Employment Landscape in India: Insights from a Recent Report         

Introduction:

• The India Employment Report 2024, jointly released by the Institute for Human Development and International Labour Organization, sheds light on the evolving employment scenario in India. This report, unveiled on Tuesday, March 26, offers crucial insights into the employment dynamics, particularly focusing on youths and women, while highlighting concerns and suggesting cautious measures for the future.

Key Findings:

• The report reveals a paradoxical trend in labor market indicators, showcasing improvements amidst economic distress, both preceding and during the Covid-19 pandemic. Notably, indicators such as the labor force participation rate, workforce participation rate, and unemployment rate have shown positive shifts in recent years, after a prolonged period of deterioration from 2000-2019.

Employment Quality:

• While there has been an overall improvement in the employment condition index between 2004-05 and 2021-22, certain states like Bihar, Odisha, Jharkhand, and UP have lagged behind consistently. The index, based on various labor market outcome indicators, underscores the prevalence of informal employment, which has increased significantly. Self-employment and unpaid family work, particularly among women, have witnessed a surge, contributing to concerns about job quality.

Participation of Women:

• The report highlights the persistently low female labor force participation rate (LFPR) in India, which remains among the lowest globally. Despite a recent uptick, the gender gap in LFPR remains considerable, with women’s participation significantly lower than men’s. Structural barriers contribute to this disparity, with India’s LFPR falling below the world average but surpassing the South Asian average.

Structural Transformation and Youth Employment:

• The transition towards non-farm employment, which had been gradually occurring, saw a reversal after 2018-19, with agriculture reclaiming a larger share of total employment. This shift, coupled with a rise in youth employment, raises concerns about job quality, especially for educated young workers. Unemployment rates among youths, particularly those with secondary-level or higher education, have intensified over time, underscoring the need for targeted interventions.

Policy Recommendations:

• The report outlines five key policy areas for further action, including promoting job creation, enhancing employment quality, addressing labor market inequalities, strengthening skills development, and bridging knowledge gaps. Additionally, it emphasizes the potential impact of artificial intelligence on employment and calls for investment and regulations to support emerging sectors like digital economies.

Conclusion:

• The India Employment Report 2024 offers valuable insights into the complex dynamics of the country’s labor market, highlighting both progress and persistent challenges. By addressing the concerns raised and implementing the recommended policy measures, India can strive towards fostering a more inclusive and robust employment ecosystem, ensuring sustainable growth and opportunities for all segments of society.