India’s employment challenge isn’t just about creating more jobs, but about making them secure

A recent Reuters poll of policy experts confirmed that despite commendable economic growth – over 8% in the last fiscal year – job creation remains India‘s top economic challenge. The real issue, however, goes beyond unemployment figures. The challenge is the quality of jobs – what do they pay? How stable are they? Do they align with workers’ skills, aspirations and life goals?

According to PRICE’s ICE 360° survey, 40% of chief wage earners are dissatisfied with their occupation. This isn’t due to job mismatch or long commutes to their offices. The survey reveals that 74% of these dissatisfied workers cite insufficient income as the main reason. Another 14% point to irregular or uncertain earnings, and 6% mention a lack of social security. These concerns underscore that many Indian workers struggle to meet their basic financial needs – even when fully employed.

Alarmingly, this isn’t just a concern for those who slog in the informal sector. Even among salaried employees, only 35% are covered by PF schemes. Coverage for pension, gratuity, health insurance and maternity leave remains below 25%. A significant share of India’s formal workforce still lacks adequate protections and benefits – undermining household financial stability and deepening long-term vulnerabilities.

All of these point to a clear conclusion: India’s employment challenge isn’t just about creating more jobs, but about making them secure, fairly paid and tied to long-term economic stability. Too many jobs today are fragile and offer little scope for upward mobility or growth.

To address this, India must redefine what success in employment policy looks like. Instead of focusing solely on job counts and GDP growth, we must also measure satisfaction, wage adequacy and access to social protections. The goal should be to build an economy in which employment supports not just survival but dignity and progress as well.

Modernise skilling & education: India must move away from a degree-focused model and toward practical, flexible, industry-aligned training. Dual vocational programmes, employer-led apprenticeships and modular digital certifications need to become more widespread and responsive to local job market needs. These efforts should not stop at job entry but continue as part of a culture of lifelong learning.

Support high-employment sectors: Logistics, RE, agro-processing, tourism and care services can absorb large numbers of workers. Policy incentives for these sectors should not just reward capital investment or output, but also factor in job creation, fair pay and the provision of benefits.

Invest in employees: Businesses should recognise that investing in employees is not a cost but a foundation for sustainable growth. This means offering fair wages, ensuring job security and extending social protections not only to core staff but also to contract and gig workers. Companies that value long-term workforce development will also benefit from more motivated, loyal and productive employees.

Local policies: State governments must be empowered to tailor employment policies to local realities. Labour markets differ vastly from state to state and city to city in this country. A centrally supported jobs innovation fund could reward states that improve employment outcomes, particularly in terms of formalisation, wage growth, and inclusion of women and youth.

Improve labour market data: India’s current systems fail to capture the breadth of informal and gig work, leaving policymakers with an incomplete picture. Building a comprehensive labour information system – based on Aadhaar-linked job histories, earnings records and benefit coverage – can help craft better, data-driven employment policies.

India’s ambition to become a global manufacturing and digital powerhouse cannot be fulfilled unless the workforce is supported in a meaningful way. Competitive economies are not defined only by innovation and infrastructure, but also by how they treat their workers. Valuing the contributions of employees through decent pay, career mobility and workplace protections is essential for long-term progress.

The broader challenge is to ensure that economic growth translates into livelihoods that are not only available but worth having. Unless we fix this imbalance between expansion and equity, we risk eroding public trust and losing the energy of a generation that wants to contribute but finds few rewarding paths.

India’s growth story is real and impressive. But it must become more inclusive and worker-centric to be truly sustainable. The real jobs crisis is no longer just about employment gaps – it is about the quality of work and whether it brings dignity and progress. As we reimagine India’s employment model, our focus must be not only on creating opportunities but also on building futures – futures in which every worker has a fair chance to thrive.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)



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