Economy
Falling unemployment and the shortage of decent work
Why in news
- An analysis of Periodic Labour Force Survey data shows that falling unemployment has not ensured secure jobs, adequate earnings or social protection.
What is decent work?
- Decent work provides a reasonable income, workplace rights, social protection and opportunities for workers to express their concerns.
- A person may count as employed while working without a written contract, paid leave, insurance or dependable earnings. Employment numbers therefore reveal only part of the labour-market picture.
- Sustainable Development Goal 8 connects economic growth with productive employment and decent work.
What the analysis shows
- India’s unemployment rate declined from 6.1% in 2017–18 to 3.2% in 2023–24.
- The analysis constructed a Decent Work Index using employment status, employment opportunities and social security across five major industries.
- The overall index improved from 0.247 to 0.302, but gains remained uneven.
- Manufacturing improved from 0.324 to 0.411, while agriculture improved from 0.211 to 0.267 and continued to perform poorly.
- Women belonging to Scheduled Tribes and Other Backward Classes experienced worsening decent-work outcomes even as outcomes for men improved.
Important concepts
- Informal employment means employment without effective access to formal protections or benefits. It can exist even inside a registered enterprise.
- Underemployment occurs when people work fewer hours than they need or perform work that inadequately uses their skills.
- Intersectional disadvantage arises when disadvantages overlap, such as those associated with gender, caste and insecure employment.
Significance and policy priorities
- Insecure earnings weaken household consumption, savings and resilience during illness or unemployment.
- Social protection should cover informal, self-employed and platform workers and remain accessible when workers change employers or locations.
- Registration on e-Shram helps identify workers, but registration alone does not provide insurance, pensions or income security.
- Formalisation should improve actual working conditions through written contracts, paid leave and social-security contributions.
- Childcare, safe transport, skill training and protection against discrimination are necessary to address unequal outcomes.



