The unit-level data of the Periodic Labour Force Survey (PLFS), launched by the National Sample Survey Organisation (NSSO) in 2017, reveals concerning trends about India’s job market. As per the PLFS 2017-18, 6.1% of the nation’s labour force is unemployed. This rate goes up to an alarming 17.8% for young people aged 15-29 years. Such statistics suggest that the country’s employment scenario may be more problematic than headline numbers imply.
A Closer Look at the Workforce Composition and Wage Structure
Between 2011-12 and 2017-18, the share of the workforce involved in regular wage/salaried jobs increased by 5 percentage points. However, this uptick was due to the denominator effect, as the total workforce witnessed a 4-percentage point decrease during this period. Consequently, the proportion of regular workers, as part of the population, only rose by 1 percentage point to 8%.
Notably, India lags behind its South Asian counterparts and other developing economies like China, Brazil, and South Africa when it comes to the proportion of salaried jobs. Median daily earnings were higher for both men and women in regular jobs compared to self-employment and casual work. That said, nearly half (45%) of salaried workers earned less than ₹10,000 per month, and merely 4% earned more than ₹50,000 per month in 2017-18.
Across different worker categories, wages were higher in urban areas than rural ones, and higher for men than women. Approximately 15% of regular workers were involved in elementary occupations, with comparatively low median earnings.
| Job Categories | Average Monthly Wage |
|---|---|
| Salaried workers | ₹10,000 to ₹50,000 |
| Self-employed | Lower than salaried workers |
| Workers in rural areas | Lower than urban workers |
| Women workers | Lower than men workers |
Job Security Concerns and Scarcity of Social Security Benefits
Despite the higher pay, job security remains a major concern for regular workers. Around 71% of them in the non-agricultural sector did not have a written job contract in 2017-18, and the number of workers ineligible for paid leave also increased. While there was a 5.8 percentage points decrease in regular workers without access to any social security benefits from 2011-12 to 2017-18, this figure remains high, with half of regular workers not eligible for such benefits in 2017-18.
Government Initiatives for Employment Generation
To mitigate these challenges, the government is focusing on stimulating private sector participation in the economy to boost employment. It is also expediting various projects involving substantial investments and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), and Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM). The Government has also established the Cabinet Committee on Employment & Skill Development to foster progress in this domain.
Last Modified: February 6, 2024