The share of workers with regular wages in India has experienced significant growth since 2004, according to a report titled “State of Working India 2023: Social Identities and Labour Market Outcomes” prepared by economists and researchers at the Azim Premji University. The report highlights the increase in regular job creation, with the country producing three million regular jobs annually between 2004 and 2017, and five million jobs from 2017 to 2019. However, the report also sheds light on the recent slowdown in job creation due to economic downturns and the COVID-19 pandemic.

The researchers discovered that only 6% of these regular wage jobs provide any form of social security, such as health insurance or accidental care insurance. The findings are based on data sourced from National Statistical Organisation surveys, census reports, periodic labour force surveys, and other government sources.

Over the years, the percentage of men working in regular jobs with fixed monthly or bi-weekly salaries has increased from 18% to 25%, while the proportion of women in such jobs has jumped from 10% to 25%.

Caste-based Segregation

The report also examines caste-based segregation in employment. In 2004, more than 80% of sons of casual wage workers engaged in casual employment, regardless of their caste. However, the incidence of better-quality work, such as regular salaried jobs, increased for non-SC/ST castes, reducing the percentage to 53% by 2018. Even among SC/ST castes, the percentage decreased, though to a lesser extent, from 86% to 76%. The study recognizes a decline in caste-based segregation and highlights that representation of SCs in waste management and sewerage decreased but increased slightly again in 2011.

Gender-based Earnings Disparities

The report suggests a reduction in gender-based earnings disparities over the past 20 years. In 2004, salaried women workers earned only 70% of what men earned. By 2017, this gap had narrowed, and women were earning 76% of men’s salaries. Since then, the gender pay gap has remained relatively constant till 2021-22, indicating some progress in addressing gender inequality in the labor market.

Effects of the COVID-19 Pandemic

The report delves into the impact of the COVID-19 pandemic on employment rates. Surprisingly, the unemployment rate was lower post-COVID than it was before the pandemic for all education levels. However, it remained above 15% for graduates, particularly concerning was the fact that it spiked to a staggering 42% for graduates under 25 years old. Additionally, the rate of women unemployment has risen due to a distress-led increase in self-employment. Prior to the pandemic, 50% of women were self-employed, but this number increased to 60% in the aftermath of COVID-19. Consequently, earnings from self-employment declined in real terms during this period, reaching only 85% of the pre-pandemic levels by the second quarter of 2021.

Significance

The findings of this report provide crucial insights into the changing dynamics of the Indian labor market, highlighting both the progress made in terms of regular wage job creation and the challenges the country faces in terms of providing social security benefits for workers. The report sheds light on the need for policies and interventions to bridge the ongoing gender-based earnings disparities and address caste-based segregation in employment. Additionally, the impact of the COVID-19 pandemic amplifies the urgency to prioritize employment opportunities for graduates, especially women, and ensure their financial stability.

Fun Fact

Did you know that the number of regular wage jobs created annually in India increased from three million between 2004 and 2017 to five million between 2017 and 2019? This signifies the efforts made to generate stable employment opportunities in the country and improve the livelihoods of its citizens.