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A significant change in inequality in income and wealth is possible only in a longer term perspective. Employment structure of an economy is the normal instrument that can cause a change in inequality either way, i.e. an increase or a decrease in the inequality. Other economic instruments such as target group policies and programmes have a short term impact, but the redistribution through employment is sustainable. Since the governments function within the administrative and fiscal constraints, the target group programmes normally have a marginal impact on income redistribution.
Income of labour enables flow of resources across income classes of people and across the social and ethnic groups. Flows of income across locations are influenced both by assets available and by other modes of creating employment opportunities. However, income generated by employment of migrant labour, facilitates flow of resources across regions for a given regional distribution of capital assets.
 Employment and equity of income across classes of people and across regions are, therefore, closely related to each other in the long term. Current Employment and Unemployment Situation As noted earlier any vision of the future has to be rooted in the current reality and policies and processes have to be identified to bridge the gap between the current reality and the future vision. It is , therefore, essential to have an understanding of the broad employment picture as it exists today, which would also indicate the directions for improvement in future.
Some aspects of the current employment scenario are listed below – 7.32 % of the labour force, in the year 1999-2000, was unemployed. In absolute terms the number of unemployed stood at 26.58 million. Since the above estimates are on Current Daily Status basis, the number of unemployed also includes the number of those who are underemployed in terms of underutilization of the labour time. But it excludes such underemployed who are working at very low levels of income and productivity.
Among the employed, the proportion of poor is as high as in the population at large, suggesting a large proportion of workers engaged in subsistence employment. Only about 8 % of the total employment is in organized sector. More than 90 % are engaged in informal sector activities, which is, largely outside the reach of any social security benefits and also suffers from many 2 handicaps in form of limited access to institutional facilities and other support facilities. The educational and skill profile of the existing workforce is very poor.


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