State of Working India 2023

September 21, 2023

A report by Azim Premji University titled “State of Working India 2023” highlights the impact of India’s economic slowdown from 2018-2020 and the subsequent Covid-19 pandemic on the labor market. The report reveals that the workforce has shifted more towards self-employment during this period, with women being disproportionately affected. The report also notes that while India has expanded the share of workers with regular wages, the majority of women still remain outside the workforce due to various challenges.

How has gender-based earnings disparity changed in India since 2004?

According to the report, salaried women workers in India now earn 76% of their male counterparts, compared to 70% in 2004, indicating a reduction in gender-based earnings disparities.

What factors contributed to the shift towards self-employment in India’s labor market?

The economic slowdown from 2018-2020 and the Covid-19 pandemic in 2020-2021 were identified as factors that led to a shift in the labor market towards self-employment.

How did the pandemic affect job creation in India, according to the report?

Since 2019, the pace of creating regular wage jobs has slowed. The report stated that the pandemic disrupted the pace of regular wage job creation, leading to higher growth in distress employment, which refers to less stable or informal work.

What challenges does the report highlight regarding women’s participation in the workforce in India?

The report notes that the majority of women in India still remain outside the workforce due to both supply-side and demand-side challenges. It suggests that despite improvements, the connection between economic growth and quality job creation remains weak for women in India.

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