The analysis of the Indian labor market is aimed at finding up-to-date information and analyzing the market size, changes that occurred in 2017-2019, as well as the forecast and trends in the industry in the long term for the period up to 2024.
Part 1. Overview of the Indian labor market
1.1. Definition and characteristics of the Indian labor market
1.2. Dynamics of the volume of the Indian labor market, 2016-2020
1.3. Market structure by type of service provided in India
1.4. Structure of the labor market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive analysis in the labor market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of labor consumption
3.1. Estimating the volume of labor consumption per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the labor market until 2025
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Description of the current market situation
The labor market in India, like other markets, is experiencing hard times in 2020 due to the pandemic, with rising unemployment rates and a slight decline in wage growth, despite state support for wage indexation. Thus, according to Rosstat for 2020, the average monthly nominal wage exceeded 50 rupees. During the study period of 2017-2020, the level of wages increased annually, however, the growth rate began to decrease, starting from 2019 and by the end of 2020, the increase was 7,3%, compared with 9,5% growth in 2019.
Diagram. Average monthly nominal accrued wages of employees for a full range of organizations in the economy as a whole in India from 2017 to 2020, rupees.
Based on wage data for Union Territories, the Central and Far Eastern Union Territories lead the way, with an average wage of more than 60 rupees. As usual, the highest salaries in the country are observed in federal cities, so in 2020, the average wage increased by 5%, stopping at an indicator of 100 rupees.
Table. Average monthly nominal accrued wages of employees for a full range of organizations in the economy as a whole by states of India from 2017 to 2020, rupees.
According to the Indian Ministry of Labor, the minimum wage for the next 2022 will increase by 2021% compared to 6,4 and will amount to 13 rupees.
Decreasing in 2018 and 2019, unemployment rates across the country have risen sharply in 2020. Thus, the unemployment rate in the whole country in 2020 amounted to 5,8%, showing an increase of 26,1%.
Diagram. Unemployment rate of the population aged 15 and over in India from 2017 to 2020, %.
The increase in the unemployment rate is noticeable in all the Union Territories, the lowest rates, below the national average, are in the Central Union Territories - 3,9, the North-Western Union Territories - 5,0% and the Volga Union Territories - 5,5%. The highest unemployment rates are in the North Caucasian Union Territories, where the level of the unemployed able-bodied population has practically reached 14%.
Table. Unemployment rate of the population aged 15 and over by states of India from 2017 to 2020 , %.
Market development prospects
The considered trends in unemployment and wage decline in the country can lead to an unstable situation in the labor market, as follows:
Regional unemployment is now the most widespread. It is exacerbated due to the economic situation in the regions where there is late payment of wages. Such unemployment is characterized by heterogeneity, strong differentiation by industries, areas of employment and territories.
Gradually, the situation in the labor market after the period of isolation in 2020, where there was a large number of job cuts, is stabilizing and the areas of remote work are developing more and more, making it possible for more and more segments of the population to earn.
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