43 50 55th ----44.44 38.89

90.91 87.50 87.39 100.00 100.00 4.55 6.25 8.11 --86.60 84.62 65.11 6.19 8.65 25.53 71.62 20.95

66.67 53.85 20.94 23.08

Three-digit level With respect to land transport, Census data reveal that in the case of main workers, railway transport and transport by man (including rickshaw pullers, hand-cart pullers, porters, coolies etc.) provides the highest employment and for marginal workers the largest employment provider is transport by man. The recent NSS survey indicates that within post and telecommunications the largest employment provider is telecommunications especially in urban areas. Activities like radio and television broadcasting including cable operation, telecom services and internet cafes etc., account for the major share within telecommunications. The structural shift in the case of subsidiary workers is more pronounced in the case of supporting transport activities.

Trend in Growth Growth rates calculated from the Census data show that, within the transport sector, land transport records, around 3% annual growth rate except for females in rural areas, which records a negative growth rate. The sub sector that is becoming dynamic within transport sector is services incidental to transport, storage and warehousing and communication services. While figures indicate that employment in storage and communication is basically a rural phenomenon and communication service provide more employment opportunities for females in urban areas. In the case of marginal

27

workers a similar trend and pattern are observed. However the growth rate of marginal workers in land and water transport was negative (see Appendix Table 4A). Table 19: Growth Rate of Employment in Transport, 1981-1991 (Main Workers, %)
Sectors
Total Rural Total Urban Total Male Rural Male Urban Male Female Rural Female Urban Female

2.91 Land transport -0.98 Water transport 3.79 Air transport Services incidental to 10.42 transport Storage & warehousing 3.64 service Communication 1.37 services Source: Census 1981 and 1991

3.93 -2.42 5.62 14.80 6.34 1.11

2.42 -0.59 3.50 9.25 2.63 1.55

2.96 -1.11 3.48 10.41 3.60 1.15

4.04 -2.49 5.93 14.56 6.27 0.98

2.44 -0.73 3.08 9.27 2.57 1.28

0.44 4.16 7.04 10.63 4.32 4.19

-2.24 3.32 1.04 21.95 8.09 5.13

1.62 4.26 7.73 8.93 3.47 3.98

Table 20: Growth Rate of Employment in Transport (Principal, %) Rural Male Rural Female
1983-87 1987-94 1994-00 1983-87 1987-94 1994-00

Sector Land Transport Communication services

5.77 4.02 7.80 -3.89 2.96 15.77 Urban Male

1983-87 1987-94

16.42 -----Urban Female

1994-00 1983-87 1987-94 1994-00 3.92 4.40

Land Transport Communication services

2.55 2.60

3.92 4.40

-5.11 -0.55

6.96 10.65

0.15 17.79

Source: NSSO (1981, 1988, 1994, 1996 and 2000)

Table 21: Growth Rate of Employment in Transport (All, %) Rural Male Rural Female
Sector 19778-83 1983-87 1987-94 1994-00 19778-83 1983-87 1987-94 1994-00 9.56 5.32 4.86 5.41 3.11 15.51 --6.20 -3.77 2.67 0.39 ----Urban Male Urban Female 19778-83 1983-87 1987-94 1994-00 19778-83 1983-87 1987-94 1994-00 Land Transport 8.17 2.54 3.82 18.27 -8.04 7.62 6.56 3.74 Communication services 2.33 -17.43 29.94 11.54 -17.82 29.99 -18.92 0.37 Source: NSSO (1988, 1994, 1996 and 2000)

Land Transport Communication services

NSS rounds show that in the transport sector, employment growth is relatively low for rural workers. During the period 1987-93/94, communication services show sharp increase more in the case of subsidiary workers. Comparison with Census and NSS data sources show that the growth and diversification of employment within the transport sector is a phenomenon after 1987. However the recent NSS data show that, employment

