Topic 1 : India’s suboptimal use of its labour power
Context
India is in its period of demographic dividend which is expected to peak in less than 20 years and exhaust in roughly another 30 to 35 years. In this golden period of reaping labour productivity, the economy continues to utilise its labour capital in a suboptimal fashion by engaging a majority in low quality work.
The labour force
- About 90% of the working Indian population earns its livelihood through informal employment that is characterised by little or no job security, no employment benefits, no social protection, and lower earnings.
- The informally employed are primarily concentrated among casual labourers and the self-employed, but exist even in some segments of those who are classified as regular wage or salaried workers.
A deeper reading of improvements
- At first glance it would seem that things have improved in the recent past for which we have yearly data from the Periodic Labour Force Survey (PLFS), beginning 2017-18, which replaced the earlier periodic National Sample Survey (Employment-Unemployment).
- Overall, the Labour Force Participation Rate (LFPR) has gone up steadily to 58.35% in 2021-22, starting at 52.35% in 2017-18, a trend that is being driven largely by women in rural areas.
- This goes against the long-term trend towards decreasing LFPR over several decades since liberalisation.
- Moreover, the overall unemployment rate has also declined from 6.2% in 2017-18 to 4.2% in 2021-22.
- The improvements in LFPR and the drop in the unemployment rate are largely driven by self-employment.
- The self-employed come in three categories — own-account workers, unpaid family workers, and employers who employ outside labour.
- A disturbing trend emerges if we look at them separately to identify which subcategory explains the overall rise in the self-employed.
- The bulk of the growth in self-employment has come from the rise of unpaid family workers, which has increased from 26% to 31.4% over the period.
- Given that the seeming dynamism in the labour market has come from a subcategory of the self-employed — a category which itself is considered to be a main component of informal employment and, therefore, precarious in nature — it is cause for worry.
Phase of demographic dividend
- While this is a matter of concern from the welfare perspective as how is economic growth affecting the job prospects and earnings in the labour market.
- it also has larger macroeconomic growth repercussions. Taken together, own-account workers, casual workers, and unpaid family workers form more than three quarters of the employed. That is to say, more than three quarters of our working population is engaged in work which is typically of low productivity.
Conclusion
Moreover, given that the poorer sections tend to spend a greater fraction of their incomes, their stagnant earnings also do not augur well for the demand-side of the economy coming from consumer expenditure, given that the investment to GDP ratio has been steadily declining — thereby raising the spectre of a vicious cycle.
Topic 2 : Gender equality as the plank of sustainable development
Context
Though women have a key role in energy access, production, and consumption, they face barriers, limiting their participation and impact in the energy sector.
Women and sustainable development
- The critical intersection between gender equality and sustainable energy development is often overlooked.
- The achievement of all Sustainable Development Goals (SDG) is in one way or another dependent on gender equality.
- In fact, strong connections exist among SDG5 on gender equality, SDG7 on clean, affordable energy, and SDG12 on climate action, among many others.
- Gender equality is not just a matter of social justice; it is also a prerequisite for sustainable development.
- Women play a crucial role in energy access, production, and consumption.
- Yet, they often face significant barriers that limit their participation and impact in the energy sector.
- This gender disparity not only hampers individual opportunities but also hinders overall economic growth and environmental sustainability.
Gender equality in energy access
- Research has shown that energy infrastructure tends to reach women last, yet the lack of access to modern energy affects women and children disproportionately.
- For example, lack of access to clean and reliable energy sources, forces women to rely on traditional and harmful alternatives such as biomass and kerosene.
- According to the World Health Organization (WHO), household air pollution leads to a staggering 3.2 million premature deaths each year — nearly half of all air pollution-related deaths — 60% of which are women and children.
- Also energy sector remains one of the least gender-diverse sectors.
- Women represent 32% of full-time employees in the renewable energy sector and only 22% in the energy sector overall; this is in comparison to 48% of women workers in the global labour force.
- In India, for example, only 10% of women hold technical posts in the energy sector, as per the International Energy Agency (IEA).
- This gender disparity is fuelled by disparities in educational access, restricted opportunities for women to acquire technical skills and training, and inequitable company policies, among other contributing factors.
Bridging the gender gap
- Tackling these challenges requires a change in perception towards women’s role in the energy sector and concerted efforts to mainstream gender in energy policies at the sub-national, national and international levels.
- Governments, non-state actors, international institutions and philanthropic organisations have a critical role to play in providing an enabling environment, innovative solutions and transformative platforms to not only increase access to clean energy but also deliver groundbreaking solutions to promote women’s meaningful participation in the sustainable energy transition.
Initiatives
- Initiatives such as the Women at the Forefront programme and the Energy Transitions Innovation Challenge (ENTICE) provide a forum for individuals, especially women, to embark on entrepreneurial ventures and drive collective action for sustainable energy practices.
- An opportunity for Distributed Renewable Energy (DRE), which are already being deployed by various State governments in India to quickly provide affordable energy access and reduce the everyday drudgery of women’s work, thereby increasing their productivity.
- Solar Mamas is one inspirational initiative started in India by Barefoot College to train illiterate women to become solar engineers, bringing clean power and light to their communities.
Conclusion
With the passage of International Women’s Day, it is important to recognise that the dialogue on gender and energy has clearly shifted from women being identified as part of vulnerable groups to acknowledging them as key agents of change, as consumers, producers, distributors and decision makers across the energy sector.