Employment: Growth, Informalisation and Other Issues
Status and sectors of workers
Place a worker in the right status and sector.
Workers can be grouped by their status, that is, how they work and are paid:
- Self-employed: they own and operate an enterprise to earn their living, such as a farmer on his own land, a tailor working from home, or a doctor with a private clinic. About 58 per cent of India's workers are self-employed.
- Casual wage labourers: they are hired as and when needed, and paid for the work done, often by the day. They have no job security. About 20 per cent.
- Regular salaried employees: they work for an employer and are paid regularly, every month. About 22 per cent.
Self-employment is the main source of work for both men (54 per cent) and women (67 per cent). For women, casual work is the second most important source.
There is a big rural-urban difference. In rural areas, 65 per cent are self-employed (mostly farmers). In urban areas, the largest group (48 per cent) are regular salaried employees.
Workers can also be grouped by sector:
- Primary: agriculture, mining and quarrying.
- Secondary: manufacturing, electricity, gas and water supply, and construction.
- Tertiary (services): trade, transport and storage, and other services.
In 2023-24, 46.1 per cent of workers were in the primary sector, 24.1 in the secondary and 29.8 in services. In rural India, 59.8 per cent worked in the primary sector; in urban India, 60.9 per cent worked in services.
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