28

in transport sector is growing for urban males and females, the latter category recording a higher growth rate. (c) Finance Sectoral Pattern The following table shows the employment in the finance sector as percentage of total service workers. The finance sector registered an increase in employment during the entire period for both males and females. While for main workers the major employment provider is banking, in the case of marginal workers, real estate and other business contributes the highest sectoral share in employment (see Appendix Table 5A). Table 22: Sectoral Share of Employment in Finance (Main, %)
Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Persons Banking 2.32 2.54 2.68 1.40 2.78 5.09 2.91 3.17 3.37 Provident Funds etc 0.31 0.44 0.61 0.09 0.23 0.54 0.45 0.57 0.72 Real estate & Other business 1.21 1.46 1.70 0.55 0.71 0.85 1.63 1.94 2.25 Legal services 0.59 0.50 0.41 0.31 0.29 0.24 0.76 0.64 0.52 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Males Banking 2.40 2.59 2.69 1.51 2.98 5.40 2.97 3.20 3.35 Provident Funds etc 0.31 0.44 0.59 0.10 0.24 0.56 0.45 0.56 0.69 Real estate & Other business 1.30 1.57 1.82 0.60 0.77 0.91 1.74 2.09 2.43 Legal services 0.64 0.54 0.44 0.35 0.32 0.27 0.82 0.69 0.56 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Females Banking 1.63 2.16 2.51 0.48 1.23 2.31 2.40 2.99 3.53 Provident Funds etc 0.28 0.46 0.66 0.04 0.13 0.31 0.44 0.66 0.95 Real estate & Other business 0.43 0.62 0.78 0.10 0.24 0.43 0.66 0.85 1.05 Legal services 0.14 0.18 0.21 0.04 0.06 0.08 0.21 0.26 0.30 Source: Census of India, 1981, 1991 and 2001

The NSS data shows that a high percentage of urban females are employed as subsidiary status workers in financial sector. Over the years under consideration, a shift has occurred in the employment within finance sector as revealed by both data sources. The employment share of banking and provident funds is decreasing and that of other two sub sectors increasing. Probable reasons may be the computerisation of transaction and larger play of private sector in baking and insurance.

29

Table 23: Sectoral Share of Employment in Finance (Principal, %)

Male Female 38th 43rd 50th 55th 38th Banking 53.33 50.00 50.00 40.00 100.00 ---Provident Funds etc 3.33 -Real estate & Other business 36.67 25.00 -- 40.00 -Legal services 6.67 0.00 -- 20.00 -Urban Sectors Rural 43rd 50th 55th --- 100.00
----

---

---

---

38th 43rd 50th 55th 38th 43rd 50th 55th Banking 47.95 45.71 50.00 40.00 57.14 64.29 59.09 46.43 7.14 Provident Funds etc 6.62 5.71 7.89 4.44 18.37 14.29 13.64 34.07 37.14 28.95 46.67 16.33 21.43 22.73 32.14 Real estate & Other business 7.14 Legal services 11.67 11.43 10.53 8.89 7.14 0.00 9.09
Source: NSSO (1988, 1994, 1996 and 2000)

Table 24: Sectoral Share of Employment in Finance (All, %)

Sectors Rural
Banking Provident Funds etc Real estate & Other business Legal services

32

nd

38

th

Male 43rd

50

th

55 32

th

nd

Female 38 43rd 50th 55th

th

49.96 4.12 38.03 7.88

55.17 50.00 3.45 -37.93 25.00 6.90 0.00

50.00 40.00 28.00 50.00 -----40.00 22.00 -0.00 20.00 50.00 --

-----

-----

----48.00 8.00 36.00 8.00

Urban

32nd

38th 43rd

50th

55th 32nd

38th 43rd 50th 55th

Banking 49.85 47.45 45.71 Provident Funds etc 8.07 6.37 5.71 Real estate & Other business 29.29 34.39 37.14 Legal services 12.78 11.46 11.43 Source: NSSO (1981, 1988, 1994, 1996 and 2000)

