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

Author

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  • Shuchi Benara Misra

    (Symbiosis School of Economics, Symbiosis International (Deemed University))

  • Partha Pratim Sahu

    (National Institute of Rural Development & Panchayati Raj)

Abstract

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.

Suggested Citation

  • Shuchi Benara Misra & Partha Pratim Sahu, 2025. "Understanding and Addressing Emerging Challenges in India’s Rural Labour Market during COVID Era and Beyond," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 68(1), pages 183-201, March.
    • Handle: RePEc:spr:ijlaec:v:68:y:2025:i:1:d:10.1007_s41027-025-00559-z
    DOI: 10.1007/s41027-025-00559-z
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    References listed on IDEAS

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    1. Nomita P. Kumar & Achala Srivastava, 2021. "Measuring the Employment Vulnerability Among Female Workers in Uttar Pradesh," Indian Journal of Human Development, , vol. 15(2), pages 307-322, August.
    2. Ajit Jha, 2021. "Vulnerability of Construction Workers During COVID-19: Tracking Welfare Responses and Challenges," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1043-1067, December.
    3. Bina Agarwal, 2022. "Imperatives of recognising the complexities: gendered impacts and responses to COVID-19 in India," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(1), pages 31-53, April.
    4. Anindita Sengupta, 2023. "Effect of COVID-19 Pandemic on Employment and Earning in Urban India during the First Three Months of Pandemic Period: An Analysis with Unit-Level Data of Periodic Labour Force Survey," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 283-298, March.
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