Employment in India is growing, but regular salaried workers have not seen their earnings keep up with inflation over the past seven years.
According to a PTI report, which quoted a NITI Aayog expert, Arvind Virmani, data from the Periodic Labour Force Survey (PLFS) shows a clear rise in the worker-population ratio. In simple terms, job opportunities are increasing at a faster rate than population growth.
While occasional fluctuations occur, the overall trend suggests more jobs are emerging. The latest PLFS Annual Report (2023-24) states that the worker-population ratio for people of all ages has increased from 34.7% in 2017-18 to 43.7% in 2023-24.
However, wages present a real challenge. Casual workers – those without formal job contracts – have seen their real incomes rise, according to PLFS data. But regular salaried workers have struggled, as their earnings have failed to keep pace with inflation.
Virmani believes a lack of skills is the main reason behind this wage stagnation. He points out that India is not producing enough skilled workers. Comparing global trends, he argues that improving skills leads to higher productivity and, in turn, better wages. While the central government has been taking steps in this direction, he suggests that states and districts need to intensify their efforts as well.
This need for skill development goes beyond just high-tech jobs like AI and engineering. Many students drop out of school before completing their education, and they need skill-based training tailored to their situation. Virmani stresses the importance of improving skills across all education levels, from basic to advanced, and for all kinds of jobs.
India has a unique opportunity due to global demographic shifts. But to make the most of it, the country must improve the quality of education and skill training, he warns. The link between jobs and skills is straightforward – better skills make it easier to land better jobs. Without this, India may struggle to move toward higher income levels.
Virmani also highlights the need to strengthen the supply chain. Addressing this, along with skill development, could help India maximise its economic potential.
"For a developed India, there is a need for improvement everywhere. We should see the opportunity and use it... We need to take advantage of the opportunities that we have at the level of global demographics. For this, improving the quality of education along with teaching and training is important. Attention needs to be paid here so that we can reach a higher income level. Similarly, there is a supply chain, which needs to be worked upon," Virmani said in the media report.
"Job and skill are two sides of the same coin. If you have skill then it becomes easier to get a job. This needs to be understood,” he added