50.00 40.00 74.45 56.79 66.67 52.63 7.89 4.44 11.76 18.52 8.33 15.79 28.95 46.67 10.29 17.28 16.67 21.05 10.53 8.89 3.49 7.41 -5.26

Three-digit level Evidence from the Census data at three-digit level, indicate that deposit activities followed by other credit services, which include operation of money lenders, financiers and chit funds etc are the major employment provider. Within the provident funds and insurance, life insurance makes the highest contribution in employment. Purchase and sale, agents and brokers contribute highest share in real estate and business services. In the 55th round of NSS, categories like software consultancy and data processing shows an increasing trend. Trends in Growth Evidence from the Census data indicates that the growth rate for all sub sectors of finance was higher in rural areas. Employment growth for marginal workers is negative in most categories except for other financial activities (see Appendix Table 6A).

30

Table 25: Growth Rate of Employment in Finance, 1981-1991 (Main Workers, %) Sectors
Rural Total Total Urban Total Male Rural Male Urban Male Female Rural Female Urban Female

Banking 4.74 Provident Funds etc 7.57 Real estate & Other business 5.77 Legal services 2.18 Source: Census 1981 and 1991

11.51 14.28 6.89 3.21

4.59 6.35 5.52 1.89

4.45 7.26 5.64 1.99

11.38 14.10 6.69 3.09

4.28 5.92 5.40 1.68

7.74 10.13 8.58 7.64

14.51 17.64 13.99 9.77

7.45 9.53 7.89 7.36

NSS data results are presented only for urban workers, as in the rural areas the employment reported many sectors are very less. The NSS data show that the fastest growing sectors were other financial activities and provident fund and insurance, except for females for 1994-00. Employment for subsidiary status workers shows an increasing tendency, except in the case of banking and provident fund and insurance. Table 26: Growth Rate of Employment in Finance (Principal, %)
Urban Male
1983-87 1987-94

Urban Female

1994-00 1983-87 1987-94 1994-00 12.77 4.75 16.31 -12.44 13.29 15.70 2.54 -5.45 15.33 2.54

Sector
8.05 Banking 3.66 8.05 13.22 Provident Funds etc 1.60 13.22 0.97 Real estate & Other business 6.47 0.97 4.40 Legal services 4.21 4.40 Source: NSSO (1981, 1988, 1994, 1996 and 2000)

Table 27: Growth Rate of Employment in Finance (All, %)

Urban Male Urban Female 19778-83 1983-87 1987-94 1994-00 19778-83 1983-87 1987-94 1994-00 7.61 3.99 7.96 1.61 6.64 15.11 9.11 4.76 Banking 3.64 2.52 13.12 -5.28 23.26 -4.98 29.99 -6.86 Provident Funds etc 12.22 6.39 0.88 16.90 24.86 10.67 19.87 18.79 Real estate & Other business 6.34 4.70 4.31 2.72 30.84 --16.02 Legal services Source: NSSO (1988, 1994, 1996 and 2000)

Sectors

(d) Residual Services Sectoral pattern Residual services consist of a heterogeneous group of activities and contributes major share in the service sector employment, though its share is decreasing over the years. The largest contribution to employment in the residual services is made by public administration and defence services, education, scientific and research services, personal services, and unclassified services. Certain services like sanitary services, recreational

31

services and employment in international and other extra territorial bodies, have not taken for further analysis due to their minimal sectoral contribution to employment.

100% 80%

Figure 12: Sectoral Share of Employment in Residual Services (Main Workers)

Share

60% 40% 20% 0% T1981 T1991 T2001 R1981 R1991 R2001 U1981 U1991 U2001 Sector

Source: Figures 10 & 11, Census of India, 1981, 1991 and 2001 Codes: (A)-public administration and defence services, (B) education, scientific and research services, (C)health and medical service, (D)-community services, (E)-personal services, (F)-services not elsewhere classified.

