Jobs Rising but Salaries Not Keeping Pace with Inflation, Pg 12

• Employment Trends in India: - Worker-population ratio has been increasing over the past seven years as per PLFS (Periodic Labour Force Survey) data. - This indicates that jobs are rising, although fluctuations exist. - Employment growth is not translating into wage growth, especially for salaried workers.

• Stagnation in Real Wages: - Real wages for regular salaried jobs have not kept pace with inflation over the last seven years. - The share of salaried persons increased from 34.7% (2017-18) to 43.7% (2023-24). - Despite job creation, wages have not risen proportionally, reducing purchasing power.

• Lack of Skills as a Key Issue: - NITI Aayog member Arvind Virmani emphasized that low skill levels are the primary reason for wage stagnation. - Hiring of skilled workers is inadequate, leading to low productivity and wage suppression. - States & districts need to focus on skill training to improve employability and income levels.

• Bridging the skill gap through vocational training & education reforms is critical to wage growth.

• State & district-level skilling programs must be prioritized, ensuring alignment with industry demands.

• Structural reforms in labor markets, productivity enhancement, and inflation control can support real wage growth.

Mains Mock Question:

Despite increasing employment, real wages in India have stagnated. Discuss the causes and suggest measures to improve wage growth in the formal sector.