Navigating India's Sustainable Employment Challenge AI Driven Opportunities and Decent Work Deficits in The Digital Economy

Abstract

This study looks at India's progress toward Sustainable Development Goal 8 (SDG 8), which aims for inclusive and sustained economic growth, employment, and decent work. It conducts a detailed analysis of labor market indicators, changes in economic structure, and the impact of emerging artificial intelligence (AI). The research uses data from the nationally representative Periodic Labour Force Survey (PLFS) for 2023-2024. It evaluates key employment indicators, including the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR), as well as the Employment Quality Index (EQI) to assess decent work deficits. The findings show ongoing structural dualism, with agriculture leading in employment while manufacturing remains stagnant, even with notable productivity gains driven by AI in IT and financial services. Regression analysis highlights gender inequality, education, social protection, job security, GDP growth, and youth disengagement as major factors affecting labor market outcomes. While GDP per capita growth is on track, decent work indicators like EQI show significant delays. Gender wage gaps and high youth NEET ratios add further challenges to the goal of inclusive growth. The study suggests addressing issues with employment quality and using AI-driven productivity improvements to generate sustainable job opportunities. Strategic efforts to tackle barriers to equitable growth can help India move toward sustainable economic development and a more inclusive digital economy, ultimately supporting the achievement of SDG 8.