Impact of New Labour Codes on India's Youth and the Formalisation of the Gig Economy
India's four new Labour Codes aim to promote the formalisation of employment and improve the ease of doing business. However, data from the Periodic Labour Force Survey (PLFS) 2023-24 highlights significant challenges for the youth (aged 15-29). Youth unemployment stands at 10.2%, and a large portion of young workers are in informal or self-employed roles without written contracts or social security. The new codes introduce the 'gig worker' category and mandate social security, but gaps in coverage and the lack of a statutory national floor wage remain concerns for labor advocates.
Key Points
- The four Labour Codes consolidate 29 central laws to simplify compliance and expand social protection.
- Youth labor force participation is 46.5%, significantly lower than the 76.4% for those aged 30-59.
- Over 90% of young workers are informally employed, with 66.1% of regular salaried youth lacking written contracts.
- The codes recognize gig and platform workers for the first time, providing for registration and social security benefits.
Exam Facts
- The four codes are: Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and OSHWC Code (2020).
- NITI Aayog estimates the gig workforce will rise to 2.35 crore by 2029-30.
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