Bihar, a state rich in history and culture, faces significant challenges and opportunities in the domain of labour and employment. With a predominantly agrarian economy and a rapidly growing population, the state is at a critical juncture in its journey toward economic transformation. This article delves into the labour and employment trends in Bihar, highlighting its demographic dividend, challenges, and initiatives undertaken to improve employment opportunities.
1. Demographic Profile of Labour in Bihar
1.1. Population Overview
Bihar is the third most populous state in India with a population exceeding 120 million (Census 2021 estimates).
The working-age population (1559 years) forms approximately 62% of the total population, indicating a substantial potential workforce.
1.2. Literacy and Skill Levels
The literacy rate in Bihar stands at around 70.9% (Census 2011), which is below the national average of 77.7%.
A significant proportion of the workforce lacks formal education and vocational training, affecting employability.
2. Employment Trends in Bihar
2.1. Sectoral Distribution
Agriculture:
Over 70% of Bihars workforce is engaged in agriculture and allied activities.
Subsistence farming dominates, with limited commercialization.
Industry:
The industrial sector contributes only about 14% to the states Gross State Domestic Product (GSDP), employing a relatively small percentage of the workforce.
Services:
The services sector, including transport, trade, and public administration, is gradually growing and accounts for around 44% of Bihar's GSDP.
2.2. Employment Status
The unemployment rate in Bihar was estimated at 10.2% in 2021-22 (Periodic Labour Force Survey, PLFS).
A significant portion of the workforce is underemployed, with many engaged in low-paying, informal jobs.
3. Informal Employment and Migrant Workers
3.1. Informal Employment
Bihars economy is predominantly informal, with over 90% of the workforce employed in the informal sector.
Informal jobs lack social security benefits, regular wages, and legal protections.
3.2. Migration Patterns
Bihar is one of the leading states in out-migration, with millions of workers moving to other states for employment.
Migrant workers are primarily employed in sectors like construction, manufacturing, and domestic work in states such as Maharashtra, Gujarat, and Delhi.
4. Key Challenges in Labour and Employment
4.1. Low Skill Development
Limited access to skill development programs results in a workforce ill-equipped to meet the demands of modern industries.
Vocational training facilities are inadequate and concentrated in urban areas.
4.2. High Dependency on Agriculture
Excessive reliance on agriculture, with low productivity and earnings, restricts economic growth and employment diversification.
4.3. Gender Disparities
Female labour force participation in Bihar is among the lowest in India, estimated at 9.1% (PLFS 2021-22).
4.4. Youth Unemployment
Youth unemployment remains a significant concern, with educated youth struggling to find suitable jobs due to skill mismatches.
4.5. Poor Industrialization
The slow pace of industrial development limits job creation in the manufacturing and organized sectors.
5. Government Initiatives for Employment
5.1. Skill Development Programs
Kushal Yuva Program (KYP):
Launched under the Bihar Skill Development Mission, KYP aims to provide youth with soft skills, IT skills, and communication training.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY):
This national program has been implemented in Bihar to enhance skill training.
5.2. Employment Guarantee Schemes
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
Provides guaranteed 100 days of wage employment in rural areas.
In 2022-23, over 2.5 million households in Bihar benefitted from MGNREGA.
5.3. Industrial and Investment Policies
Bihars Industrial Investment Promotion Policy 2016 aims to attract industries and create jobs.
The development of industrial corridors and clusters is expected to boost employment in manufacturing.
5.4. Labour Welfare Initiatives
Schemes for the unorganized sector, such as social security pensions and insurance, have been introduced.
Efforts are underway to ensure minimum wages for workers in various sectors.
6. Opportunities for Employment Growth
6.1. Agriculture Modernization
Promoting agro-processing industries and modern farming techniques can generate non-farm rural employment.
The government is focusing on improving irrigation and supply chains.
6.2. Industrial Development
Setting up manufacturing hubs and special economic zones (SEZs) can attract investments and create jobs.
Development of sectors like textiles, leather, and food processing is being prioritized.
6.3. Digital Economy
Encouraging IT and digital service companies to invest in Bihar can create white-collar jobs for educated youth.
Initiatives like Digital Bihar are aimed at improving internet penetration and IT infrastructure.
6.4. Tourism and Handicrafts
Bihar's rich cultural heritage and historical sites offer immense potential for tourism-driven employment.
Promoting local handicrafts and artisan products can support rural livelihoods.
6.5. Entrepreneurship Development
Start-up promotion schemes, such as the Bihar Start-Up Policy, are fostering a culture of entrepreneurship among youth.
7. Role of Migration in Bihars Economy
Remittances: Migrant workers contribute significantly to Bihars economy through remittances, which are vital for household consumption and investment in education and health.
Challenges for Migrants: Lack of social security, exploitative work conditions, and limited support systems are major issues for migrants.
8. Recommendations for Enhancing Employment in Bihar
8.1. Investment in Education and Training:
Expanding vocational and technical education infrastructure.
Aligning skill development programs with market needs.
8.2. Industrial Policy Reforms:
Simplifying regulations to attract private investments.
Creating industrial clusters in underdeveloped regions.
8.3. Enhancing Agricultural Productivity:
Encouraging contract farming, cooperatives, and agro-industries.
Promoting sustainable farming practices.
8.4. Strengthening MSMEs:
Providing financial incentives and credit facilities to micro, small, and medium enterprises (MSMEs).
8.5. Promoting Womens Employment:
Implementing gender-sensitive workplace policies.
Offering incentives for women entrepreneurs.