Education, scientific and research services, health and medical service, community services, services not elsewhere classified shows a declining trend in sectoral share after 1991. In the case of public administration and defence services the decline in sectoral share is visible for urban areas. Personal services show a sharp increase in both rural and urban areas after 1991.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Figure 13: Sectoral Share of Male Employment in Residual Services (Main Workers)

Share

T1981

T1991

T2001

R1981

R1991

R2001

U1981

U1991

U2001 Sector

32

100% 80% 60%

Figure: 14: Sectoral Share of Female Employment in Residual Services(Main Workers)

Share

40% 20% 0%

F1 98 1 F1 99 1 F2 00 1

R1 98 1 R1 99 1

R2 00 1

U 19 81 U 19 91

Source: Figures 13 & 14, Census of India, 1981, 1991 and 2001 Codes: (A)-public administration and defence services, (B) education, scientific and research services, (C)health and medical service, (D)-community services, (E)-personal services, (F)-services not elsewhere classified.

Within services, residual service is the only sub sector, where female are employed more than males. In contrast with public administration and defence where males are in majority, female employment is more in education and personal service. In community services, employment of rural female shows an increasing trend after 1991. In contrast with the employment pattern of main workers, marginal workers are primarily employed in personal services and services not else where classified and a lesser percentage by personal services (see Appendix Table 7A)

U 20 01
Sector

33

The NSS data reveals that while in the case of male workers the largest employment provider within residual services is public administration, while in the case of females it is personal and other services. Between 43rd and 50th NSS round personal service shows an increase, while between 50th and 55th round its contribution have decreased. The recent NSS round indicates that there has been an increase in employment in educational services, for males and females in both areas. Table 28: Sectoral Share of Employment in Residual Service (Principal, %)
Rural males Rural females 38th 43rd 50th 55th 38th 43rd 50th 55th 30.17 35.00 26.87 29.82 6.53 1.11 10.26 11.90 Public Administration 23.39 15.00 20.90 26.32 2.08 2.50 25.64 30.95 Education 5.59 5.00 4.48 5.26 4.45 5.56 5.13 4.76 Health and Medical services Personal services and others 26.44 23.33 29.85 31.58 60.83 52.78 53.85 42.86 Urban males Urban females 38th 43rd 50th 55th 38th 43rd 50th 55th 46.00 47.71 40.71 48.17 14.91 19.25 18.31 13.18 Public Administration 13.00 11.47 11.95 17.68 26.63 28.26 28.42 34.96 Education 6.89 5.50 5.31 8.54 10.38 9.63 8.20 11.17 Health and Medical services Personal services and others 13.79 14.68 20.80 17.07 42.04 36.65 40.16 36.96 Source: NSSO (1988, 1994, 1996 and 2000)

Table 29: Sectoral Share of Employment in Residual Service (All, %)

Rural males
32 38 43 50 26.80 29.88 34.48 25.76 Public Administration 23.11 23.32 20.69 19.70 Education 5.12 5.53 5.17 4.55 Health & Medical services Personal services & others 29.47 26.60 24.14 30.30
nd th rd th

Rural females
55 29.82 26.32 5.26 29.82 55 47.88 18.18 8.48 16.97
th th

32nd 38th 43rd 50th 55th 2.98 6.09 10.00 9.09 11.11 15.36 19.35 23.33 24.24 30.56 5.10 4.66 6.67 6.06 5.56 67.66 62.37 46.67 57.58 44.44

Urban males
32 38 43 50 43.76 45.45 47.00 40.27 Public Administration 13.20 13.35 11.52 11.95 Education 5.88 6.86 5.53 5.31 Health & Medical services Personal services & others 15.65 14.05 15.21 20.80 Source: NSSO (1981, 1988, 1994, 1996 and 2000)
nd th rd th

Urban females
32nd 38th 43rd 50th 55th 11.01 14.18 18.42 16.31 12.30 24.24 26.58 27.44 25.98 35.65 8.12 10.23 9.40 7.25 10.73 50.23 42.89 38.35 45.32 37.54

