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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.

Who owns, who is paid regularly, who is paid by the day.
Who owns, who is paid regularly, who is paid by the day.

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