OCCUPATIONAL STRUCTURE J.Krishnamurty 1881-1911 Trends in Occupational Structure 1. AGRICULTUREs share hardly changed.

. The category includes cultivators, agricultural laborers, general labor, workforce in plantations, forestry, fishing etc. The share of workforce in this category increased marginally from 72.4% to 74.5%. 2. MANUFACTURINGs share fell from 15.5% to 14.6% of the workforce. 3. SERVICES experienced a decline in the category other services from 9.8% to 7.7%.

??Corresponding changes in output?? Real output did not decline in absolute/relative terms. Between the years 1868-73 and 1908-13, Real NDP increased by 53% while the population increased by 18% only.

20th Century Virtual stagnancy of real output per head, a relative shift away from agriculture to industry and services sectors. (Increase of 12% in real NDP per head attributed to services only) But between 1901-1951, the structure of workforce did not change much. o Slight rise in agriculture o Slight decline in industry and services RELATIVE PRODUCT PER WORKER (RPW) 1901-51 1. RPW in agriculture was below the average output per worker in the economy in 1901. It fell further below the average. (0.89-0.76) 2. RPW in industry was above average, increased farther above average. (1.71-2.13) 3. RPW in services was below average, rose to above average by the end of the period. (0.95-1.38)

International comparison of trends in RPW Indian experience in general confirms to the general pattern internationally. 1. RPW declined in agriculture from an initial value of less than 1 internationally too. 2. The same ratio in industry increased over time in all countries. 3. However, the service sector trend is converse. It rose from a figure below 1 to one above 1 in India but it declined for most other countries. INDEX OF INTER SECTORAL INEQUALITY rose in India from 17.5 to 36.2 (more than doubled!), elsewhere it declined from around 25 or more to about 20 Why? - Lopsided pattern of development in india - Highly unequal income distribution - Rapid growth of urban sector after 1931 without any increase of income per head Changes in employment pattern in different categories Cultivators and agricultural laborers Plantations, forestry, fishing etc Mining and Quarrying Slight rise Sharp decline in 1951 (possibly due to under enumeration) Rose considerably but the sector was always rather small - Concentrated in Bihar and West Bengal, the latter accounting for almost half the employment - Employment in W.B. declined slightly - Employment in Bihar increased by 40% in the period 1901-11 Constant for males Rose slightly, but the share was small Increase in share, part of this increase due to female employment Slight increase in the relative share Slight fall though the numbers in public, educational, medical and legal services increased.

Manufacturing* Construction Trade and commerce Transport, storage, communications Other services

*further details of the sector below

MANUFACTURING INTERNAL COMPOSITION 1901-1951 Factory employment rose from 0.6 to 2.9 million Employment in small scale enterprises declined from 12.6 to 11.4 million The growing share of factory employment in the total, tended to raise average output per worker in manufacturing and hence aggregate manufacturing output.

Hestons estimates Real income by manu sector rose by 98% That of small scale sector by 14%. But this could be an underestimate since the declines in employment within manufacturing were in low productivity activities and some modern small scale units were emerging. Detailed Breakdown Of The Manufacturing Sector (1911-1951) 1. Areas of increase o Beverages o Tobacco Reflects changed tastes, associated with trends towards urbanization after 1931 o Jute textiles and miscellaneous textiles Reflects increase in trend toward stitched clothing Wood and wooden products Absolute but not relative as demand for wood in construction may have grown though losing ground to cement, bricks, steel, the advent of sawmills acted as a damper upon employment growth Paper and paper products Printing and publishing Rubber Petroleum and coal Chemical products Metal products Machinery Electrical equipment Transport equipment

o o o o o o o o o

2. Areas of decrease Foodstuffs

Under foodstuffs, the decline was mainly in the milling, dehusking, processing of grain and in the production of edible oils. Why? Increased mechanization was replacing labor. Less demand for vegetable oils because of kerosene capturing the market. At the same time, employment in sugar, milk, butter, cheese and other food products expanded. Cotton + wool + silk textiles Machine spun yarn replaced hand spun yarn Fly shuttle replaced throw shuttle Number of small scale producers declined from 2.4 million to 2.2 million, output per worker rose coz of increased mechanization. Leather products Tanneries and boot and shoe factories replaced the labor intensive work. Demand for traditional saddles, bags and jars disappeared. Non metallic mineral products (other than petroleum and coal) Massive decline in demand for earthenware because of metal, china and glassware available in the countryside.

