The Daily Brief Why India's job market is broken
7 snips
Jul 1, 2025 Dive into the complexities of India's job market, where millions of jobs exist but wages remain stagnant. Discover the stark divide between stable formal employment and the precarious lives of those in the informal sector. The discussion highlights the struggles with job insecurity and the fierce competition for government positions. Additionally, explore the rising significance of Certificates of Deposit in banking, as they emerge as a signal for liquidity in the post-pandemic economy.
AI Snips
Chapters
Transcript
Episode notes
Two Parallel Job Markets
- India's job market functions as two parallel worlds with little crossover: a small formal sector and a vast informal sector.
- Most workers remain trapped in insecure, low-wage informal jobs with almost no paths to formal employment.
Employment Trajectories in India
- Most informal workers cycle between unstable jobs with no progress and limited saving opportunities.
- Only about 7% hold stable formal jobs with career growth, highlighting stark employment inequalities.
Jobs Created Lack Quality
- India is rapidly creating jobs but mostly in dead-end or informal roles without wage growth.
- Productivity stagnation means workers earn nearly the same wages despite increased employment.