Indian Labour Force
Indian Labour Force – The people who work in India are from many different backgrounds and have many different skills and traits that set them apart from workers in other countries. Here are some of the key characteristics of Indian labour force:
- A large and growing workforce: India has a population of over 1.3 billion people, with around two-thirds of the population being of working age. This makes Indian labour force one of the largest in the world. Furthermore, the workforce is growing rapidly, with around 12 million people joining the labour force every year.
- Low-skilled labour force: While India has a growing number of highly skilled workers, the majority of the workforce is still low-skilled. According to the World Bank, over 80% of India’s workforce is employed in the informal sector, which typically consists of low-paying jobs with little job security or benefits. Many of these jobs require manual labour, such as farming, construction, and street vending.
- Informal sector dominance: India’s labour market is mostly made up of jobs in the informal sector, which employs about 91% of workers. This includes jobs in small and medium businesses, which are a big part of India’s economy. Even though the informal sector offers jobs, people who work there often don’t have job security, social security, or legal protections.
- Wage differentials: Wage differentials are a significant feature of the Indian labour market. According to the International Labour Organization, wages for skilled workers are around four times higher than wages for unskilled workers. Additionally, wages can vary significantly between different regions and industries. For example, workers in urban areas typically earn higher wages than those in rural areas.
- Gender disparities: Women are underrepresented in the workforce, with only around 20% of women participating in the labour force. People who do have jobs tend to work in low-paying fields like domestic work, farming, and textile manufacturing. Women also face various challenges, including discrimination and unequal pay. According to the World Economic Forum, India ranks 140th out of 156 countries in the Global Gender Gap Index.
- Labor laws and regulations: India has a complex system of labour laws and regulations, which can make it difficult for businesses to hire and fire workers. The Industrial Disputes Act, for example, requires businesses with 100 or more workers to seek government approval before laying off workers. While these regulations provide some protection for workers, they can also limit job creation and economic growth.
Overall, the Indian labour force is large and diverse, with a lot of low-skilled people working in the informal sector. The Indian labour market is also marked by differences in wages, differences between men and women, and complicated labour laws and rules.