The puzzles and contradictions of the Indian labour market: What will the future of work look like?

Analysing the Indian labour market poses inherent challenges given the country’s size and
diversity. Rather than a case of “jobless growth”, India has experienced concentrated employment
growth, mainly in urban areas and for men. Women’s participation in the labour force has declined.
Some outcomes partly reflect India’s overall level of economic development. At the same time,
structural transformation in other countries, including those in the region, has led to greater
absorption of workers, particularly women, in manufacturing. Looking at the future of work, the
current situation is likely to prevail in the near future, unless policy interventions inject a structural
shift in trends. This means that workers will continue to leave agriculture and seek employment in
urban areas. But the ability of the manufacturing sector to engage workers will be constrained by the
capital and skill intensity of production, which will be further impacted by technological change. More
wage employment will be created but the challenge is to ensure these workers have access to social
security and other benefits. As women become better educated, their participation in the labour force
is likely to increase but many constraints keep them out of paid employment.