- Recent government data shows a rise in formal jobs and self-employment in India, alongside a fall in youth unemployment, now below the global average.
India’s Employment Landscape
- Formal Employment: Over 13 million net Employees’ Provident Fund Organisation (EPFO) subscribers added in FY25; 77.3 million total since September 2017.
- Self-Employment: Increased from 52.2% to 58.4%.
- Casual Labour: Declined from 24.9% to 19.8%.
- LFPR: Labour Force Participation Rate rose from 49.8% (2017–18) to 60.1% (2023–24).
- WPR: Worker-Population Ratio improved from 46.8% to 58.2%.
- Youth Unemployment Rate: Dropped from 17.8% (2017–18) to 10.2% (2023–24).
- Policy Reforms: Implementation of labour codes, National Career Service, and initiatives like PMEGP, MUDRA Yojana, Startup India.
- Digital Integration: E-Shram & EPFO digitisation improved tracking & coverage of formal jobs.
- Emerging Sectors: Startups, global capability centres (GCCs), digital services and the gig economy, creating new and diverse employment opportunities for the youth.
- Agripreneurship: Schemes for Agro-MSMEs and agri-startups boosted self-employment.
- Structural Shifts: Rising educational enrolment and skilling programs such as PMKVY, Skill India enabling rising self-employment in India.
Associated Challenges
- Gig Economy: Lack of income and social security for platform workers.
- Agricultural Dependence: Agriculture still employs a large portion of the workforce, accounting for approximately 46.6%.
- Skill Mismatch: Mismatches between qualifications and skills, especially at higher education levels.
- Informal Dominance: Most jobs are informal & not very productive (90% of employment is informal).
- Youth Exclusion: The proportion of youth who are not employed, educated, or trained (NEET) is approximately 28% (MoSPI).
Way Forward
- Labour Intensification: Encourage labour-intensive sectors such as textiles to absorb surplus labour.
- Job Formalisation: Enhance job quality via wage growth, social security, and formal employment.
- Regulatory Measures: Mandating basic labour protection like minimum wages, maximum working hours, paid leaves, etc.
- Skill Training: Invest in training programs that help workers transition into higher-skilled or permanent employment opportunities.
Bridging the job quantity–quality gap needs reforms in skilling, industry, and welfare. Government efforts like Skill India & NITI Aayog’s push for “Skill, Speed and Scale” aim to turn youth into job creators, not just seekers.
Reference: Live Mint
PMF IAS Pathfinder for Mains – Question 266
Approach
- Introduction: Write briefly about the employment paradox of India by mentioning current data.
- Body: Write the reason for this paradox, challenges to handle this paradox and measures for it.
- Conclusion: Emphasis on digi-livelihoods, universal protection, & MSME support through initiatives.
