PMF IAS Test Series for UPSC Prelims Banner Ad
PMF IAS Test Series for UPSC Prelims Banner Ad
  • 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.
Sharing is Caring !!

Newsletter Updates

Subscribe to our newsletter and never miss an important update!

Assured Discounts on our New Products!

Leave a Reply

Your email address will not be published. Required fields are marked *


Never miss an important update!