The second edition of ICRIER’s India Jobs and Occupations Tracker (I-JOT) examines key urban labour market indicators from India’s Periodic Labour Force Survey (PLFS) for the July–September 2024 quarter (Q3:2024). The key findings are:
1. Record high participation: The labour market remained robust with the labor force participation rate and the worker population ratio in urban India reaching an all-time high in Q3:2024.
2. PLFS tracks the real economy well. There is a positive association between changes in labor market conditions and change in non-farm output. This finding suggests that the PLFS is effective in capturing the dynamics of the real economy.
3. Only 50% of Urban Workers receive a regular salary, though this share is rising. Out of every 10 urban employees, 5 are salaried employees, 4 are self-employed and 1 is a casual labourer. There was a notable shift towards salaried employment for both male and female workers.
4. Considerable diversity in labour market conditions. Out of the 22 States/UTs tracked, the labour force participation rate and worker population ratio increased in 15 states, while declining in 7. The unemployment rate fell in 11 states and increased in the rest 11.
5. Stagnant real wages. Nominal wage growth has barely kept pace with the inflation rate, implying that real wages have been flat over the past six years. Despite significant difference in the level of nominal wages across states, there is no sign of convergence – indicating perhaps the limited level of mobility of workers across state borders.
