Even as unemployment falls, lack of ‘decent work’ in India
Poor-quality employment generation has consequences for economic growth; workers without social security spend less, save less and remain vulnerable to economic shocks
India's unemployment rate has dropped from 6.1% in 2017-18 to 3.2% in 2023-24, while female workforce participation has increased for the first time in decades. However, the question remains: what kind of jobs have been generated and what working conditions do they entail? It is crucial to recognize that employment alone does not guarantee dignity, security or a stable livelihood.
The International Labour Organization defines 'decent work' as employment that provides equitable income, workplace rights, social security and dignity, a principle embedded in Sustainable Development Goal 8. Despite progress in improving work conditions, India's labour market still exhibits high informality, insecure employment and increasing inequalities.
In a study using two rounds of the Periodic Labour Force Survey, India's Decent Work Index rose from 0.247 in 2017-18 to 0.302 in 2023-24. Yet, progress has been uneven across sectors, regions, gender and caste groups. Manufacturing and transport sectors have shown the most improvement, but even within these, access to social security remains limited.
Unemployment among educated youth in India also carries a household cost, as nearly 90% of the workforce remains informally employed. This situation is further exacerbated by social inequality, with women from Scheduled Tribes and Other Backward Classes experiencing a decline in decent-work outcomes.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
