Employment and Labor Market Issues

The Indian labor market faces structural issues that contribute to poverty. The majority of employment is in the informal sector, which is characterized by low wages, lack of job security, and poor working conditions. While there has been growth in certain industries, many sectors remain underdeveloped, and the job market often does not absorb the increasing number of job seekers, especially in rural areas. Additionally, the mismatch between the skills possessed by job seekers and those demanded by employers exacerbates unemployment and underemployment.