UPSC Mains
GS Paper III
Economy
India’s Decent Work Deficit and the Decent Work Index
Unemployment fell from 6.1% to 3.2%, but a PLFS-based study finds the Decent Work Index rose only from 0.247 to 0.302, so job quality remains poor
UNEMPLOYMENT RATE
6.1% (2017-18) to 3.2% (2023-24)
DECENT WORK INDEX
0.247 to 0.302
INFORMAL WORKFORCE
Nearly 90%
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Why in News
Even as India’s unemployment rate fell from 6.1% in 2017-18 to 3.2% in 2023-24, a study of Periodic Labour Force Survey (PLFS) data finds that the quality of jobs remains poor. Its Decent Work Index rose only from 0.247 to 0.302.
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More on the News
- The study built a multidimensional Decent Work Index (DWI) from three parts: employment status, employment opportunity and social security, across five industries: agriculture, manufacturing, construction, wholesale and retail, and transport.
- Overall result: The DWI rose from 0.247 (2017-18) to 0.302 (2023-24), a gain but from a very low base.
- Uneven gains: Progress varies by sector, region, gender and caste.
- Women’s participation in the workforce has risen for the first time in decades, but job quality has not kept pace.
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What is decent work?
- The International Labour Organization (ILO) defines decent work as employment that offers fair income, workplace rights, social security and dignity.
- ILO’s four pillars: Employment creation, social protection, rights at work and social dialogue.
- Under the Global goal the Sustainable Development Goal 8 calls for decent work for all.
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What does the study find?
- Best gains: Manufacturing (DWI 0.324 to 0.411), helped by formalisation and digitalisation, and transport (0.285 to 0.35), helped by urban logistics and app-based platform work.
- Weakest sector: Agriculture, which employs the largest share of workers, rose only from 0.211 to 0.267. Most workers are self-employed or unpaid family workers without stable income.
- Construction and retail: Dependence on casual work, subcontracting chains and insecure arrangements.
- Informality: Nearly 90% of the workforce is informal, a share that has risen since 2019 (India Employment Report 2024, ILO and Institute for Human Development).
- Caste and gender: Women from Scheduled Tribes and Other Backward Classes saw job quality decline even as men’s improved, and the penalty for being female and marginalised has grown since COVID-19.
- Regions: Goa, Keralam, Tamil Nadu and Haryana do better. Bihar, Jharkhand and Uttar Pradesh lag.
- Social security: Even in improving sectors, many workers lack written contracts, paid leave, provident fund or insurance.
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Significance
- Growth: Workers without social security spend and save less and are vulnerable to shocks, which weakens demand.
- Productivity and revenue: Informality depresses productivity, narrows the tax base and raises inequality.
- Viksit Bharat 2047: A developed nation cannot rest on insecure, low-paid work.
- Measurement: India needs to judge labour markets by job quality, not only by the unemployment rate.
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Challenges
- Rising informality: Through contractualisation, outsourcing and gig work.
- Weak enforcement: Welfare schemes exist on paper but have implementation gaps.
- Intersecting disadvantage: Caste, gender and region compound each other.
- Labour Codes: The four Labour Codes of 2025 promised simpler rules and wider protection, but implementation is partial, and critics say compliance has eased for business while worker protection may have weakened.
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Way Forward
Portable social protection
For gig, platform, self-employed and informal workers. Registration on e-Shram alone does not give protection.
Formalisation linked to working conditions
Firms that get tax incentives or subsidies should offer written contracts, paid leave and social security contributions.
Intersectional measures
Childcare, safe transport, skills training and protection against workplace discrimination for women from marginalised groups.
Worker-first labour reform
Not only reform to ease the cost of doing business.
Conclusion: Counting jobs is not enough. India must shift to a job-quality approach, so that growth gives workers security and dignity.
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Source: The Hindu

