Employment and Wage Distribution in Indian Labour Market

Informal activities are concentrated in the areas that belong to socio-economic deprivation. Production and employment are the key indicators to measure the performance of an informal economy. These factors have significant effects on the economy because most of the workforce about 90% are engaged in these informal economic activities and more than half of the total GDP is derived alone from these sectors. The reduction in state control and market through disinvestment, withdrawal of subsidies, reduction of public expenditure for welfare etc., are the leading cause of extensive growth of the informal labour market. Slow Industrial progress has reduced formal employment opportunities for men and women and pushed them into the informal sector as an alternative source of livelihood.