Contractualisation of industrial labour has risen sharply in recent years. Analyse the drivers of this trend. Discuss its implications. Evaluate the role of the public sector in institutionalising this shift.
Kartavya Desk Staff
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.
Q5. Contractualisation of industrial labour has risen sharply in recent years. Analyse the drivers of this trend. Discuss its implications. Evaluate the role of the public sector in institutionalising this shift. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question: Rising contractualisation in both private and public sectors has triggered debates around informalisation, job quality, and state responsibility in employment practices, especially post labour code reforms and recent PLFS data (2023). Key Demand of the question: The answer must examine the major reasons behind the rise of contractual labour, analyse its broader implications on the economy and workforce, and assess how public institutions have contributed to this structural shift. Structure of the Answer: Introduction Mention the growing trend of contract-based hiring in organised sectors and its link to labour market flexibilisation. Body Drivers of contractualisation: Identify key policy, economic, and structural causes like labour code reforms, cost pressures, and demand volatility. Implications: Briefly touch on outcomes such as reduced worker security, lower wages, and informalisation within formal sectors. Public sector’s role: Show how state-led outsourcing, ad hoc hiring, and lack of enforcement have legitimised this trend. Conclusion Highlight the need to balance employment flexibility with social protection and restore the state’s role as a model employer.
Why the question: Rising contractualisation in both private and public sectors has triggered debates around informalisation, job quality, and state responsibility in employment practices, especially post labour code reforms and recent PLFS data (2023).
Key Demand of the question: The answer must examine the major reasons behind the rise of contractual labour, analyse its broader implications on the economy and workforce, and assess how public institutions have contributed to this structural shift.
Structure of the Answer:
Introduction Mention the growing trend of contract-based hiring in organised sectors and its link to labour market flexibilisation.
• Drivers of contractualisation: Identify key policy, economic, and structural causes like labour code reforms, cost pressures, and demand volatility.
• Implications: Briefly touch on outcomes such as reduced worker security, lower wages, and informalisation within formal sectors.
• Public sector’s role: Show how state-led outsourcing, ad hoc hiring, and lack of enforcement have legitimised this trend.
Conclusion Highlight the need to balance employment flexibility with social protection and restore the state’s role as a model employer.