Three- digit level In the case of personal services a large segment of workers are employed as domestic workers in laundry service and cleaning and dyeing plants, hairdressing and beauty salons and services not elsewhere classified, as revealed by both Census and NSS

34

data. This indicates that more people are moving into this sector, probably due to unemployment as it offers easy entry. Trends in Growth The Census data reveal that in the case of residual services the highest growth rates are recorded by personal services. Public administration and health that have a large government share shows declining trend. The marginal workers show a high growth rate in the case of personal services and services n.e.c especially in the case of urban females (see Appendix Table 8A)
Table 30: Growth Rate of Employment in Residual Services, 1981-91 (Main Workers,%) Total Total R Total U Male Male R Male U Female Female R Female U Public administration 4.51 6.17 3.39 4.34 6.07 3.13 7.19 9.47 6.57 Education services 3.69 3.42 4.01 2.96 2.82 3.19 5.56 6.10 5.26 Health services 3.42 3.04 3.69 2.85 2.48 3.15 4.91 5.00 4.86 Personal services 7.43 6.67 8.11 8.17 7.41 8.91 5.22 4.11 6.02 Services n.e.c 2.20 1.84 2.41 2.28 2.20 2.33 1.64 -0.17 2.99
Source: Census 1981&1991

Evidences from the NSS rounds also indicate that the employment in the personal services and other unclassified services have registered a sharp decrease especially during the last one decade. In the case of urban areas, employment in education and health services shows an increase especially for usual status workers. This indicates that employment created in these sectors is more or less of irregular nature. Table 31: Growth Rate of Employment in Residual Services (Principal, %)
Rural male Rural female 1983-87 1987-94 1994-00 1983-87 1987-94 1994-00
Public Administration Education Health & Medical services Personal services & others 4.69 -7.01 -0.62 -1.55 -0.16 12.47 2.96 14.62 -0.36 2.18 0.78 -1.32 -27.93 6.57 7.35 -0.18 60.18 63.60 1.07 3.11 5.77 6.60 1.15 -1.92

Urban male Urban female 1983-87 1987-94 1994-00 1983-87 1987-94 1994-00
3.53 1.87 Public Administration 0.23 6.02 Education -1.75 4.40 Health and Medical services Personal services & others 4.07 12.75 Source: NSSO (1988, 1994, 1996 and 2000) -0.25 4.32 6.06 -7.28 9.16 4.95 2.17 0.91 6.10 7.29 3.78 9.16 -4.89 5.87 8.06 -0.11

35

Table 32: Growth Rate of Employment in Residual Services (All, %)

Rural male
Public Administration Education Health & Medical services Personal services & others

Rural female

1978/83 1983/87 1987/94 1994/00 1978/83 1983/87 1987/94 1994/00 7.02 4.40 -0.61 0.57 18.11 12.66 2.32 5.45 4.90 -0.95 4.33 3.49 7.18 5.91 5.09 6.10 6.35 0.11 2.67 0.57 0.50 9.61 2.32 -0.45 9.33 -0.22 14.01 -2.64 0.68 -3.72 8.76 -3.81

Urban male

Urban female

1978/83 1983/87 1987/94 1994/00 1978/83 1983/87 1987/94 1994/00 8.09 3.47 1.95 -0.15 12.63 9.24 6.40 -5.36 Public Administration 7.51 -0.20 5.93 4.91 9.06 4.34 7.83 6.67 Education 10.64 -1.56 4.31 5.93 12.12 1.93 3.50 8.29 Health & Medical services Personal services & others 4.98 4.42 11.95 -7.39 3.74 1.37 12.72 -3.56 Source: NSSO (1981, 1988, 1994, 1996 and 2000)

