Founded in 1998 under the umbrella of the Indian Society of Labour Economics (ISLE), the Institute for Human Development (IHD) operates as a non-profit autonomous organization. Its core mission is to facilitate the development of a society that embraces and promotes inclusivity across social, economic, and political realms, striving to eradicate poverty and deprivation.
Key Highlights of the Report
- Poor Employment Conditions: Despite improvements in overall labor force participation and employment rates, challenges persist, including stagnant or declining wages, increased self-employment among women, and a higher proportion of unpaid family work among youth.
- Youth Employment Challenges: The report reveals that almost 83% of India's unemployed workforce comprises youth, with the share of educated youth in the total unemployed nearly doubling from 2000 to 2022. Educated youths, in particular, face higher levels of joblessness.
- Paradoxical Improvements: While certain labor indicators have shown improvement over the past two decades, the overall employment situation remains challenging. Non-farm sectors haven't grown sufficiently to absorb workers from agriculture, and the proportion of regular employment started declining after 2018, despite steady growth prior.
- Skills Gap and Digital Literacy: A significant portion of India's youth lacks basic digital literacy skills, hindering their employability. For instance, a considerable percentage are unable to perform tasks such as sending emails with attachments or basic spreadsheet functions.
- Declining Wages: Real wages of regular workers have either stagnated or declined, and self-employed earnings have also experienced a decline after 2019. Moreover, a significant percentage of unskilled casual laborers did not receive the prescribed daily minimum wages in sectors like agriculture and construction.
Restructuring Industrial Employment
- Emergence of Digitally Mediated Gig and Platform Work: The landscape of industrial employment has swiftly evolved with the advent of digitally mediated gig and platform work, characterized by algorithmic control over labor processes. However, these platforms largely operate within the informal sector, lacking adequate social security provisions.
- Anticipated Surge in Migration: Urbanization and migration rates are projected to witness significant growth in the forthcoming years. By 2030, India is estimated to experience a migration rate of approximately 40%, with the urban population reaching around 607 million. This urban expansion will primarily stem from migration, showcasing regional imbalances in labor markets. Migration trends predominantly favor movement from eastern, northeastern, and central regions to southern, western, and northern areas.
- Regional Disparities: Notable discrepancies in employment outcomes persist among states, with certain regions consistently lagging behind in employment indicators. States like Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Jharkhand, and Chhattisgarh have grappled with persistent challenges in securing employment opportunities, influenced by regional policies.
- Growing Gender Disparity: India confronts a significant gender gap within the labor market, characterized by low rates of female labor force participation. Young women, particularly those with higher education, encounter substantial unemployment challenges. Despite affirmative action and targeted policies, social inequalities endure, hindering Scheduled Castes and Scheduled Tribes from accessing better employment prospects. Although educational attainment has improved across all segments, entrenched social hierarchies exacerbate employment disparities.
