Indians Experience Reduced Work Hours Post-Covid as Real Earnings Remain Stagnant
Indian workers are experiencing a significant decline in weekly working hours compared to pre-pandemic levels, according to the latest Periodic Labour Force Survey (PLFS). The data reveals that self-employed individuals have been particularly affected, with their working hours dropping sharply. This trend, coupled with only modest growth in real earnings, indicates a troubling economic landscape characterized by lower aggregate demand and a recovery that appears to benefit only a select few. Additionally, an increase in women’s participation in the labor force, especially in rural agriculture, highlights a shift towards distress-led employment.
Decline in Working Hours Across the Workforce
The PLFS data shows that Indian workers are putting in fewer hours each week in 2025 than they did before the Covid-19 pandemic. Self-employed individuals, who make up nearly 56% of the workforce, have seen their average weekly hours plummet from 46.6 hours in the July 2018–June 2019 period to just 39.6 hours in 2025. Casual workers and salaried employees have also experienced reductions, with their weekly hours decreasing to 41.2 and 48.8 hours, respectively. Experts suggest that this decline reflects a broader issue of lower aggregate demand in the economy, with recovery being driven mainly by high-earning individuals and large enterprises.
Amit Basole, a professor at Azim Premji University, noted that many self-employed workers have faced declining demand for their services, leading to reduced earnings and less incentive to work longer hours. He emphasized that the situation creates a self-perpetuating cycle, where casual workers are also struggling to find opportunities. This trend indicates that the labor market recovery is not as robust as the declining unemployment rate might suggest.
Modest Growth in Real Earnings
Despite the decline in working hours, data on real monthly earnings reveals slight improvements for various worker categories. In 2025, self-employed individuals earned an average of Rs 7,617, a modest increase from Rs 7,336 in the 2018–19 period. Salaried workers saw their earnings rise to Rs 11,634 from Rs 11,289, while casual workers experienced an increase in daily earnings from Rs 198 to Rs 232. However, these gains are overshadowed by the overall decline in working hours, raising concerns about the sustainability of this economic recovery.
The modest growth in earnings suggests that while some workers are earning slightly more, the overall economic environment remains challenging. The disparity in recovery between different sectors and worker types highlights the need for targeted policies to support those most affected by the pandemic’s economic fallout.
Gender Disparities in Labor Force Participation
The data also reveals significant gender disparities in working hours and labor force participation. Both men and women have seen declines in their weekly working hours, with men working an average of 45.9 hours in 2025, down from 48.9 hours in 2018–19. Women, on the other hand, worked an average of 34.1 hours, a decrease from 39.4 hours. Notably, rural women have experienced the steepest decline, with their working hours dropping to 32.6 hours in 2025 from 38.2 hours in the previous period.
Interestingly, the labor force participation rate (LFPR) for women has nearly doubled, rising to 34.6% in 2025 from 18.2% in the July 2017–June 2018 period. Labour economist Santosh Mehrotra attributes this increase to women’s engagement in agriculture, which he describes as distress-led employment. Many women are compelled to work to supplement household income, rather than pursuing jobs aligned with their skills. This trend underscores the challenges faced by women in the labor market and the need for policies that address these disparities.
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