Working Hours and Economic Impact in India

February 22, 2025

A working paper titled ‘Time Spent on Employment-Related Activities in India’ was recently released by the Economic Advisory Council to the Prime Minister. The analysis is based on the 2019 Time Use Survey conducted by the Ministry of Statistics and Programme Implementation.

Working Hours Across States

Gujarat, Punjab, Maharashtra, West Bengal, and Kerala are the top five states where over 70 hours of work per week is common. In Gujarat, 7.2% of the population works these long hours. In comparison, Bihar has only 1.1% of its workforce in this category. Nationally, 4.55% of the workforce exceeds 70 hours per week.

Economic Correlation with Working Hours

The report establishes a link between working hours and economic productivity. For larger states, a 1% increase in working hours correlates with a 3.7% rise in per capita Net State Domestic Product (NSDP). For smaller states and Union Territories, the increase is 1.8%. This suggests that longer working hours may contribute to higher economic output.

Variations in Urban and Rural Work Hours

Urban workers generally clock more hours than their rural counterparts. In urban areas, government employees in Kerala average 6 hours daily, ranking 34th nationally. Daman and Diu tops the urban working hours chart with nearly 9 hours a day. Rural employees in Kerala average just under 6 hours daily, slightly below the national average.

Sector-Specific Working Hours

Employees in the service sector tend to work longer than those in goods production. Regular wage earners also report longer hours compared to self-employed individuals. This disparity indicates the structural differences in employment types and their demands.

Concerns Over Extended Working Hours

Experts warn against the potential negative effects of extended working hours. The Economic Survey 2024-25 cautions that exceeding 60 hours weekly can lead to stress and burnout. High attrition rates and lower profit margins have been observed in companies promoting a 70+ hour work culture.

The Debate on Work Hours

Recent discussions have emerged regarding the appropriateness of a 70-hour workweek, sparked by comments from corporate leaders. Critics argue that such proposals ignore the negative implications for workers’ health and productivity. Developed nations are moving towards shorter workweeks, advocating for a balance between work and personal life.

« Previous Post Next Post »