Human Development in partnership with the International Labour Organization (ILO) published the India Employment Report 2024
India Employment Report 2024: The “India Employment Report 2024 is published by Human Development in partnership with the International Labour Organization (ILO). India Employment Report 2024 offers insights into the current state of employment in India where they cover various aspects of the labour market, including employment trends, job creation, unemployment rates, wage growth, and challenges faced by different sectors or demographics.
India Employment Report 2024
India Employment Report 2024
The “India Employment Report 2024,” a collaboration between Human Development and the International Labour Organization (ILO), offers a comprehensive analysis of the country’s labour market conditions, highlighting both improvements and persistent challenges. It identifies a paradoxical trend of recent improvements in labour market indicators after a prolonged period of deterioration from 2000 to 2019, coinciding with economic distress. Key concerns outlined in the report include a reversal in the transition to non-farm employment, an increase in self-employment and unpaid family work, particularly among women, lower quality youth employment compared to adults, and stagnant or declining wages. The report also discusses state-wise variations in employment conditions, the rise of informal employment, and sectoral shifts in employment patterns. Additionally, it emphasizes the low female labour force participation rate, sectoral employment shifts, and challenges faced by educated youth, especially in terms of unemployment rates. The report concludes with a set of policy recommendations aimed at promoting job creation, improving employment quality, addressing inequalities, strengthening skills development, supporting Micro, Small, and Medium Enterprises (MSMEs), and enhancing job security for gig/platform workers. Overall, the report serves as a valuable resource for policymakers, social partners, civil society, and researchers, providing insights to inform strategies and interventions aimed at addressing the complex dynamics of India’s labour market.
India Employment Report 2024- Key Facts
- Overview of Labour Market Conditions:
- Recent years have seen “paradoxical improvements” in labour market indicators in India following a long-term deterioration from 2000-2019, which coincided with periods of economic distress.
- Key concerns include the reversal of the slow transition to non-farm employment, an increase in self-employment and unpaid family work, particularly among women, lower quality youth employment compared to adults, and stagnant or declining wages and earnings.
- Unemployment Rates:
- The unemployment rate fell between 2019-2022 after rising from 2000-2019.
- States like Bihar, Odisha, Jharkhand, and UP have consistently ranked at the bottom of the ’employment condition index’, while Delhi, Himachal Pradesh, Telangana, Uttarakhand, and Gujarat have remained at the top.
- Employment Quality:
- Informal employment has risen, with around half of formal sector jobs being informal.
- Self-employment remains the primary source of work, accounting for 55.8% of employment in 2022.
- Regular employment, associated with better job quality, declined to 21.5% in 2022 after increasing to 23.8% in 2019 from 14.2% in 2000.
- Casual employment, linked to poorer job quality, fell to 22.7% in 2022 from 33.3% in 2000.
- Women’s Labor Force Participation:
- India’s female labour force participation rate (LFPR) remains among the world’s lowest at 32.8% in 2022, significantly lower than men’s.
- Female LFPR declined by 14.4 percentage points from 2000-2019 but rose by 8.3 points from 2019-2022.
- Sectoral Employment Shifts:
- The share of agriculture in total employment fell from 60% in 2000 to around 42% in 2019, with construction and services absorbing much of this transition.
- However, this slow transition has stagnated or reversed since 2018-19, with manufacturing’s share of employment remaining around 12-14%.
- Youth Employment:
- Youth employment and underemployment rose from 2000-2019 but fell during the pandemic.
- Unemployment is significantly higher among educated youth, especially graduates.
- The unemployment rate for secondary educated youth was 18.4% in 2022, while graduate unemployment stood at 29.1% overall, with higher rates for women.
- Policy Recommendations:
- The report proposes several policy recommendations, including promoting job creation, improving employment quality, strengthening skills development, supporting MSMEs with digitalization and AI, boosting employment in emerging care and digital economies, providing job security for gig/platform workers, and addressing knowledge gaps on labour market patterns and youth employment.
Who published the India Employment Report 2024?
Human Development in partnership with the International Labour Organization (ILO) published the India Employment Report 2024.
What are the key concerns highlighted in the India Employment Report 2024?
The report identifies concerns such as the reversal of the slow transition to non-farm employment, the increase in self-employment and unpaid family work, particularly among women, lower quality youth employment compared to adults, and stagnant or declining wages and earnings.
Which states have consistently ranked at the bottom of the ’employment condition index’?
States like Bihar, Odisha, Jharkhand, and Uttar Pradesh (UP) have remained at the bottom of the ’employment condition index’.
