The Dilemma of Employment Trends in India: Findings from the ILO’s India Employment Report 2024

1. Unravelling the ILO Report:

The International Labour Organisation's (ILO) India Employment Report 2024 presents an analysis of India’s employment challenges and trends over two decades, utilising various data sources. The report explores both positive and negative trends in employment, particularly focusing on youth employment.

2. Bright Spots in India’s Employment Landscape:

- Women encounter a rise in self-employment and unpaid family work.

- Steady increase in labour productivity accompanies technological progress.

- Hike observed in female labour market participation rates, especially in rural regions.

- A shift from agricultural to non-agricultural sector jobs in the workforce, hindered by the COVID-19 pandemic.

3. The Dark Side: Challenges in India’s Employment Scenario:

- Youth unemployment took a drastic leap from 5.7% in 2000 to 17.5% in 2019.

- Employment growth remained stagnant till 2019 before beginning to rise.

- A vast portion of employment (82%) is dominated by the informal sector. Predominance of self-employment and casual employment.

- Wages remain low, stagnant or even at a decline. A slight wage increase was observed for casual labourers, while regular workers witnessed stagnant or declining real wages.

- Foreseen migration rate of India is about 40% by 2030, with a projected urban population of 607 million.

- Rise in contractualization, with long-term contracts for only a minority of workers. Increase in regular employment till 2018, followed by a decline.

- Livelihood insecurities proliferate, particularly in non-agricultural organised sectors, with insufficient social protection coverage.

- The young Indian workforce, despite being a demographic asset, confronts a skills gap. 75% lack the essential skills like sending emails with attachments, 60% are unable to copy-paste files, and 90% cannot use spreadsheets for mathematical formulas.

4. Education and Skills Gap:

- Notwithstanding an overall rise in education levels, significant disparities persist across social groups, economic backgrounds, and regions.

- Only a minuscule proportion of youth have undergone formal vocational training, with less than 4% accessing it.

5. Recommendations and Way Forward:

- The report emphasises the need for targeted interventions to enhance vocational education, increase the level of formal employment, improve wages, and reduce the skills gap.

- Strengthening the link between education and employment is essential. Initiatives like skill development programs, increased investment in education, promoting digital literacy among the youth are urged to be implemented.

6. Types of Employment in India:

- The Indian employment landscape is primarily bifurcated into organised and unorganised sectors. The former includes employees of the government, public sector units, and private sector enterprises. The latter includes the labour-intensive, low-scale industries, agricultural labour, home-based workers, and casual labour in construction, trade, and transport.