General comments Handicrafts there was a decline in employment but not in output. Handloom textiles, bidi and gur production did not see decline in output. Employment in small scale sector declined from 12 million to 11 million, decline in handicrafts was sharper which was concealed by increase in additional employment in powerlooms. The employment figures of manufacturing sector taken together do not imply de industrialisation phase because the decline in share of workforce in this sector was occurring simultaneously with relative and absolute rise in output.

STATE WISE TRENDS

Shift AWAY from agricultur e

No change in the structure of workforc e

Uttar Pradesh Bihar Madhya Pradesh Andhra Pradesh Gujarat

Kerala Maharashtra Madras West Bengal

Rise in agricultu re

Rajasthan Orissa East and west Punjab East Bengal

KERALA Occupational structure Agriculture >60% Allied activities - >6% Manufacturing 15% Strengths Existing system of inland waterways Sea ports, which fostered trade and commerce Shift away from agriculture towards manufacturing and services Employment in plantations increased from 22000 to 1,70,000, more than doubled in manufacturing. Within services, increase occurred in transport, storage, communications and other services Employment in trade and commerce declined relatively.

Within manufacturing, increase in sugar, cashew nut, cotton textiles, coir products, wooden products

 Traditional items made with locally available raw materials Coir and cashew were exportables. Employment in these two industries was majorly consisting of women. Other export items were rubber, tea, lemongrass, oil etc. There was a substantial increase in exports of CASHEW KERNELS from Travancore in 1930s. Important ramifications Expanding export => increased demand for services i.e. transport, storage, communication In 1911, for every person working in educational, scientific, medical and health sevices, there was about half a person in public services. Rapid increase in literacy (26.7% in 1911 to 53.8% in 1951) Sharper decline in mortality (16.1 per 1000 whereas it was 27.4 for the Indian union) RAJASTHAN Shift from manufacturing towards agriculture. How? Collapse of pre modern manufacturing activity because of railways, and expansion of employment opportunities in agriculture. Railways replaced camels in being the main means of transport :P Earlier there existed a pattern of self sufficiency, where most items of daily use were produced by the villagers, this led to a diversified industrial structure. Now the railways made the local manufacturers face national and international consequences. Employment declined in COTTON TEXTILES, LEATHER AND LEATHER PRODUCTS AND EARTHEN POTTERY. At the same time, agriculture was flourishing. Area irrigated was expanding Multiple cropping techniques Land could now support a larger population Production of high value crops like wheat, pulses, oilseeds, cotton which were more labor intensive than dry crops WEST BENGAL Tea and jute major growth factors in late nineteenth century In w.b. in 1911, employment in jute 40% declined to 24% in 1951 The lead within manufacturing also shifted towards IRON AND STEEL. - 1920-37, pig iron production grew by 400% and steel by even greater amount

Entire output from TATAS JAMSHEDPUR PLANT IN BIHAR and COMPANYS PLANT AT ASANSOL, WEST BENGAL. Another plant set up by Steel Corporation of Bengal to meet increase in demand for iron and steel during SECOND WORLD WAR. No linkages with countryside Bengal - Employment quadrupled between 1911-1951, attributable to factories concentrated in Howrah, Hooghly and Twenty Four Parganas Bihar people engaged in mining and quarrying rose from 0.2% to 1.4%

Rural Bengal Sad tale shift from manufacturing towards agriculture growth of jute industry did not alter living standards because of monopsonistic industry structure Growth reinforced the rural urban dichotomy in Bengal. Why? - Dualistic development - Backward linkage effects of jute processing unfavourable, those of steel production spread over Bihar - New industries of asansol etc. heavily dependent on Marwari capital - Employment created was relatively small, though benefited local labor - Positive change concentrated only in urban areas where railways network existed, and commercial and financial institutions existed combined with cheap coal and steel to create modern industrial structure. EAST PUNJAB Marked shift away from manufacturing and services toward agriculture in east Punjab Rapid growth in West Punjab, not in east Punjab as the effects of irrigation developments in the late nineteenth century had tapered off in the region New canal colonies led to new population settlements and crop production in the west. Annual compound rates of growth of agricultural output as high as 4% between 1900 and 1947. But male employment declined in percentage here from 15.6% to 11% Male employment in East Punjab declined from more than 5.5 lakhs to about 3.75 lakhs between 1911 and 1951. Decline on account of foodstuffs, cotton textiles, wooden products, leather products, non metallic mineral products traditional activities unable to stand competition from modern sector Rise in agricultural incomes => increased demand for non-agri goods But this was met by imports from other parts of India