Only 20 pc workforce facilitated by work from home, finds IGIDR study

Mumbai: A study conducted by the Indira Gandhi Institute of Development Research (IGIDR) Mumbai-a Research Institute of Reserve Bank of India (RBI), found that the Work From Home (WFH) occupations employ less than 20% of workers and 15 percent of rural and 17 percent of urban non-farm workers can be categorized as vulnerable, with no decent work.

IGIDR is conducting research on the impacts of COVID-19 on the economy in various aspects. In the research series, Vasavi Bhatt, Shweta Grover, Ajay Sharma are the scholars who conducted the recent study called “COVID-19 Pandemic, Lockdown and the Indian Labour Market: Evidence from Periodic Labour Force Survey ( PLFS) 2017-18.”

Vasavi Bhatt is a PhD candidate with IGIDR. Shweta Grover has recently completed her PhD from Indian Institute of Management Indore and Ajay Sharma is faculty at Indian Institute of Management Indore. The study intended to analyse the current labour market from the perspective of COVID-19 pandemic, subsequent lockdown and the expected slowdown in the Indian economy.

Aim of the Study

The aim of the study is to explore the questions such as what part of the labour market would be largely unaffected from lockdown and expected slowdown? What type of occupations would be the riskiest in the wake of social distancing norms? Which are the vulnerable groups of workers in the labour market that are likely to be the most affected due to the lockdown and its aftermath?  

This study attempted to provide a timely analysis of the labour market with a focus on identifying the effect of COVID-19 pandemic induced lockdown and the subsequent slowdown. Using the PLFS survey 2017-18, scholars identified various groups of workers in the labour market who would be largely unaffected, exposed to higher risk (especially in the wake of social distancing) and would be the most vulnerable set of workers in the current scenario.

Findings of the study

In light of the detrimental effects of COVID-19 on the global and national economy, the study found that in the aftermath of the lockdown and with social distancing being the norm, the possibility of working from home or remote locations will be one of the most desired traits of the workers.

The study identified the WFH occupations and found that they employ less than 20% of the total number of workers. Women have a higher share than men in such occupations and they are largely concentrated in urban areas. It has also found that some occupations are riskier than others in terms of exposure to human interaction. Almost half of the labour force is employed in high risk and medium risk occupations. Depending on the composition of workers by the risk level of their jobs, certain industries are more affected than others.

Lastly, the study discovered the vulnerable group of workers as per the definition of the International Labour Organization (ILO -2009) for the Indian labour market. It has found that 15 percent of rural and 17 percent of urban non-farm workers can be categorized as vulnerable, with no decent work. Most of them are either self-employed or casual workers and largely without any social protection. It is relevant to gauge the magnitude of the workforce and the occupational structure of an industry by the feasibility of the jobs to be done at home, the associated risk level and vulnerability.

Inputs for the Indian policymakers

The scholars feel that the study will enable them to make informed policy decisions that can facilitate workers to go back to work in a safe environment. This study intends to provide inputs for the Indian policymakers and academics, who are working for the benefits of various agents in the labour market. It attempts to start a dialogue and discussion to design and implement labour.