Complaint Against ILO
Context:
India, a founding member of the International Labour Organization (ILO), is likely to raise a complaint against the ILO regarding its India Employment Report, 2024.
Relevance:
GS-02 (Government policies and interventions)
Key highlights:
- Report Findings: The report, released in March and prepared by the ILO and the Institute of Human Development (IHD), states that India’s youth account for almost 83% of the unemployed workforce. Additionally, the share of youngsters with secondary or higher education among total unemployed youth has nearly doubled from 35.2% in 2000 to 65.7% in 2022.
- Disputed Data: A Union Labour Ministry official criticized the ILO’s model for assessing India’s employment situation, stating it was unsuitable. The official mentioned that India has its own assessment of the situation, which differs from the ILO’s findings.
- Changing Employment Concept: The official highlighted that the concept of employment in India is changing, with more people becoming entrepreneurs and formal employment increasing, evidenced by growing subscriptions in the Employees’ Provident Fund Organisation and the Employees’ State Insurance Corporation.
- Government’s Data Preference: The Union Labour Ministry has previously expressed doubts about data from private agencies like the Centre for Monitoring Indian Economy (CMIE), insisting that the Periodic Labour Force Surveys provide better data on India’s employment situation.
- Government’s Employment Efforts: Minister of State for Labour Shobha Karandlaje stated in the Lok Sabha that the unemployment rate for youth in the country is declining. She emphasized that employment generation and improving employability are government priorities, with various steps taken to generate employment.
Key Findings of the India Employment Report (IER) 2024:
- Overall Employment Conditions: Despite improvements in labor force participation and employment rates, employment conditions in India remain poor.
- Challenges Faced:
- Stagnant or declining wages.
- Increased self-employment among women.
- Higher proportion of unpaid family work among youth.
- Youth Unemployment:
- India’s youth account for nearly 83% of the unemployed workforce.
- 65.7% of unemployed youth have secondary or higher education.
- Surge in youth employment and underemployment between 2000 and 2019, particularly affecting educated youth.
- Labor Force Metrics:
- Labor Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) deteriorated between 2000 and 2018 but showed improvement after 2019 during economic distress periods.
- Job Market Challenges:
- Dominance of informal work.
- Lack of necessary skills among the youth.
- Low wages, with many workers not receiving minimum wages.
- Rise in Gig and Platform Work:
- Rapid increase in digitally mediated gig and platform work.
- Contributes to the informal sector without adequate social security provisions.
- Migration Trends:
- Expected increase in migration rates, particularly from eastern to western regions, exacerbating regional disparities.
- Gender Gap in Labor Market:
- Substantial gender gap with low female labor force participation.
- Unemployment challenges among educated women.
- Policy Recommendations:
- Integrating employment creation into macroeconomic policies.
- Supporting small enterprises.
- Improving agricultural productivity.
- Strategies for Enhancing Job Quality:
- Investing in sectors like healthcare and the digital economy.
- Fostering inclusive urbanization policies.
- Addressing Labor Market Inequalities:
- Promoting women’s participation.
- Skills training for disadvantaged groups.
- Combating discrimination.
Summary of the India Employment Report (IER) 2024:
- The IER 2024 highlights the divergent trends in employment and income between rural and urban areas.
- Relatively higher unemployment rate in urban areas despite higher average monthly earnings.
- Emphasizes the need for further investigation into the implications of this disparity for the urban poor.
- Calls for measures to promote economic mobility and decent work in urban India.
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