A vast majority of Indians earn the entirety of their incomes through labour as opposed to ownership of capital or land. Further, about 90% of the working Indian population earns its livelihood through informal employment that is characterised by little or no job security, no employment benefits, no social protection, and lower earnings. The informally employed are primarily concentrated among casual labourers and the self-employed, but exist even in some segments of those who are classified as regular wage or salaried workers.
Therefore, whatever is happening to the GDP growth rate — which tends to occupy the headlines concerning the economy — or how that translates into improvements in the standards of living of the masses, in the end, depends on what is happening to the labour market — are new jobs being created? Are better jobs being created? Are wages going up?
