India Employment Report 2024

• Context (IE): The findings of the India Employment Report 2024.
• India Employment Report 2024 is developed by the Institute for Human Development (IHD) and the International Labour Organisation (ILO).

Positive developments in the Labour market

• Employment quality has improved in all states, though at different rates.
• Non-farm employment increased & agriculture employment declined (between 2000 – 2019).
• Regular employment increased & unorganised sector employment declined (except Covid years).
• Female workforce participation rate increased from 24.5% in 2019 to 37.0% in 2023.
  • Most of this increase was in agriculture, and many were in own-account or unpaid family work.
• Wages of casual workers increased from 2019 to 2022, especially for lower-income groups.
• Unemployment declined from 6% in 2018 to 3.2% in 2023.
• Youth unemployment declined from 17.8% to 10%.

Persisting Challenges in the Labour Market

• Agriculture still employs a large portion of workers, about 46.6%.
• More capital and skill-intensive production processes are causing imbalances in the labour market.
• Despite higher education levels, there are many unskilled and semi-skilled workers.
• Women’s workforce participation is low, often in lower-paying jobs (agriculture, unpaid family work).
• The proportion of youth not employed, educated, and trained (NEET) is around 28% in 2022.
  • The share of females is around five times more than males.
• There are mismatches between qualifications and skills, especially at higher education levels.
• Most jobs are informal and not very productive (90% of employment is informal).

Policy recommendations

• Making production more labour-intensive.
• Improving job quality through strong wage growth, social protection, and efforts to formalise jobs.
• Reducing labour market inequalities (especially for women).
• Improving skills training and job matching.
• Improving statistical data collection to understand changing labour market patterns better.