Employment and Income Dynamics in Urban Slums: Insights from the India Employment Report 2024

The India Employment Report (IER) 2024, by the Institute for Human Development and the International Labour Organization, presents a nuanced analysis of employment and income trends across India, highlighting significant disparities between rural and urban areas. This study gains particular relevance against the backdrop of a 5.4% average real economic growth from 2015-16 to 2022-23, raising questions about the equitable distribution of economic benefits.

Key Findings:

• Urban vs. Rural Employment Trends: Urban areas show a higher unemployment rate of 4.8% compared to 1.5% in rural areas, despite urban areas offering higher wages.

• Migration Patterns: There's a noted decline in male migration for economic opportunities, suggesting a potential decrease in the attractiveness of urban economic mobility.

• Income and Employment in Slums: A detailed survey in Kolkata's slums reveals a stagnant or declining income trend despite a shift towards casual and petty business employment.

Economic Mobility and Decent Work:

• The pursuit of higher income in urban settings has historically driven rural-urban migration. However, the trend of migrating to urban slums, rather than formal settlements, poses challenges for achieving economic mobility and accessing decent work.

• Shift in Occupation: There’s a noticeable rise in casual labor and petty business within slums, often without corresponding income increases, indicating a need for more sustainable employment solutions.

Income Disparities and Trends:

• Decrease in Average Monthly Income: Real incomes have generally declined across various occupations in slums, with the most significant drops observed in construction work and small business ownership.

• Contrast with IER 2024 Findings: Similar to urban slums, the broader urban workforce has seen a rise in self-employment but with declining real wages, reflecting the wider economic transition and its impact on the urban poor.

Implications for Policy and Support:

• Need for Public Support: Given the rising casual work and the burgeoning number of low-earning petty business owners in urban slums, there is a crucial need for targeted public support to ensure access to affordable food and meaningful employment opportunities.

• Addressing Rural Non-Farm Employment: With agriculture showing slow growth and negative employment trends, focusing on rural non-farm employment could be vital for enhancing rural economic stability and reducing the necessity for urban migration.

Additional Insights:

• Gender Workforce Participation: While the overall female workforce participation has marginally increased, slum areas have seen a decline, indicating disparities in employment opportunities for women in urban poverty zones.

• Inequality Reductions: The study observes a narrowing income gap within slums, though this coincides with a general decline in income levels, highlighting complex dynamics of inequality and poverty in urban settings.

Keywords to Remember:

• Casual Work: Employment characterized by a lack of job security and social benefits.

• Economic Mobility: The ability of an individual or family to improve their economic status, typically measured in income.

• Gross Value Added (GVA): A measure of the value of goods and services produced in an area, sector, or industry.

Reason it's important : Turning the spotlight on the urban poor

Published in : The Hindu

Date appeared in newspaper : 04 April 2024

Link to the article (might require a paid subscription) : https://www.thehindu.com/todays-paper/2024-04-04/th_international/articleGOLCKGKJN-6349727.ece