Dynamics of Change In Urban Informal Employment: Insights From Panel Data of Two Indian Cities

Aims and Objectives: This research seeks to analyse the dynamics of informal employment and map the changes in the Indian urban labour market, particulars with respect to the informal sector and inform employment.

Methodology: The study was based on information collected from both secondary and primary sources. The secondary information was largely based on National Sample Surveys organizations (NSSO) quinquennial rounds of employment and unemployment surveys (2004-05 and 2011-12) and enterprise survey of unincorporated non-agriculture enterprise survey excluding construction, 2010-11.

Findings:

• The proportion of those who did not receive any vocational/technical training in the organized and unorganized sector is very high.
• It is of utmost importance that training should not be designed in isolation from other necessary inputs.

Recommendations:

• It is essential to improve the condition of workers and enterprises in informal segment.
• Vocational training is of utmost importance
• Training complemented with accessibility to credit at low interest rates through decentralized system of loan delivery and collection, will make a real difference to income in informal sector.
• There should be linkage between training and skill development with jobs in the industry or other sector because most of the time gap between training and employment is so long that the skill training becomes obsolete.