Labour Market
Employment
India has 56.5 crore workers — the world's largest workforce after China. But 79% work in the informal sector without social security. Explore the employment landscape.
Understanding Unemployment
- Unemployment Rate(बेरोज़गारी दर)
- The percentage of people in the labour force who are actively seeking work but cannot find it. India uses three methods to measure this — each giving different numbers.
Unemployment Trend
Where Do Indians Work?
Despite contributing only 18% to GDP, agriculture employs 46% of workforce - highlighting productivity gap
45.8%
Agriculture
कृषि
25.9 Cr workers
Declining11.4%
Industry
उद्योग
6.4 Cr workers
Stable12.4%
Construction
निर्माण
7 Cr workers
Growing30.4%
Services
सेवाएं
17.2 Cr workers
GrowingThe Productivity Gap
Formal vs Informal Sector
Formal Sector
21%औपचारिक क्षेत्र
Workers with written contracts, social security benefits, and legal protections
11.9 crore workers
- ✓ Regular salary with pay slips
- ✓ PF, ESI, gratuity benefits
- ✓ Paid leave and job security
- ✓ Written employment contract
Informal Sector
79%अनौपचारिक क्षेत्र
Workers without formal contracts or social security, often in unregistered enterprises
44.6 crore workers
- ✗ No written contract
- ✗ No social security
- ✗ Irregular income
- ✗ Limited legal protection
Women in the Workforce
Women's LFPR Trend
Women's participation rose from 23% to 37% in 6 years — a significant improvement
Barriers to Women's Employment
| Country | Female LFPR |
|---|---|
| China | 61% |
| Bangladesh | 38% |
| India | 37% |
| Pakistan | 22% |
| World Average | 47% |
The Gig Economy
- Gig Economy(गिग अर्थव्यवस्था)
- Work based on short-term contracts or freelance assignments, often through digital platforms
Transport
Ola, Uber, Rapido
Delivery
Zomato, Swiggy, Amazon Flex, Dunzo
Services
Urban Company, Housejoy
Freelance
Upwork, Freelancer, Fiverr
Gig Worker Challenges
- • No minimum wage guarantee
- • No social security benefits
- • Algorithmic control of work
- • Classification as 'partners' not employees
- • No collective bargaining rights
MGNREGA: Rural Employment Guarantee
- MGNREGA(मनरेगा)
- Mahatma Gandhi National Rural Employment Guarantee Act — guarantees 100 days of wage employment per household per year in Rural areas across India. Launched in 2006.
Impact
- ✓ Reduced distress migration
- ✓ Increased rural wages
- ✓ Created rural infrastructure
- ✓ Women's economic empowerment
- ✓ Drought proofing
Challenges
- ! Delayed wage payments
- ! Inadequate budget allocation
- ! Quality of assets created
- ! Administrative capacity
| State | Person-Days (Crore) |
|---|---|
| West Bengal | 44.5 |
| Rajasthan | 38.2 |
| Tamil Nadu | 32.8 |
| Andhra Pradesh | 28.1 |
| Uttar Pradesh | 26.4 |
Skill India
Umbrella for skill development initiatives launched in 2015. Target: Skill 40 crore people by 2022 (later extended)
India's Skill Gap
PMKVY
Pradhan Mantri Kaushal Vikas Yojana
1.37 Cr
Trained
18.9%
Placement
ITIs
Industrial Training Institutes
15,042
Institutes
Apprenticeship
Learn while you earn program
SANKALP
Skills Acquisition and Knowledge Awareness for Livelihood Promotion
| Country | Formally Skilled Workforce |
|---|---|
| South Korea | 96% |
| Germany | 75% |
| Japan | 80% |
| China | 47% |
| India | 2.3% |
Labour Law Reforms
Consolidation of 29 labour laws into 4 labour codes
Code on Wages, 2019
वेतन संहिता
- • Universal minimum wage
- • Floor wage by Centre
- • Equal pay for equal work
Industrial Relations Code, 2020
औद्योगिक संबंध संहिता
- • 300 worker threshold for closure permission
- • Fixed-term employment
- • 14-day strike notice
Social Security Code, 2020
सामाजिक सुरक्षा संहिता
- • Universal social security
- • Gig workers coverage
- • Platform workers coverage
Occupational Safety Code, 2020
व्यावसायिक सुरक्षा संहिता
- • Single registration
- • Women in all sectors including night shifts
- • Annual health checkups
Status: Rules notified by some states, full implementation pending
Future of Work
Automation Risk
69M
jobs at high automation risk by 2030
Sectors: Manufacturing, Retail, Transport, Agriculture
New Opportunities
90M
new jobs possible with reskilling
Green jobs: 35 million by 2047
Healthcare: 8 million additional by 2030
Digital economy: 65 million by 2030
Demographic Dividend
Window: 2020-2050
Challenge: Creating 10 million jobs per year
Opportunity: World's largest workforce by 2027
Key Takeaways
- •46% of workforce is in agriculture but it contributes only 18% to GDP
- •79% of workers are in the informal sector without social security
- •India's unemployment rate (3.2%) is low but underemployment is high
- •Only 2.3% of workforce is formally skilled vs 96% in South Korea
- •Women's workforce participation rose from 23% to 37% in 6 years
- •Gig economy expected to grow 205% by 2030
- •India needs to create 10 million jobs annually for demographic dividend