The Labour Market Challenges Faced by India in 2020

India's labour force of more than 507 million people continues to face challenges in 2020 due to the pandemic, globalisation, large-scale unemployment, and crumbling infrastructure.

The COVID-19 pandemic has resulted in unprecedented job losses, with millions of workers either unemployed or on unpaid leave. In sectors such as manufacturing, hospitality, and tourism, retrenchment of workers has been so high that it has completely disrupted the existing labour market. This surge in unemployment has further led to the exacerbation of existing inequalities in the workforce.

The technological revolution has made it possible for massive edits to be done in just a few hours. Moreover, globalisation has exposed Indian industry to international competitors, leading to difficulties in meeting labour standards.

The lack of suitable infrastructure such as medical facilities, private and public transport and housing is also a major challenge. This has resulted in a lack of job opportunities, as businesses shift from rural to urban centres in search of better resources and infrastructure. In the absence of an adequate protective system, the workers face wage exploitation and insecurity.

Despite the ongoing pandemic, the government must take proactive steps to provide employment opportunities and strengthen the labour force. Essential services should be made accessible to workers, and flexible working arrangements should be introduced for those in the informal sector. Furthermore, infrastructure should be modernised and more effort should be put into improving digital and technical skills, as they are now more vital for employment opportunities.

By investing in these areas, India will be better equipped to provide its citizens with protected and rewarding employment and to contribute to the nation’s economic growth.

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