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22nd September 2023 (9 Topics)

State of Working India 2023

Context

Recently, the ‘State of Working India 2023’ report was released by Azim Premji University’s Centre for Sustainable Employment.

Highlights of the Report:

  • About: It uses data sources like the National Statistical Office, including Employment-Unemployment Surveys and the Periodic Labour Force Surveys, and has revealed major trends in India’s labour market.
  • Findings: The analysis was drawn from seven charts from the report on intergenerational mobility and women’s workforce participation rates:
  • Changing composition of employment type, based on caste: Between 2004 and 2018, more sons of fathers who did casual wage work are now getting better jobs, except for Scheduled Caste workers, where progress is slower.
    • Between 1983 and 2021, more Scheduled Caste (SC) workers have regular wage jobs, but the proportion is lower than for general caste workers. SC workers also have higher self-employment rates.
  • Intergenerational mobility matrices over time disaggregated by caste, for SC/ST groups:
    • Between 2004 and 2018, more sons of fathers who did casual wage work are now getting better jobs, except for Scheduled Caste workers, where progress is slower.
    • Between 1983 and 2021, more Scheduled Caste (SC) workers have regular wage jobs, but the proportion is lower than for general caste workers.
    • SC workers also have higher self-employment rates.
  • Industries showing an overrepresentation of Women, SCs:
    • In 2018, there was more economic mobility for sons of general caste casual wage workers compared to SC/STs.
    • Sons of casual wage workers shifted towards informal, semi-formal, and regular wage work.
    • Casual wage work had the highest intergenerational persistence, while regular wage work showed less persistence.
  • Relationship between husband’s earnings and probability of women’s employment:
    • In rural areas, as the husband's income increases, the decline in the wife's employment probability slows down.
    • In urban areas, there's a U-shaped pattern: the wife's employment probability falls until the husband's income reaches Rs. 40,000, then rises because higher-income husbands often have well-educated wives with access to good jobs.
  • Female workforce participation rates by education for 2021-22:
    • The presence of an employed mother-in-law significantly increases the likelihood of married women being employed, whereas an unemployed mother-in-law decreases this likelihood.

  • On the rising share of workers in the non-agricultural sector, compared to organised/regular wage employment sectors:
    • The share of non-agricultural sector workers increased from the 1980s, reaching 19.8% in 2021 (20.3% in the late 2010s). However, many shifted to casual wage labor or informal work instead of organized or salaried employment.
  • Unemployment in India is concentrated among its educated youth:
    • Unemployment rates are highest among graduates under 25, decreasing with lower education levels. As people age, employment probability rises.

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