# Op-ed: Unemployment has fallen, but India's jobs remain far from 'decent work'

URL: https://upsc.help/current-affairs/2026-11-02/decent-work-index-deficit-oped/
Date: 2 November 2026 (2026-11-02)
Source: The Hindu, Page 6
UPSC papers: GS3, GS1, GS2
Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing.

**In one line:** An article in The Hindu argues that India's falling unemployment rate hides weak job quality, shown by a Decent Work Index that rose only from 0.247 to 0.302.

An article in The Hindu on 2 November 2026 argues that India's falling unemployment rate hides a deficit of "decent work". Official Periodic Labour Force Survey (PLFS) data show that unemployment among people aged 15 and above fell from 6.0% in 2017-18 to 3.2% in 2023-24, and the female labour force participation rate rose from 23.3% to 41.7%. The writers say these numbers count jobs but say little about their quality, and that it is time to measure how secure and protected work actually is.

Using PLFS data, the writers built a Decent Work Index (DWI) from three dimensions: employment status, employment opportunity and social security. Across five industries (agriculture, manufacturing, construction, wholesale and retail trade, and transport), the index rose only from 0.247 to 0.302. Manufacturing improved most, from 0.324 to 0.411, and transport from 0.285 to 0.35. Agriculture, the largest employer, rose from 0.211 to 0.267. The writers report that job quality for women from marginalised social groups declined even as men's improved, and that Goa, Kerala, Tamil Nadu and Haryana did better while Bihar, Jharkhand and Uttar Pradesh lagged.

The article cites the India Employment Report 2024 of the ILO and the Institute for Human Development, which found nearly 90% of workers informally employed. It notes that the four Labour Codes, in force since 21 November 2025, aimed at simpler rules and wider protection, but implementation is partial and critics say compliance has eased for business while worker protection may have weakened. The writers propose portable social protection for gig, platform and informal workers beyond e-Shram registration, linking tax incentives to written contracts, paid leave and social security, and childcare and safe transport for women.

## Prelims facts

- PLFS unemployment (usual status, 15+) fell from 6.0% in 2017-18 to 3.2% in 2023-24; female LFPR rose from 23.3% to 41.7%.
- A Decent Work Index built from PLFS data rose only from 0.247 to 0.302 across five industries.
- Agriculture, the largest employer, had the lowest index (0.211 to 0.267); manufacturing improved most (0.324 to 0.411).
- The India Employment Report 2024 (ILO and IHD) found nearly 90% of workers informally employed.
- The four Labour Codes took effect on 21 November 2025, replacing 29 central labour laws.

## Quick recall

- **PLFS unemployment rate (usual status, 15+) in 2023-24?** 3.2%, down from 6.0% in 2017-18.
- **Female labour force participation rate (PLFS, 15+), 2017-18 and 2023-24?** 23.3% and 41.7%.
- **Three dimensions of the Decent Work Index in The Hindu article?** Employment status, employment opportunity and social security.
- **Overall Decent Work Index change reported?** From 0.247 to 0.302.
- **Which sector had the lowest Decent Work Index?** Agriculture, rising only from 0.211 to 0.267.
- **Who published the India Employment Report 2024?** The ILO and the Institute for Human Development (IHD).
- **When did the four Labour Codes take effect?** 21 November 2025, replacing 29 central labour laws.
- **Aggregator contribution under the Code on Social Security, 2020?** 1% to 2% of annual turnover, capped at 5% of the amount paid to gig and platform workers.

## Prelims practice question

With reference to the Periodic Labour Force Survey (PLFS), consider the following statements:
1. It is conducted by the National Statistics Office.
2. Its annual reports use the usual status approach.
3. According to PLFS, the female labour force participation rate (15 years and above) was higher in 2023-24 than in 2017-18.
Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d) 1, 2 and 3. All three are correct. PLFS is run by the NSO under MoSPI; annual estimates use usual status; female LFPR rose from 23.3% in 2017-18 to 41.7% in 2023-24.

