Trends in formal and informal sector employment 1991-2018

In this paper, trends in formal and informal sector employment are presented with special reference to post reforms period (1991-2018). Both employment and unemployment in India plays a significant role in determining the economic growth as well as economic development. With the introduction of new economic policy in 1991, the Indian economy broadened its scope of growth in multiple ways. One of the important growths is, in terms of employment opportunities and declining unemployment rates. But quality of this increased employment is always questioned in the context of increasing informality and lack of social security benefits for the workforce. An overview of employment scenario in India reveals that, 90 percent of the workforce in India are informal (defined as those without any social insurance). Addressing this informality is one of the greatest challenges in the path of achieving inclusive growth. This paper tries to explore the trends in this formal as well as informal sector employment in India, during the period of 1991-2018