India's post-pandemic jobs recovery masks fall in working hours, weak demand
Indian workers are putting in fewer hours a week than they did before the Covid-19 pandemic, underscoring a fragile and uneven labour market recovery despite improving headline indicators.
Data from the latest Periodic Labour Force Survey (PLFS) show a broad-based decline in weekly working hours across employment categories between 2018–19 and 2025, with the sharpest drop among the self-employed — who account for nearly 56% of the workforce.
Weekly working hours for self-employed individuals, including own-account workers and helpers in household enterprises, fell to 39.6 hours in 2025 from 46.6 hours in 2018–19. Casual workers saw their hours decline to 41.2 from 43.1, while salaried workers recorded a more modest drop to 48.8 hours from 50.2.
Economists say the trend reflects weak aggregate demand in the aftermath of the pandemic, with much of the recovery concentrated among higher-income groups and large firms, leaving small enterprises and informal workers behind.
Amit Basole, professor at Azim Premji University, said that a vast number of own-account enterprises have suffered a decline in demand in recent years, leading to low earnings, so they have no incentive to work longer hours. “It’s a self-feeding loop. If we look at casual workers too, they are not finding many takers for their services either. This reflects that the recovery in the labour market is not along the lines suggested by the headline unemployment rate, which signals a steady decline,” he said.
Income data reinforces the picture of a weak recovery. Real monthly earnings for self-employed workers rose only marginally to Rs 7,617 in 2025 from Rs 7,336 in 2018–19. Salaried workers saw a similar uptick, with real monthly earnings at Rs 11,634 compared to Rs 11,289 earlier, while daily real wages for casual workers increased to Rs 232 from Rs 198.
The decline in working hours cuts across gender lines. Men worked an average of 45.9 hours per week in 2025, down from 48.9 hours in 2018–19, while women’s working hours dropped more sharply to 34.1 from 39.4.
Rural women recorded the steepest fall, with weekly hours declining to 32.6 in 2025 from 38.2 earlier. This comes even as female labour force participation has surged, nearly doubling to 34.6% in 2025 from 18.2% in 2017–18.
Labour economist Santosh Mehrotra said that this rise in female LFPR in the aftermath of Covid-19 is primarily driven by their engagement in agriculture. According to Mehrotra, this is a sign of distress-led employment, as they are being forced to work to augment household income rather than finding jobs based on their skills.
Data from the latest Periodic Labour Force Survey (PLFS) show a broad-based decline in weekly working hours across employment categories between 2018–19 and 2025, with the sharpest drop among the self-employed — who account for nearly 56% of the workforce.
Weekly working hours for self-employed individuals, including own-account workers and helpers in household enterprises, fell to 39.6 hours in 2025 from 46.6 hours in 2018–19. Casual workers saw their hours decline to 41.2 from 43.1, while salaried workers recorded a more modest drop to 48.8 hours from 50.2.
Economists say the trend reflects weak aggregate demand in the aftermath of the pandemic, with much of the recovery concentrated among higher-income groups and large firms, leaving small enterprises and informal workers behind.
Amit Basole, professor at Azim Premji University, said that a vast number of own-account enterprises have suffered a decline in demand in recent years, leading to low earnings, so they have no incentive to work longer hours. “It’s a self-feeding loop. If we look at casual workers too, they are not finding many takers for their services either. This reflects that the recovery in the labour market is not along the lines suggested by the headline unemployment rate, which signals a steady decline,” he said.
Income data reinforces the picture of a weak recovery. Real monthly earnings for self-employed workers rose only marginally to Rs 7,617 in 2025 from Rs 7,336 in 2018–19. Salaried workers saw a similar uptick, with real monthly earnings at Rs 11,634 compared to Rs 11,289 earlier, while daily real wages for casual workers increased to Rs 232 from Rs 198.
The decline in working hours cuts across gender lines. Men worked an average of 45.9 hours per week in 2025, down from 48.9 hours in 2018–19, while women’s working hours dropped more sharply to 34.1 from 39.4.
Rural women recorded the steepest fall, with weekly hours declining to 32.6 in 2025 from 38.2 earlier. This comes even as female labour force participation has surged, nearly doubling to 34.6% in 2025 from 18.2% in 2017–18.
Labour economist Santosh Mehrotra said that this rise in female LFPR in the aftermath of Covid-19 is primarily driven by their engagement in agriculture. According to Mehrotra, this is a sign of distress-led employment, as they are being forced to work to augment household income rather than finding jobs based on their skills.
Next Story