Section V Conclusion In the present paper we have attempted to capture changing structure of the service sector employment in India, over the past three decades. Though at the macro level not much change has occurred there are many changes concealed at the employment at sub sector level. At the one digit level within the service sector a structural change occurred especially with respect to male employment-a shift from residual services to trade and hotels. Within trade and hotels there is a slow shift of trade from food articles to non-food articles. Finance and transport are the other two sectors that improved their position. Though the sectoral share of finance and transport sector is comparatively less, employment opportunities for skilled labour are increasing in sub sectors like, communication and software consultancy. In the finance sector there is a decrease in the aggregate employment opportunities, due to computerisation and increased role of private banks in financial transactions. In the case of females, though no such changes are evident, share of sectors other than residual services have been improving its position. From a growth process initiated from excess labour supply and increased government intervention, the services in India are slowly undergoing a structural change. Not only is the employment generation in the service sector remain low; the new opportunities are created for labour with certain skills. This will have serious implication on income inequality. Further, with the increasing role played by the private sector, nature of employment will also change.

36

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APPENDIX Table 1A: Sectoral Share of Employment in Trade &Hotels (Marginal Workers, %)
T1981 T1991 T2001 TR1981 TR1991 TR2001 TU1981 TU1991 TU2001 Total W. trade in agricultural 0.84 0.91 0.84 0.79 0.99 1.02 0.91 0.79 0.59 R. trade in food 25.77 17.58 10.14 29.11 20.71 12.14 20.79 12.70 6.66 R. trade in textiles 1.08 1.34 1.41 0.85 0.97 0.91 1.42 1.93 2.24 R. trade in fuels 3.95 1.95 0.82 3.80 1.97 0.84 4.16 1.92 0.76 R. trade n.e.c 4.28 5.75 6.53 3.64 5.42 6.65 5.22 6.25 6.43 Restaurants & hotels 4.57 3.47 2.23 5.03 3.57 2.09 3.88 3.31 2.42 M1981 M1991 M2001 MR1981 MR1991 MR2001 MU1981 MU1991 MU2001 Males W. trade in agricultural 1.07 1.33 1.55 1.12 1.66 2.30 1.01 0.96 0.92 R. trade in food 20.15 16.14 12.10 23.48 18.72 13.84 16.53 13.28 10.68 R. trade in textiles 1.90 2.21 2.40 1.71 1.71 1.59 2.11 2.76 3.61 R. trade in fuels 2.81 2.03 1.38 2.35 1.62 1.03 3.30 2.49 1.88 R. trade n.e.c 5.53 7.99 10.79 5.04 7.23 9.63 6.07 8.83 12.84 Restaurants & hotels 5.64 5.01 4.16 6.35 5.11 3.81 4.87 4.90 4.92 F1981 F1991 F2001 FR1981 FR1991 FR2001 FU1981 FU1991 FU2001 Females W. trade in agricultural 0.65 0.68 0.53 0.57 0.69 0.63 0.79 0.66 0.41 R. trade in food 30.61 18.39 8.22 32.90 21.60 10.83 26.06 12.25 4.30 R. trade in textiles 0.37 0.86 1.47 0.27 0.63 1.13 0.57 1.28 2.14 R. trade in fuels 4.93 1.91 0.55 4.78 2.13 0.73 5.23 1.48 0.31 R. trade n.e.c 3.19 4.48 4.69 2.71 4.61 5.98 4.16 4.25 3.24 Restaurants & hotels 3.64 2.61 1.39 4.14 2.88 1.53 2.66 2.08 1.21 Source: Census of India, 1981 and 1991

Table 2A: Growth Rate of Employment in Trade & Hotels, 1981-1991 (Marginal Workers,%)
Sectors W. trade in agricultural etc R. trade in food R. trade in textiles R. trade in fuels R. trade n.e.c Restaurants & hotels Source: Same as above T 0.57 -4.01 1.95 -7.04 2.73 -2.96 TR 2.19 -3.43 1.24 -6.43 3.97 -3.43 UT -1.95 -5.32 2.54 -7.93 1.28 -2.11 TM -0.54 -4.85 -1.25 -5.82 0.91 -3.88 RM 1.34 -4.80 -2.60 -6.21 0.96 -4.72 UM -3.32 -4.93 -0.18 -5.53 0.87 -2.79 TF 1.98 -3.55 10.30 -7.69 5.00 -1.85 RF 3.22 -2.83 10.31 -6.50 6.88 -2.25 UF -0.09 -5.63 10.30 -10.28 1.99 -0.70

