LABOUR MARKET TRANSFORMATION, INFORMAL EMPLOYMENT AND SOCIAL SECURITY INCLUSION IN INDIA: EVIDENCE FROM PLFS, CENSUS AND E-SHRAM DATA
DOI:
https://doi.org/10.69980/5vw6ft22Keywords:
labour market, informal employment, social security, PLFS, Census 2011, e-Shram, India, unorganised workers, female labour force participation, decent workAbstract
India’s labour market is undergoing a complex structural transformation characterized by rising labour force participation, persistent informal employment, and expanding social security initiatives. This study examines labour market participation, informal employment, and social security inclusion in India using secondary data from the Periodic Labour Force Survey (PLFS) 2017–18 to 2023–24, Census 2011 worker classification data, e-Shram administrative records, and supplementary evidence from the Annual Survey of Unincorporated Sector Enterprises (ASUSE). The study critically evaluates whether improvements in labour market indicators necessarily reflect improvements in employment quality and workforce security.
The findings reveal that the all-India Labour Force Participation Rate (LFPR) increased from 49.8% in 2017–18 to 60.1% in 2023–24, while female LFPR rose substantially from 23.3% to 41.7%. However, the study finds that a large proportion of employment growth remains concentrated in informal, low-productivity, and socially unprotected work. Census-based evidence indicates that nearly 47.5% of rural female workers were classified as marginal workers, reflecting significant employment intermittency and workforce vulnerability. Informal employment continues to dominate the Indian labour market, accounting for a major share of self-employment, unpaid family work, and casual labour.
The paper further evaluates India’s e-Shram initiative through the identification–coverage–adequacy–utilisation framework for social protection. While the platform has achieved large-scale worker registration and administrative visibility for informal workers, substantial gaps remain regarding benefit utilisation, portability, adequacy, and independent impact evaluation. The study argues that labour market policy should move beyond headline participation and unemployment indicators toward a stronger focus on employment quality, workforce formalisation, social security accessibility, and sustainable labour governance.
The study contributes to business and management literature by integrating labour economics, workforce governance, employment sustainability, and social protection analysis within the context of India’s evolving labour market structure. The findings offer practical implications for policymakers, labour administrators, workforce planners, and social protection institutions seeking to improve employment quality, workforce resilience, and inclusive economic development.
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