The Potential of combining Aadhaar and Periodic Labour Survey
Since about
45 years, the Ministry of Statistics and Programme
Implementation under the Government of India has been conducting quinquennial
Employment
and Unemployment Surveys. These surveys are the primary data input to the
government on labour force-related attributes, which in turn can guide the
government in its employment-related decision-making.
India is the
largest democracy and the second most populated country in the world. It also
has the largest population of young citizens. The government of any democracy is
duty-bound to enable realisation of the aspirations of its population. And the
pressure on the government is considerable when a huge percentage of the
population is under 25 years of age. By having access to sample-based employment
and unemployment data no more frequently than once every five years, a
government in inherently heavily disadvantaged in assuming its role as an effective
generator of employment.
Given this
scenario, and the frequency with which employment and unemployment related data
is available, it is heartening to note that the present government is replacing
the 45 year old quinquennial survey with a more-suitable-for-the-times Periodic
Labour Force Survey. This survey will provide labour and employment data refreshes
every quarter for urban India and annually for rural India. A quarterly refresh
of labour and employment statistics will help observe key employment and labour
force related trends at an unprecedented pace. Another very relevant dimension
of this survey will be the inclusion of both formal and informal employment
sectors.
The potential of Aadhaar
Aadhaar, the
unique identifier for Indian residents, has the potential to be the most significant
data unit in the government’s hands. A significant decision of the National
Democratic Alliance is the mandatory linking of Aadhaar with Permanent Account
Numbers (PAN). It is also to be linked with bank accounts. The government has
also indicated that it may make Aadhaar mandatory for booking railway and air tickets,
and for even boarding a commercial flight. Increasingly, government-provided
benefits are being provided based on Aadhaar. The government is extending
itself to make Aadhaar prevail over the entire population, and rightly so. A nation
with limited resources and with a population the size of India cannot afford to
channel its resources inefficiently. Aadhaar can control inefficiency and
exploitation in provision of any
subsidy the government provides. But Aadhaar’s potential extends far beyond
clean and efficient provision of subsidies and other state-funded benefits such
as midday means in schools.
Marrying Aadhaar data with Periodic Labour Survey Data
Over 90% of
India’s population is believed to have the Aadhaar-based unique identity
already. If Aadhaar databases could include individual attributes such as qualification-based
skills, especially for India’s young and fairly young adults, it will provide
the government a young population-wide profile of prevailing skill levels by
domain. If skill-based Aadhaar data is married with the new labour and employment
survey data, the combined dataset will give the government insights into:
- Rate of absorption of labour force by industry
- Labour unemployment status by skill
The government
already is aware of which industry requires which skills, and will have a
vision for which industries it would like to grow in India.
With these
inputs, the government may be able to drive the unemployed workforce towards
industries hungry for their specific skills, and predict increase in employment
and reduction in unemployment.
The government
will also be in a position to suitably enable investment in education in skills
where there is a shortage and the related industries are expected to grow. Where
insufficient skills exist among workforce, the government can enable investment
in education to complement existing skills to improve their employability.
Where skilled
workforce is available and the relevant industries are still small in India
(such as clean energy-related ones), the government can incentivise their growth
for absorbing already skilled labour.
A quarterly
refresh of employment and labour force data will aid the government in any
course-correction and fine-tuning of its strategies towards education and
employment generation.
NDA’s faith in technology
Undoubtedly technology
leads to job losses, and widespread adoption of technology – which is
inevitable in the coming decades with artificial intelligence and Internet of
Things – will lead to greater job losses. However, targeted and sustained investment
in technology can reduce not just general hardships faced by most Indians but
also the more serious social problems India could face if its population of young
unemployed people is allowed to bloat.
Realisation
of temples of modern
India notwithstanding, successive Indian governments have greatly
under-invested in technologies that can improve the lives of ordinary Indians. It’s
heartening to note the present
government’s faith in science and technology in solving the country’s
bigger problems. Over time the layer of technology infrastructure across India’s
length and breadth must grow thicker and sturdier with one of the prime
objectives of this investment being to address India’s bigger problems, and
thus making living in India less hard for future generations. This is possible
with Aadhaar as the backbone of this infrastructure.
Aadhaar may
well be the brahmaastra the
government can use to attack illiteracy and unemployment, besides social evils like
corruption or disproportionate distribution of resources. It’s a relief to note
that the Supreme
Court recently turned down the submission made by a bunch of activists
giving crazy arguments against Aadhaar. However, it would help a great deal to
have an Opposition with interests aligned with those of the country as against
those aligned compulsively against the government at the centre.
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