EMPLOYMENT Working Paper No. 254

Informal Employment Trends in the Indian Economy: Persistent informality, but growing positive development

This paper documents favourable labour market developments in recent years along with the staggering trends in informality. In this respect, it examines a diverging trend between the structure of output and the structure of employment in the last decade.

This paper is organized as follows:

Section 1: Explains the very high share of informal workers in India’s workforce.

Section 2: Attempts to explain the employment trends in the labour market: men or women; the self-employed, casual or regular workers; the organized or the unorganized segment workers, especially in the non-agricultural sectors. But more importantly, it notes that a number of positive developments have occurred in India’s labour market, which have tended to mitigate the widespread and chronic effects of informality.

Section 3: Concludes.