COVID-19 Crisis and Some Contours of the Rural Labour Market in India

Abstract

Indian labour markets are segmented based on caste, gender groups, region, types of workers and types of contractual arrangements. An important feature of the labour markets in India, notwithstanding intersectionalities across segments, is greater access to high-quality work with social security benefits to the privileged sections of the society as compared to the socially oppressed sections, including women. The latter dominate in low-quality, less stable and insecure work in the informal sector.The COVID-19 pandemic and associated lockdown measures have increased the vulnerability of the informal workers, including the migrant workers. The article analyses the features of rural and urban labour markets, prior to the outbreak of the pandemic, that had contributed to vulnerability of the workforce. The analysis was based on the National Statistical Office ( NSO, 2020 )—Periodic Labour Force Survey (PLFS) database of 2018–2019, NSSO (2014)—Report of the Situation of Agricultural Households in India, NSSO (2014)—Employment and Unemployment Survey, Labour Bureau, and the Economic Survey of India. It also analyses the impacts of the pandemic on the rural labour market based on the Centre for Monitoring Indian Economy (CMIE) database. Our analysis reveals that the rural labour market in India was more adversely affected by the lockdown measures than the urban counterpart. In the rural areas, there was collapse of non-farm employment and increased participation in agricultural work was largely an outcome of distress. Furthermore, reverse migration of workers had led to sharp decline in remittances, particularly in the eastern Indian states that are largely agrarian and poor. The article advocates policy initiatives that include expansion of the rural employment programmes for providing relief to the poor and working population in India.