## UPSC previous-year questions this connects to

- UPSC Mains 2016, GS3: How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (https://upsc.help/pyq/q098-globalization-has-led-reduction-employment-formal-sector/)
  How to use this story in the answer: Use the decent work evidence to argue that informalisation is detrimental: jobs are being added, but without contracts, social security or improving quality.
- UPSC Mains 2024, GS3: Discuss the merits and demerits of the four 'Labour Codes' in the context of labour market reforms in India. What has been the progress so far in this regard? (https://upsc.help/pyq/q097-merits-demerits-four-labour-codes-context-labour/)
  How to use this story in the answer: Use for the demerits and progress parts: the Codes are in force, but critics say protection has lagged behind ease of compliance.
- UPSC Mains 2022, GS2: Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (https://upsc.help/pyq/q214-besides-welfare-schemes-india-needs-deft-management/)

## Mains practice question

Falling unemployment in India has not been matched by an improvement in the quality of work. Examine with reference to informality and the experience of women, and suggest measures to promote decent work. (250 words)

### Model answer

PLFS data show unemployment falling from 6.0% in 2017-18 to 3.2% in 2023-24, but a Decent Work Index reported in The Hindu (2 November 2026) rose only from 0.247 to 0.302, showing that job quality lags job quantity.

## Why quality lags
- **Informality:** the India Employment Report 2024 (ILO and IHD) found nearly 90% of workers informally employed.
- **Sectoral gaps:** agriculture, the largest employer, scored 0.267; manufacturing 0.411.
- **Missing protection:** many workers lack written contracts, paid leave, provident fund or insurance.
- **New forms of work:** contractualisation, outsourcing and gig work add jobs without security.

## The experience of women
- Female labour force participation rose from 23.3% to 41.7% (PLFS).
- The index shows job quality falling for women from marginalised social groups even as men's improved.
- Regional gaps: Goa, Kerala, Tamil Nadu and Haryana fare better; Bihar, Jharkhand and Uttar Pradesh lag.

## Measures for decent work
- **Implement the Code on Social Security, 2020** fully, including aggregator contributions of 1% to 2% of turnover for gig workers.
- **Portable benefits** that follow workers across jobs, going beyond e-Shram registration.
- **Conditional incentives:** link subsidies and tax breaks to contracts, paid leave and social security.
- **Women-specific support:** childcare, safe transport and protection from workplace discrimination.
- **Better metrics:** track job quality alongside the unemployment rate, in line with SDG 8 and the ILO's Decent Work Agenda.

## Conclusion
For Viksit Bharat, India must move from counting jobs to building decent ones; social protection and job quality must become targets in their own right.

## The basics

## Why this matters
India's unemployment rate has fallen to about 3%, and women's participation in work has risen sharply. An article in The Hindu on 2 November 2026 argues that these headline numbers hide poor job quality. For UPSC, this is the difference between counting jobs and measuring decent work, a theme that runs through GS1 (women, poverty), GS2 (welfare) and GS3 (employment).

## What official data show
The Periodic Labour Force Survey (PLFS), launched by the National Sample Survey Office in April 2017, is India's main source of jobs data. On the usual status measure for people aged 15 and above, unemployment fell from 6.0% in 2017-18 to 3.2% in 2023-24. The female labour force participation rate rose from 23.3% to 41.7% over the same years.

## Measuring decent work
The writers built a Decent Work Index (DWI) from PLFS data, combining three dimensions: employment status, employment opportunity and social security. A score near 0 means poor quality; a score near 1 means good quality. They studied five industries: agriculture, manufacturing, construction, wholesale and retail trade, and transport.

## What the index found
The overall DWI rose only from 0.247 to 0.302. Manufacturing improved most, from 0.324 to 0.411, which the writers link to formalisation and digitalisation. Transport rose from 0.285 to 0.35. Agriculture, which employs the most people, stayed weakest, rising from 0.211 to 0.267.

## Who is left behind
The writers report that job quality for women from marginalised social groups fell even as men's improved. Goa, Kerala, Tamil Nadu and Haryana did better; Bihar, Jharkhand and Uttar Pradesh lagged. Nearly 90% of workers are informally employed, according to the India Employment Report 2024. Read on: ILO's Decent Work Agenda, Periodic Labour Force Survey and Code on Social Security, 2020.

## Sources

- https://striveedgeias.in/indias-decent-work-deficit-and-the-decent-work-index/
- https://www.legacyias.com/the-hindu-upsc-news-analysis-for-02-november-2026/
- https://mospi.gov.in/sites/default/files/press_release/Press_note_AR_PLFS_2023_24_22092024.pdf
- https://vajiramandravi.com/current-affairs/india-employment-report-2024/
- https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/alerts-hub/2025/11/new-labour-codes-implemented-across-the-country-effective-21-november-2025.pdf