Decent Work in India: A Comprehensive Guide

Introduction

India's unemployment rate has fallen from 6.1% in 2017-18 to 3.2% in 2023-24, according to recent data. However, this decline in unemployment does not necessarily mean that the quality of jobs has improved. In fact, many workers in India still lack access to social security, decent working conditions, and stable livelihoods.

The International Labour Organization (ILO) defines 'decent work' as employment that offers equitable income, workplace rights, social security, and dignity. Measured this way, India's labour market persistently exhibits high levels of informality, insecure employment, and increasing inequalities.

Measuring Decent Work

Using two rounds of the Periodic Labour Force Survey (PLFS), 2017-18 and 2023-24, the quality of employment in India has been analysed. By constructing a multidimensional Decent Work Index (DWI) based on three subdimensions — employment status, employment opportunity, and social security — across five major industries, it was observed that India has made progress in improving work conditions over time.

The overall DWI increased from 0.247 in 2017-18 to 0.302 in 2023-24. While this indicates some improvement in job quality, the overall level remains alarmingly low. More importantly, progress has been uneven across sectors, regions, gender, and caste groups.

Sectors with Improved Decent Work Conditions

Manufacturing in the secondary sector and transport in the tertiary sector showed the highest improvement in decent work conditions during this period. The manufacturing sector's DWI increased from 0.324 to 0.411 due to a gradual rise in formalisation and digitalisation.

The transport sector also experienced significant progress, largely due to the expansion of urban logistics and app-based platform work. However, these improvements also reveal an important concern: even in sectors where employment conditions have improved, access to social security remains limited.

The Social Security Gap

A large number of workers still do not have written contracts, paid leave, provident fund benefits, or insurance coverage. Though employment opportunities are increasing, labour protections and job security are not improving at the same pace.

Agriculture, which continues to employ the largest share of India's workforce, remains the lowest-quality employment-generating sector. The agricultural sector's DWI marginally increased from 0.211 to 0.267 during the study period; most agricultural workers continue to be self-employed or unpaid family workers without stable income or labour protections.

Regional Disparities

Regional disparities further expose the uneven nature of labour market progress. States such as Goa, Kerala, Tamil Nadu, and Haryana perform substantially better in terms of decent-work creation; in contrast, Bihar, Jharkhand, and Uttar Pradesh continue to lag behind.

Policy Concerns

The findings point to a serious policy concern: while India has been able to create more jobs, it is still struggling to ensure that these jobs provide decent working conditions and security. Poor-quality employment generation has consequences for economic growth.

Workers without social security spend less, save less, and remain vulnerable to economic shocks. Moreover, informality depresses productivity, weakens tax capacity, and increases inequality.

Way Forward

The way forward is to shift from a 'job-counting approach' to a 'job-quality approach'. This requires extending social protection to all workers, formalising labour conditions, and implementing intersectional labour policies.

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Platforms such as e-Shram are a good start, but registering alone does not guarantee protection; workers need real protection, not just a database entry.

• Social protection must extend to all workers, including gig and platform workers, self-employed, farmers, and informal workers.
• Formalisation policies should focus on labour conditions, not just business registration.
• Labour policies need to be more intersectional, with targeted measures for women from marginalised caste groups.
• Labour reforms should be designed around the needs of workers first, rather than being framed primarily as a means of easing the cost of doing business.

In conclusion, while India's unemployment rate has fallen, the quality of jobs remains a concern. It is essential to address the social security gap, regional disparities, and policy concerns to ensure that workers have access to decent work and stable livelihoods.

Expert Perspective

According to experts, the key to improving decent work in India lies in addressing the root causes of informality and insecurity in the labour market. This requires a comprehensive approach that includes extending social protection, formalising labour conditions, and implementing intersectional labour policies.

Implications for Readers in India

The issue of decent work has significant implications for readers in India. With many workers still lacking access to social security and decent working conditions, it is essential to raise awareness about the importance of decent work and the need for policy reforms to address the social security gap and regional disparities.

What to Watch Next

As India continues to navigate the challenges of decent work, there are several key areas to watch in the coming months and years. These include the implementation of labour reforms, the expansion of social protection programs, and the growth of the gig and platform economy.

Timeline of Key Events

Here is a brief timeline of key events related to decent work in India:

• 2017-18: The Periodic Labour Force Survey (PLFS) is conducted, providing data on the quality of employment in India.
• 2023-24: The PLFS is conducted again, showing some improvement in job quality, but with uneven progress across sectors and regions.
• 2024: The India Employment Report is released, highlighting the challenges of informality and insecurity in the labour market.

Background

The concept of decent work has been around for several decades, but it has gained significant attention in recent years due to the growing concerns about job quality and labour market inequality. The International Labour Organization (ILO) has been at the forefront of promoting decent work, and its definition of decent work has been widely adopted.

In India, the issue of decent work has been particularly relevant due to the country's large informal sector and the prevalence of precarious work arrangements. The government has launched several initiatives to promote decent work, including the introduction of the e-Shram platform, which aims to provide social security benefits to informal workers.