The Dynamics of Indian Labour: Ramifications for Future of Work and Sustainability

Abstract

The labour market is complex to systematise into a well-behaved structure. Here, we attempt to understand the synergy between actors and institutions in the Indian labour market and to reveal the implications for the future of work and sustainability. Combining aggregated and micro-level data from multiple sources, we examine the indicators regarding the macro economy, production and engagement in firms, and changes in the occupational structure of workers. While the familiar narrative of technology–labour acrimony emerges, it is weak. In contrast, the tie between economy and technology is a favourable representation of the proximity between human capital and technology. Inadequate human capital implies chances of non-absorption in employment, especially in the future, even for a labour-abundant country such as India. While labour market flexibility through tripartite contact work does not directly relate to labour productivity, high-wage blue-collar work is a more promising factor that aligns with productivity. On the sustainability front, upgrading environmental standards results in more cohesion between labour and capital. The conventional logic of substitutability between capital and labour is invalid when firms adopt environmental standards. From a policy vantage, the scenarios of sustainability transition to cleaner technologies and decent work require complementarity between capital and labour. Considering the dimension of upgrading in order to transition towards sustainability is an essential factor for understanding the future of work.