Turning the spotlight on the urban poor

Context:

The India Employment Report (IER) 2024, released by the Institute for Human Development and International Labour Organization, sheds light on the disparity in employment and income between rural and urban areas amidst a 5.4% average real economic growth from 2015-16 to 2022-23.

Findings and Trends:

• Trend Analysis: The IER 2024 reveals a divergent trend between rural and urban areas, with a relatively higher unemployment rate observed in urban areas, contrasting with higher average monthly earnings for self-employed, regular employed, and casual labor in urban regions.
• Migration Patterns: Despite overall migration increasing, there's been a decline in male migration for economic mobility, particularly towards urban areas. Instead, rural poor households tend to migrate to slums, highlighting the need to analyze income and employment trends among slum dwellers.
• Survey Results: A survey conducted in Kolkata's slums between 2012 and 2022-23 showcased stable major occupations like unskilled labor, alongside notable shifts such as a rise in petty businesses and construction work. Income trends depict varied fluctuations across different employment categories, suggesting evolving economic dynamics in urban slums.

Implications and Recommendations:

• Need for Gainful Employment: The decline in income across certain sectors underscores the necessity for viable employment options, particularly for medium to large shop owners who have witnessed a decrease in real income.
• Gender Composition and Casual Work: While casual labor has seen a rise due to increasing wages, it lacks adequate work conditions and social security. The decline in inequality alongside falling income signals deeper poverty among the urban poor, necessitating enhanced public support for accessible employment and basic necessities.
• Policy Focus: Focusing on rural non-farm sectors and providing support for gainful employment and affordable essentials in urban areas becomes imperative to address the challenges of economic mobility and quality of work for the urban poor highlighted in the IER 2024.