Context:
India’s new Labour Codes, consolidating 29 central laws and effective from November 2025, aim to modernize labor regulation, yet youth unemployment and informality remain significant concerns.
Key Highlights:
- Youth Employment Situation
- Median age: Below 30 years (2024).
- Youth unemployment: 10.2% (PLFS 2023–24).
- Higher urban unemployment and gender disparities.
- High concentration in informal employment.
- Reform Measures
- Consolidation into 4 Labour Codes.
- Code on Social Security extends coverage to:
- Unorganized workers
- Gig and platform workers
- Mandatory appointment letters.
- Parity in wages for fixed-term contract workers.
- Reduced hiring friction under Industrial Relations Code.
- Persistent Gaps
- Size-based enterprise definitions exclude many workers.
- Discretionary language weakens gig worker protections.
- Low worker registration.
Relevant Prelims Points:
- Labour Codes: Wage Code, Industrial Relations Code, Social Security Code, Occupational Safety Code.
- PLFS: Periodic Labour Force Survey providing employment data.
- Gig Economy: Platform-based short-term employment model.
- Informal sector accounts for majority of employment in India.
Relevant Mains Points:
- Demographic Dividend vs Employment Crisis
- Youth bulge without adequate job creation.
- Skill mismatch and low female LFPR.
- Formalisation Goals
- Improved compliance.
- Universalization of minimum wages.
- Expansion of social protection.
- Challenges
- Enforcement capacity constraints.
- Informal sector dominance.
- Social security financing sustainability.
- Social Justice Dimensions
- Vulnerability of gig workers.
- Gender inequality in workforce participation.
Way Forward
- Strengthen labour data systems.
- Proactive registration drives for gig workers.
- Skill development aligned with industry demand.
- Gender-sensitive employment policies.
UPSC Relevance:
- GS 2: Governance – Labour reforms
- GS 3: Economy – Employment
GS 2: Social Justice – Informal workforce