What is Indian Labor Market?
Historical Background
Key Points
8 points- 1.
Formal vs. Informal Sector: A large proportion of the workforce (over 80%) is in the informal sector, lacking social security and formal contracts.
- 2.
Labor Force Participation Rate (LFPR): Measures the proportion of the working-age population that is employed or actively seeking employment, often lower for women in India.
- 3.
Unemployment and Underemployment: Persistent challenges, especially among youth and educated individuals, alongside disguised unemployment in agriculture.
- 4.
Demographic Dividend: India's large young population presents an opportunity, provided they are adequately skilled and employed.
- 5.
Skill Gap: Mismatch between the skills possessed by the workforce and those demanded by industries.
- 6.
Labor Mobility: Internal migration from rural to urban areas and across states for better opportunities.
- 7.
Impact of Globalization and Technological Change (e.g., automation, AI) on job creation and destruction.
- 8.
Labor Laws: A complex set of laws governing industrial relations, wages, social security, and working conditions, currently undergoing reforms.
Visual Insights
Indian Labor Market: Characteristics, Challenges & Policy Responses
This mind map provides a comprehensive overview of the Indian labor market, detailing its unique characteristics, persistent challenges, and the policy initiatives aimed at its improvement.
Indian Labor Market
- ●Key Characteristics
- ●Major Challenges
- ●Policy Responses
Recent Developments
5 developmentsImplementation of four Labor Codes to simplify and rationalize existing labor laws.
Growth of the gig economy and debates on extending social security benefits to gig workers.
Government initiatives like Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to address skill gaps.
Impact of the COVID-19 pandemic on migrant workers and employment patterns.
Focus on increasing women's labor force participation and creating gender-inclusive workplaces.