Employment rises, but wages lag behind inflation

Niti Aayog member Arvind Virmani reported that while employment in India is rising, real wages for regular jobs have not kept up with inflation over the past seven years. He attributed this to a lack of skilled jobs. The worker-population ratio increased to 43.7% in 2023-24 from 34.7% in 2017-18, indicating more jobs than population growth. However, real wages for regular salaried positions have stagnated, while casual workers' wages have improved. Virmani emphasized the need for better education and skill development at all levels to address this issue. He noted that improving skills can enhance productivity and wages, benefiting both current workers and new entrants to the job market.