In just 3 months, 5 lakh workers axed

NEW DELHI: In the first confirmation of the brutal fallout that the global slowdown will have on vulnerable sections, five lakh workers lost their jobs in just three months ��� from October to December 2008. This has been brought out by a sample survey conducted by the labour ministry and the actual extent of the problem, going by the estimates of the Federation of Indian Export Organisations (FIEO), could be much more.
Labour secretary Sudha Pillai on Thursday said the affected workers belonged to 20 sectors in 11 states and UTs.These sectors included textiles, metals, gems and jewellery, automobile, transport and IT/BPO, she added. ���These sectors contribute more than 65% of the country���s GDP,��� the labour secretary said, adding that the ministry was urging state governments and employers to ensure social security protection to jobless workers.
The bleak estimate confirms the fear that while, unlike in China���s case, exports have not been the loco of India���s growth story, its integration with the world economy is deep enough for it to remain unscathed.
FIEO���s estimate about the loss of 1 crore jobs has not been confirmed by officials, with many suspecting an inflation of figures to back up a case for export subsidy. But the situation is deemed serious enough to force the government to take some measures.
Pillai said the labour ministry was prepared to extend work-time by amending the Factory Act to protect employment of workers in the garment industry as the sector was losing export orders. She, however, made it clear that the extension was only for overtime work and it would be allowed after provisions were made for workers��� safety and health.
Total employment in the sectors covered by the survey declined from 16.2 million in September 2008 to 15.7 million in December 2008. Exporting units showed a higher decline in employment of which the decrease was highest in gems and jewellery (8.43%), followed by metals (2.6%), textiles (1.29%), automobile (1.26% and mining (0.32%). Pillai, who reviewed the situation in Gujarat���s diamond industry, where a large number of workers have been laid off, said most were working in small units with only 3-4 workers.