20th January, 2003
Ministry of Labour & Empowerment  


LABOUR BUREAU RELEASES STATISTICS ON CLOSURES, RETRENCHMENTS AND LAY-OFFS IN INDUSTRIES IN INDIA DURING THE YEAR 2000


The statistical data on Closures, Retrenchments and Lay-offs is one of the important labour statistics in use to monitor the industrial health of the economy as it has a bearing on the employment situation in the country. Following is the summary of data pertaining to the year 2000:-

During the year 2000, one hundred and thirty eight Closures were reported on which 2 were in the Central Sphere. As many as 11,904 workers were affected including 333 in the Central Sphere. About 38 percent (52) of the Closures were due to 'Financial Stringency', 24 percent (33) due to 'Lack of Demand for Products', and the remaining were due to 'Indiscipline', 'Breakdown of Machinery', 'Shortage of Raw Material', 'Shortage of Power' and 'Other Causes'. The maximum number of Closures (31) was reported in Uttar Pradesh while the 2 cases of Closure in the Central Sphere were reported from Andhra Pradesh. The largest number of Closures (19) was in 'Industry Group 31 - Manufacture of Electrical Machinery and Apparatus not elsewhere classified'. Similarly, the largest number of workers affected due to Closures (3,204) was in the 'Industry Group 17 - Manufacture of Textiles'. Private sector accounted for not only the maximum number of Closures (135) but also the maximum number of workers affected (11,493) therein. The highest number of Closures (22) occurred in the month of March while the largest number of workers affected (2,752) was in the month of April.

In all, 109 Retrenchments affecting 2,963 workers were reported during 2000 of which 11 Retrenchments affecting 600 workers were in the Central Sphere. As many as 52 percent of the Retrenchments was due to 'Lack of Demand for Products' and the remaining Retrenchments were caused by 'Financial Stringency', 'Shortage of Raw Material', 'Shortage of Power' and 'Others'. The maximum number of Retrenchments (70) occured in Gujarat. About 44 percent of the Retrenchments occurred in 'Industry Group 36 - Manufacture of Furniture; Manufacturing not elsewhere classified'. Out of 11 Retrenchments in the Central Sphere, as many as 9 occurred in Rajasthan and 2 in Gujarat. Affecting 598 and 2 workers respectively. The Private Sector accopunted for 94 percent of the Retrenchments while the remaining were in the Public Sector and Co-operative Sector. The maximum number of units (20) as well as the maximum number of workers affected (1,330) were reported in the month of June, 2000.

During the period under review, 209 cases of Lay-offs were reported affecting 37,072 workers resulting in a loss of 2,249,646 man-days. The share of Central Sphere in these Lay-offs was about 14 percent affecting 14,990 workers and a loss of 119,229 man-days. The most prominent cause (60 Lay-offs) was 'Shortage of Power'. The maximum number of Lay-offs (57) occurred in 'Industry Group 17 - Manufacture of Textiles' in which 12,052 workers were laid-off resulting in a loss of 1,308,018 man-days. Out of 209 cases of Lay-offs, about 70 percent occurred in Private Sector; 27 percent in Public Sector and the remaining in Co-operative Sector. August was the most turbulent month with 69 Lay-offs resulting in the loss of 158,157 man-days while the highest number of man-days lost (230,787) was reported during the month of November, 2000.