Understanding and Addressing Emerging Challenges in India’s Rural Labour Market during COVID Era and Beyond

This study attempts to analyse the emerging challenges in the Indian rural labour market and its association with individual and household characteristics based on unit level Periodic Labour Force Survey (PLFS) data for 2019–20, 2020–21 and 2021–22. Empirical results reveal that a high proportion of females engaged as unpaid family workers, followed by self-employed own account workers and casual labour. Lower castes have higher participation rates, with Scheduled Castes (SCs) mostly involved in casual labour and Scheduled Tribes (STs) more engaged in unpaid family work. Rural females have been worse off economically after the pandemic, and ST households concentrated in lower income quintiles compared to other social groups. Regression analysis highlights the complexities and challenges of specific demographic groups in seeking employment and regular salaried employment. In rural areas, males, mostly middle-age individuals, belonging to smaller households, from ST and Other Backward Class (OBC) social groups, with lower levels of general and technical education are more likely to be employed. Therefore, females and the youth have been less likely to be employed. Findings provide an extensive picture on the intersectionality between occupational challenges and other forms of social and economic vulnerabilities, comparing the pre-COVID scenario with the more recent situation. The paper calls for immediate policy responses to address these challenges including a robust social security system, which is long due.