iStockAbout 40 per cent of salaried workers in India had to switch to casual wage work in the second quarter of 2020 due to the Covid pandemic, according to a World Bank report.
"In Q2 2020, many urban workers switched to casual wage work due to the pandemic and over 35 percent of urban self-employed workers transitioned to casual wage work, with males being affected more (39 percent) than females (25 percent)," said World Bank in the India Developement Report
Among salaried workers, about 40 percent had to switch to casual wage work, with both males and females being equally impacted, the report added.
It said that by Q2 2022, upward job transitions became more common as workers transitioned from being unemployed to casual wage workers – 10 percent of male unemployed workers in Q1 2022 became casual wage workers in Q2 2022. The report added that around 25 percent of female casual-wage workers moved upwards into selfemployment and salaried work while a similar share also moved out of the workforce.
According to World Bank, since 2020, the female worker population ratio (FWPR) has increased but has been driven by women engaged in unpaid work in rural areas.
India’s labor market, as per the report, has returned to stability since the pandemic, but "it is still unclear how good-quality job growth can be promoted and sustained over time".
Going forward, the rise of “gig-workers” (workers on a digital platform) and the contractual nature of their employment will be important indicators to track, it added.
The World Bank on Tuesday lowered its forecast for India's economic growth in the current fiscal year that started on April 1 to 6.3% from 6.6% as it expects higher borrowing costs to hurt consumption. The World Bank estimated last fiscal year's growth at 6.9%. It projected the current account deficit to narrow to 2.1% of gross domestic product for the current fiscal year from an estimated 3% in the previous year, on the back of robust service exports and a narrowing merchandise trade deficit.
"In Q2 2020, many urban workers switched to casual wage work due to the pandemic and over 35 percent of urban self-employed workers transitioned to casual wage work, with males being affected more (39 percent) than females (25 percent)," said World Bank in the India Developement Report
Among salaried workers, about 40 percent had to switch to casual wage work, with both males and females being equally impacted, the report added.
It said that by Q2 2022, upward job transitions became more common as workers transitioned from being unemployed to casual wage workers – 10 percent of male unemployed workers in Q1 2022 became casual wage workers in Q2 2022. The report added that around 25 percent of female casual-wage workers moved upwards into selfemployment and salaried work while a similar share also moved out of the workforce.
According to World Bank, since 2020, the female worker population ratio (FWPR) has increased but has been driven by women engaged in unpaid work in rural areas.
India’s labor market, as per the report, has returned to stability since the pandemic, but "it is still unclear how good-quality job growth can be promoted and sustained over time".
Going forward, the rise of “gig-workers” (workers on a digital platform) and the contractual nature of their employment will be important indicators to track, it added.
The World Bank on Tuesday lowered its forecast for India's economic growth in the current fiscal year that started on April 1 to 6.3% from 6.6% as it expects higher borrowing costs to hurt consumption. The World Bank estimated last fiscal year's growth at 6.9%. It projected the current account deficit to narrow to 2.1% of gross domestic product for the current fiscal year from an estimated 3% in the previous year, on the back of robust service exports and a narrowing merchandise trade deficit.
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