Labor markets globally are the most inefficient markets of all. The matching of supply and demand is constrained by huge asymmetries and subjectivity of information around skills, hiring plans, experience, investment plans, etc. India's labor market magnifies this inefficiency with labor laws that have not been updated to reflect the future of India's capabilities and confidence.
The India Labour Report is part of our broader campaign to disseminate information around the current labour regime that hinders job creation and the expansion of non-traditional employment. This Annual Report complements our research series that includes our Annual Salary Primer, Quarterly Employment Outlook Survey, and other periodic research efforts pertaining to India’s world of work. Labour policy, at heart, is all about people, their dreams and aspirations. These research efforts represent our contribution to an important debate
India’s current higher education system is a bottleneck, as 1 million people join the labour force every month for the next twenty years without adequate training. 80% of India’s higher education system of 2030 is yet to be built and needs breaking the difficult trinity of cost, quality and scale. It needs massive innovation, investment, deregulation and competition.
TeamLease has hired somebody every 5 minutes for the last 5 years but hired only 5% of the kids who came to us for a job.
This report is part of our annual series to raise awareness on the unintended and dangerous consequences of our current labour and human capital regime.
This report attempts to unravel the issue of employability in its overall hues and colours. Employability of an individual is seen to depend on the knowledge and skills possessed; the attitude towards employment, and the economic context within which employment is availed. These are inter-linked factors and an effort has been made to substantiate the argument using empirical analysis throughout the report.
This report is first ranking of Indian states based on a labour ecosystem index constructed using three variables of labour demand, labour supply and labour laws. It also examines the current state of our labour markets and makes the case for massive job creation to avoid an unemployment explosion (30% by 2020) that is neither inevitable nor desirable.