India Employment Report 2024: Key Highlights

Context

• Recently, the International Labour Organisation (ILO) and the Institute of Human Development (IHD) have released a report named “India Employment Report 2024”.
• Basis of India Employment Report 2024: The research is mostly based on data analysis from the National Sample Surveys and Periodic Labour Force Surveys conducted between 2000 and 2022.

Key Highlights of the India Employment Report 2024

• Female Labour Market Participation Rate: 

  • After dropping dramatically in previous years, the female labour market participation rate began to rise more rapidly in 2019, particularly in rural areas.

• Shifting of Workforce in Non-farm Sectors: 

  • One of the most important aspects of the Indian labour market is the gradual and continuous shift of the workforce away from agriculture and into non-farm sectors.

• Type of Employment in India: 

  • Employment in India is primarily self-employment and casual employment.
    • Approximately 82 percent of the workforce works in the informal sector, with approximately 90 percent informally employed.

• Stagnant Wages: 

  • While casual laborer salaries rose modestly between 2012 and 2022, regular workers’ actual wages remained stagnant or fell.

• Inadequate Data on Migration: 

  • Official surveys do not accurately capture India’s migration levels.
    • India is anticipated to have a migration rate of over 40% by 2030, with an urban population of approximately 607 million.

• Increased Urbanisation:

• • Urbanisation and migration are anticipated to expand significantly in the future.

Challenges of Youth Employment:

• Demographic Dividend: A considerable part of the population is of working age, and India is likely to remain in the potential demographic dividend zone for at least the next decade.
• Decline in Youth Population: However, the country is at a turning point since the youth population, which was 27% of the overall population in 2021, is predicted to fall to 23% by 2036.
  • Youth labour-force participation has been significantly lower than that of adults, and it has been dropping over time (2000-19), owing mostly to increased engagement in education.
    • The International Labour Organisation (ILO) defines youth as the 15-to-24 age group.
• Rise in Youth Unemployment: Youth unemployment nearly tripled, rising from 5.7% in 2000 to 17.5% in 2019 but falling to 12.1% in 2022.

Suggestions by the India Employment Report 2024

The India Employment Report 2024 recommends five key policy areas for youth in India, 

• Including job creation
• Improving employment quality,
• Addressing labor market inequalities,
• Strengthening skills and active labor market policies, 
• Bridging knowledge gaps on labour market patterns and youth employment.

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