The new report titled “State of Working India 2023” from Azim Premji University’s Centre for Sustainable Employment presents an in-depth analysis of the Indian workforce. The study encapsulates a range of topics such as unemployment rates, women’s participation, intergenerational mobility, and the dynamics of the workforce across different castes. It uses multiple data sources such as the National Statistical Office surveys, including Employment-Unemployment Surveys and Periodic Labour Force Surveys, and the India Working Survey.
Key Findings: Structural Change and Job Creation
The report unveiled a substantial structural change in the employment scenario in India. In contrast to the stagnant phase since the 1980s, there was an increase in regular wage or salaried work post-2004. This rise is significant amongst both men and women, with the percentage increasing from 18% to 25% for men and 10% to 25% for women. Additionally, the creation of regular wage jobs accelerated between 2017 and 2019 with five million jobs generated per year. However, this pace has slowed down due to the current economic slowdown and the Covid-19 pandemic.
Gender Disparities and Earnings
Over the years, gender-based earnings disparities have seen some reduction. In 2004, women salaried workers earned only 70% of that by men, but by 2017, this had increased to 76%. However, the gap has not registered any improvement post-2017 and remains persistent.
Unemployment Rates and Impact of Education
The general unemployment rate observed a decrease, going from 8.7% in 2017-18 to 6.6% in 2021-22. But, the narrative differs when focusing on graduates under the age of 25, where the unemployment rate stood at a shocking 42.3%. In contrast, those with a higher secondary education recorded a lower unemployment rate.
Women’s Workforce Participation in the Post-Pandemic Era
Post the Covid-19 outbreak, we saw an increase in women workforce participation, with 60% of them being self-employed as opposed to 50% before. Nevertheless, this rise in participation did not translate into a surge in earnings from self-employment.
Intergenerational Mobility and Caste Divide
The report also throws light on intergenerational mobility and how it varies across different caste backgrounds. Intergenerational upward mobility is weaker for Scheduled Castes (SC) and Scheduled Tribes (ST) compared to general castes. The percentage of SC/ST men involved in casual wage work has declined, indicative of a shift towards other kinds of employment.
Caste-Wise Workforce Dynamics
There have been significant changes in workforce participation patterns among different castes over the years. The reduction in casual wage work has been substantial amongst SC workers, mirroring a shift in employment types.
Economic Growth Versus Employment Generation
Economic growth has not translated into proportional job creation. The transition from agriculture to other sectors has not necessarily ensured a shift towards salaried employment. Despite the aspiration for salaried work, most salaried jobs are informal and lack contracts or benefits.
Factors Influencing Graduate Unemployment
Graduate unemployment is influenced by a range of factors such as high expectations and wage demands that may not be met by the economy. Additionally, graduates from affluent households often have the luxury to remain unemployed.
Government’s Efforts to Combat Unemployment
The government has taken several initiatives to address unemployment. These include programs like Support for Marginalized Individuals for Livelihood and Enterprise (SMILE), PM-DAKSH, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the Start-Up India Scheme, and Rozgar Mela.