The release of the India Employment Report 2024 by the Institute for Human Development and the International Labour Organisation has sparked crucial conversations about the state of employment in the country.
While there are signs of improvement, especially amidst economic distress, the report highlights significant concerns, particularly regarding youth and women in the workforce.
As we delve into the findings of this report, it becomes evident that addressing these challenges demands bold and concerted policy action.
One of the most striking revelations of the report is the paradoxical improvements in various labour market indicators amidst economic turbulence.
Despite the long-term deterioration in the years leading up to 2019, recent years have seen positive shifts in metrics such as the labour force participation rate and unemployment rate. However, beneath these surface improvements lie deeper issues that cannot be overlooked.
First and foremost, the quality of employment remains a pressing concern. Informal employment, characterized by its lack of security and benefits, continues to rise, with self-employment and unpaid family work disproportionately affecting women.
This trend not only perpetuates gender disparities but also hampers overall economic progress by stifling productivity and perpetuating poverty cycles.
Moreover, the reversal of the slow transition to non-farm employment signals structural challenges within the economy. While the decline in agricultural employment was once seen as a positive shift, recent years have witnessed stagnation or even reversals in this trend. This highlights the urgent need for policies that foster diversification and growth in non-agricultural sectors, particularly manufacturing and services.
Youth employment presents another critical area of concern. Despite an increase in overall youth employment, the quality of jobs available to young workers remains subpar, especially for those with higher qualifications. Unemployment rates among educated youth, particularly young women, are alarmingly high, posing a significant barrier to economic inclusion and social mobility.
Moving forward, there are five crucial policy areas that demand immediate attention:
1. Promoting Job Creation: Initiatives aimed at stimulating job growth across various sectors of the economy are essential to absorb the increasing number of entrants into the workforce.
2. Improving Employment Quality: Enhancing the standards of employment by ensuring access to secure and dignified work with adequate benefits and protections is imperative for promoting sustainable economic development.
3. Addressing Labour Market Inequalities: Tackling disparities in the labour market, particularly those related to gender, region, and socio-economic status, is essential for fostering inclusivity and social cohesion.
4. Strengthening Skills and Active Labour Market Policies: Investing in education, training, and re-skilling programs, along with implementing effective labour market policies, is crucial for equipping workers with the necessary skills and adaptability to thrive in a dynamic economic landscape.
5. Bridging Knowledge Deficits: Closing gaps in understanding labour market dynamics and youth employment patterns through comprehensive research and data collection is essential for informed policymaking and targeted interventions.
The report also highlights the potential impact of artificial intelligence (AI) on employment, particularly in the outsourcing industry. To mitigate potential disruptions, there is a need for proactive investment and regulatory measures in emerging sectors such as care and digital economies, which offer opportunities for productive employment.
The findings of the India Employment Report 2024 serve as a clarion call for action.
To build a more resilient, inclusive, and equitable economy, we must redouble our efforts to address the systemic challenges facing India's workforce.
Follow us