40

Table 3A: Sectoral Share of Employment in Transport (Marginal Workers,%)

Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Persons Land transport 7.92 5.46 3.18 6.73 4.68 2.68 9.70 6.67 3.94 Water transport 0.28 0.14 0.06 0.23 0.11 0.04 0.35 0.20 0.10 Air transport 0.02 0.05 0.11 0.01 0.02 0.05 0.04 0.10 0.22 Services incidental to transport 0.07 0.20 0.48 0.03 0.16 0.63 0.13 0.27 0.48 Storage and warehousing service 0.06 0.06 0.06 0.04 0.04 0.03 0.08 0.10 0.10 Communication services 0.45 0.28 0.14 0.50 0.25 0.10 0.37 0.32 0.24 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Male Land transport 14.33 12.95 10.94 13.06 12.29 10.73 15.71 13.67 11.90 Water transport 0.57 0.34 0.19 0.54 0.27 0.13 0.60 0.42 0.29 Air transport 0.04 0.11 0.28 0.01 0.03 0.08 0.07 0.19 0.54 Services incidental to transport 0.11 0.32 0.82 0.06 0.22 0.74 0.17 0.43 1.05 Storage and warehousing service 0.10 0.10 0.09 0.08 0.06 0.04 0.11 0.14 0.17 Communication services 0.80 0.51 0.31 1.03 0.53 0.25 0.54 0.49 0.44 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Female Land transport 2.40 1.24 0.48 2.46 1.24 0.48 2.27 1.23 0.49 Water transport 0.03 0.03 0.03 0.02 0.03 0.05 0.05 0.03 0.01 Air transport 0.00 0.02 0.07 0.00 0.01 0.00 0.01 0.04 0.09 Services incidental to transport 0.03 0.14 0.40 0.01 0.13 0.95 0.07 0.15 0.21 Storage and warehousing service 0.03 0.04 0.05 0.02 0.03 0.04 0.05 0.07 0.08 Communication services 0.15 0.15 0.10 0.15 0.12 0.08 0.16 0.19 0.17 Source: Same as above

Table 4A: Growth Rate of Employment in Transport, 1981-1991 (Marginal Workers,%)

Sectors Land transport Water transport Air transport Services incidental to transport Storage and warehousing service Communication services Source: Same as above Total -3.91 -6.63 9.51 10.66 0.34 -5.00 Rural Total -3.64 -7.35 12.39 17.09 -1.24 -6.91 Urban Total -4.19 -5.98 8.89 7.08 1.50 -1.95 Male -3.71 -7.55 7.74 7.74 -2.62 -6.97 Rural Male -3.21 -9.11 6.79 10.81 -5.71 -8.89 Urban Male -4.18 -6.24 7.94 6.38 -0.58 -3.86 Female -5.01 3.13 18.12 16.56 6.29 1.05 Rural Female -5.34 8.33 0.00 27.10 6.61 -0.70 Urban Female -4.32 -2.75 13.58 8.91 6.02 3.75

41

Table 5A: Sectoral Share of Employment in Finance (Marginal Workers,%)

Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Persons Banking 0.47 0.44 0.35 0.36 0.34 0.27 0.63 0.58 0.46 Provident funds etc 0.65 0.30 0.12 0.11 0.22 0.39 1.47 0.42 0.10 Real estate & other business 0.80 1.08 1.24 0.57 0.67 0.64 1.14 1.73 2.25 Legal services 0.15 0.09 0.05 0.09 0.06 0.03 0.23 0.15 0.08 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Males Banking 0.75 0.72 0.65 0.65 0.59 0.50 0.86 0.87 0.87 Provident funds etc 0.21 0.50 1.14 0.16 0.50 1.48 0.26 0.50 0.97 Real estate & other business 1.55 2.31 3.23 1.29 1.64 1.94 1.83 3.05 5.11 Legal services 0.29 0.20 0.13 0.21 0.15 0.09 0.37 0.26 0.18 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 Females Banking 0.22 0.28 0.26 0.16 0.23 0.26 0.33 0.36 0.29 Provident funds etc 1.04 0.19 0.02 0.07 0.10 0.10 2.97 0.36 0.03 Real estate & other business 0.15 0.39 0.75 0.08 0.22 0.49 0.29 0.70 1.26 Legal services 0.03 0.03 0.03 0.01 0.02 0.02 0.06 0.06 0.05 Source: Same as above

Table 6A: Growth Rate of Employment in Finance, 1981-91(Marginal Workers, %)

Sectors Total Banking -0.88 Provident funds etc -7.74 Real estate & other business 2.82 Legal services -4.87 Source: Same as above Rural Total -0.43 7.70 1.52 -4.80 Urban Total -1.27 -12.27 3.70 -4.93 Male -3.11 6.30 1.25 -6.24 Rural Male -3.50 9.22 -0.27 -6.13 Urban Male -2.81 3.85 2.30 -6.32 Female 3.93 -14.57 11.62 2.84 Rural Female 5.20 4.82 12.59 3.30 Urban Female 2.58 -17.66 11.08 2.60

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Table 7A: Sectoral Share of Employment in Residual Services (Marginal Workers, %)

Persons Public administration Education services Health services Personal services Services n.e.c Male Public administration Education services Health services Personal services Services n.e.c Female Education services Health services Personal services Services n.e.c Communication services Source: Same as above Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 2.75 1.88 1.09 2.75 1.76 0.92 2.74 2.08 1.36 3.22 4.25 4.74 3.12 3.61 3.44 3.38 5.25 7.00 1.72 1.32 0.85 1.85 1.29 0.75 1.54 1.35 1.02 17.46 22.22 23.93 16.66 21.28 22.39 18.64 23.70 25.85 12.98 22.93 34.25 12.87 24.14 37.30 13.15 21.04 28.91 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 3.88 3.13 2.37 4.11 3.12 2.20 3.64 3.15 2.72 2.90 3.73 4.49 3.63 3.86 3.81 2.11 3.58 6.10 1.41 1.28 1.08 1.79 1.34 0.93 1.00 1.21 1.45 10.98 12.60 13.52 9.62 12.26 14.50 12.46 12.97 13.51 11.95 13.90 15.13 10.75 13.59 15.95 13.26 14.25 15.31 Total Rural Urban 1981 1991 2001 1981 1991 2001 1981 1991 2001 1.77 1.18 0.58 1.84 1.14 0.54 1.64 1.26 0.72 3.51 4.55 4.39 2.78 3.50 3.36 4.95 6.55 6.46 1.99 1.34 0.67 1.88 1.27 0.65 2.21 1.46 0.72 23.04 27.65 24.71 21.40 25.35 22.91 26.29 32.05 29.16 13.87 28.02 42.14 14.30 28.90 44.58 13.01 26.33 39.80

Table 8A: Growth Rate of Employment in Residual Services, 1981-91 (Marginal Workers, %)
Total -3.96 2.53 -2.92 2.17 5.58 Rural Total -4.48 1.38 -3.58 2.39 6.40 Urban Total -3.24 3.95 -1.84 1.88 4.25 Male -4.78 -0.24 -3.70 -1.38 -1.24 Rural Male -5.26 -2.01 -5.40 -0.23 -0.31 Urban Male -4.23 2.47 -1.01 -2.44 -2.13 Female -2.57 4.16 -2.48 3.36 8.88 Rural Female -3.40 3.70 -2.57 3.07 8.73 Urban Female -0.91 4.66 -2.34 3.81 9.21

Public administration Education services Health services Personal services Services n.e.c Source: Same as above

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