The United Indian
The United Indian

Insights into Employment Status In India: Decoding Job Market

employment status in India

Let the Stats Speak

Feb 27, 2024

Have you ever wondered about India's diverse job environment and how it affects the lives of millions across the country? 

Employment status in India & worldwide is a pervasive phenomenon that impacts every facet of society, including individuals, families, and the economy as a whole living in distant rural villages or busy urban centers. Employment in this diversified and lively country has many different forms, ranging from official positions with defined contracts and benefits to informal work marked by unpredictability and a lack of social security. Furthermore, self-employment provides opportunity for entrepreneurship and autonomy, but it also presents unique problems. 

As we delve into the patterns, difficulties, and possible solutions that characterize this complex landscape, we will also explore the job position in India. Understanding the variances of employment status can help us comprehend the challenges and possibilities that India's workforce faces, opening the door to meaningful discussions and actions that will support equitable growth and prosperity for all. 

employment status in India


The Employment System In India

The employment situation in India is divided into three categories: formal, informal, and self-employment.

1. Formal Employment : Jobs with written contracts, social security benefits, and regulatory compliance are usually associated with formal employment. These occupations are found in organized industries like government agencies, big firms, and license-holding companies.

2. Informal Employment : jobs without official contracts or social security benefits are included in the category of informal employment, which is typically associated with poor pay and unstable work. People who work in the informal sector do jobs like housework, street vending, and small-scale business ownership.

3. Self-Employment : The last type of employment is self-employment, which is when people work for themselves as freelancers, small business owners, or entrepreneurs. It can be autonomous and flexible, but it can also present difficulties like unstable income and unstable employment.

Unemployment remains a key concern in India's economic landscape.

Being one of the most populated countries in the world with a diverse labor force, changes in the employment status in India has a significant impact on the expansion and advancement of the nation.


employment status in India

What is India's current unemployment rate?
Indian unemployment rate has recently decreased; the most recent data offers some promise. The National Sample Survey Survey (NSSO) reports that the unemployment rate in metropolitan areas for people 15 years of age and older dropped from 8.2 percent in January to 6.8 percent in March of 2023. 
As per unemployment statistics in India, the unemployment rate in January 2024 has been the lowest in the past 16 months. However, unemployment among youth aged between 20 and 30 has registered an increase in the Oct-Dec quarter of 2023. 

Past Economic Events That Affected Unemployment Statistics In India

1. Demonetization (2016)
It was noted that demonetization led to the elimination of jobs, particularly in the informal sector. According to estimates from the Centre for Monitoring Indian Economy, 1.5 million jobs were lost between January 2017 and April 2017. Apart from this, there had been a decrease in the labor force participation rate (LPR). 

2. Goods and Service tax (GST) Implementation 
The employment situation in India was significantly impacted by the introduction of the Goods and Services Tax (GST) in 2017. According to the data from the Ministry of Statistics and Programme operation, over 1.8 million additional taxpayers registered under the GST in its first year of operation. This led to regulation of the economy. However, there were short-term interruptions in particular industries, resulting in a projected loss of 1.5 million employments. 

3. Covid-19 Pandemic (2020) 
COVID-19 pandemic has undoubtedly reshaped the employment situation in India, triggering shifts, challenges, and opportunities in the workforce market. It was observed that more than 40 crore informal workers in India were pushed into deeper poverty due to the pandemic. The unemployment rate increased by nearly 14.8% in just one month, rising to 23.5% in April 2020.  

employment status in India

Government Initiatives and Policies

In order to meet the varied requirements of the labor force and promote economic progress, government policies and initiatives play a critical role in shaping India's employment environment. The government works to ensure a robust and inclusive employment ecosystem by promoting job opportunities, improving skill development, and offering vital support through initiatives like Made in India, Skill India, and NREGA. These programs not only improve the employment situation in India but also advance the socioeconomic development and prosperity of the country as a whole.

•  Make in India Campaign: Introduced in an effort to support manufacturing and draw in foreign investment, resulting in a large number of employment openings in a variety of industries.
•  Skill India: The mission is to improve youth employability by providing them with customized skill development programs that are in line with industry demands. 
National Rural Employment Guarantee Act (NREGA): Offers rural households a safety net during hard times by guaranteeing 100 days of pay work. 
Startup India and Standup India Initiatives: Designed to promote innovation and job development by making it easier for prospective entrepreneurs to acquire funding and support. 

Ongoing Evaluation and Refinement- Continuous assessment and refinement of policies are crucial to ensure their efficacy in promoting inclusive and sustainable employment growth nationwide.

employment status in India

Skill Development and Education Initiatives
Education and skill development are important ways to create jobs and improve employment situation in India. The government works on improving the employability of the workforce by offering vocational training and updating current skills through programs like the Skill India Mission. In addition, changes in education place a strong emphasis on innovation, entrepreneurship, and hands-on learning, enabling people to succeed in a variety of career areas. Through the prioritization of skill development and education, India can effectively leverage the potential of its extensive workforce, so promoting economic growth and establishing enduring employment prospects across diverse industries.

The unsatisfactory unemployment statistics in India are results of from factors like skill gaps, inadequate schooling, and a lack of work prospects. There are still a lot of unemployed and underemployed people, especially in young people and underprivileged areas. To address these difficulties, specific measures are required, such as skill development programs, educational changes, and entrepreneurship-promoting laws. India can unleash the potential of its workforce and promote inclusive growth and economic development by addressing these concerns head-on.

employment status in India

The Indian workforce market is evolving quickly, offering a variety of opportunities as well as significant limits. This shift in the nature of employment, driven by changes in the economy and technology, requires that people arm themselves with an extensive list of skills.
In the upcoming years, the job market in India is expected to grow by 20%. The Indian workforce is predicted to undergo an enormous shift in 2024 due to investments made in artificial intelligence and automotive embedded systems. The future of employment situation in India will be shaped by these investments, which will also feed the skilling ecosystem.

In summary, although India's job situation poses difficulties, it also provides opportunities for advancement and progress. Let's push for laws that give social security, skill development, and employment creation a priority. Let's all do our part to empower marginalized populations and encourage entrepreneurship. India's workers can have a better future if we work together. Participate in the discussion, push for reform, and take initiative to create a more prosperous and inclusive work environment for everybody.


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