India's Job Recovery Shows Decline in Working Hours and Weak Demand
India’s post-pandemic jobs recovery masks fall in working hours, weak demand
The Economic TimesImage: The Economic Times
Despite a reported recovery in the job market post-COVID-19, Indian workers are logging fewer hours weekly compared to pre-pandemic levels, indicating a fragile labor market. The decline in working hours is particularly pronounced among self-employed individuals, reflecting weak demand and uneven recovery across different employment categories.
- 01Weekly working hours for self-employed workers fell from 46.6 hours in 2018-19 to 39.6 hours in 2025.
- 02Real monthly earnings for self-employed workers increased marginally to ₹7,617 in 2025 from ₹7,336 in 2018-19.
- 03Men's average working hours decreased to 45.9 hours per week, while women's fell to 34.1 hours.
- 04Rural women's working hours saw a significant drop to 32.6 hours in 2025 from 38.2 hours.
- 05The rise in female labor force participation is primarily due to distress-led employment in agriculture.
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A recent analysis of India's labor market reveals a concerning trend: workers are putting in fewer hours than before the COVID-19 pandemic. According to the Periodic Labour Force Survey (PLFS), self-employed individuals saw their weekly working hours plummet from 46.6 hours in 2018-19 to 39.6 hours in 2025. Casual workers experienced a similar decline, with hours dropping from 43.1 to 41.2 hours, while salaried workers recorded a modest decrease from 50.2 hours to 48.8 hours. This decline is attributed to weak aggregate demand, particularly affecting small enterprises and informal workers. Real monthly earnings for self-employed workers rose slightly to ₹7,617 in 2025, while salaried workers saw earnings increase to ₹11,634. Gender disparities are evident, with men's working hours decreasing to 45.9 hours and women's to 34.1 hours. Rural women faced the steepest decline, with working hours falling to 32.6 hours. Despite an increase in female labor force participation, this is largely due to distress-led employment, especially in agriculture, rather than skill-based job opportunities.
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The decline in working hours and weak demand may lead to lower household incomes, particularly affecting self-employed and casual workers. This could result in increased financial strain for families relying on these incomes.
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