About the India Employment Report 2024

Context:

The International Labour Organisation (ILO) and the Institute of Human Development (IHD) have jointly published a report titled “India Employment Report 2024”.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. About the India Employment Report 2024
2. Key Highlights of the India Employment Report 2024
3. About the Institute for Human Development (IHD)

About the India Employment Report 2024

Publication Background:

• The India Employment Report 2024 is the third edition in a series published by the Institute for Human Development focusing on labour and employment issues.
• The report is conducted in collaboration with the International Labour Organization (ILO).

Scope and Focus:

• The report delves into the challenges of youth employment amidst changing economic, labour market, educational, and skills landscapes in India.
• It assesses the transformations observed over the past two decades and highlights recent trends, including those influenced by the COVID-19 pandemic.

Key Highlights of the India Employment Report 2024

Data Sources:

• The report primarily analyzes data from the National Sample Surveys and the Periodic Labour Force Surveys spanning from 2000 to 2022.

Employment Trends & Current Scenario:

• Female Labour Market Participation:
  • After a significant decline in earlier years, there was a notable uptick in the female labour market participation rate from 2019, especially in rural areas.
• Workforce Transition:
  • The Indian labour market shows a gradual shift of the workforce from agriculture to non-farm sectors.
• Employment Nature:
  • Self-employment and casual employment dominate the employment landscape in India.
  • Approximately 82% of the workforce operates in the informal sector, with almost 90% being informally employed.
• Wage Trends:
  • While casual labour wages saw a modest increase between 2012–22, real wages for regular workers remained stagnant or declined.
• Migration and Urbanization:
  • Official surveys do not fully capture India’s migration levels.
  • Urbanization and migration rates are anticipated to rise significantly, with a projected migration rate of 40% by 2030 and an urban population reaching approximately 607 million.

Challenges of Youth Employment:

• Demographic Overview:
  • India is in a potential demographic dividend phase with a significant working-age population.
  • However, the youth population is expected to decline from 27% in 2021 to 23% by 2036.
• Labour Force Dynamics:
  • Each year sees approximately 7–8 million youths entering the labour force.
  • Youth labour market participation has been lower compared to adults due to increased educational pursuits.
  • Youth unemployment rates surged from 5.7% in 2000 to 17.5% in 2019 but reduced to 12.1% in 2022.
  • Post-lockdown, there was a quick recovery in youth labour market indicators, albeit with additions primarily in low-quality work.

Suggestions for Policy Action

• Key Policy Areas:
  • The report identifies five crucial policy areas for targeted action, applicable both broadly and specifically for youth in India:
    • Promoting job creation
    • Enhancing employment quality
    • Addressing labour market inequalities
    • Strengthening skills and active labour market policies
    • Bridging knowledge gaps on labour market patterns and youth employment.

About the Institute for Human Development (IHD)

Establishment:

• The Institute for Human Development (IHD) was founded in 1998.
• It operates under the umbrella of the Indian Society of Labour Economics (ISLE).

Mission and Vision:

• Objective:
  • The primary goal of IHD is to contribute to the creation of a society that upholds and values an inclusive social, economic, and political framework.
  • It strives to build a society free from poverty and deprivations.

Research Areas:

• IHD focuses on conducting research in various domains related to human development:
  • Labour and employment
  • Livelihood
  • Gender studies
  • Health
  • Education
  • Other facets of human development.

-Source:  The Hindu