Employment Generation and Labour Market Reforms: Trends, Challenges, and Policy Implications

Abstract

Employment generation has remained a critical challenge for emerging economies like India, where the demographic dividend requires effective utilization. Labour market reforms have been introduced to enhance flexibility, efficiency, and inclusiveness in employment opportunities. This paper examines the interplay between employment generation and labour market reforms in India from 2019 to 2024, focusing on government initiatives, labour codes, and post-pandemic recovery. Using secondary data from government reports, labour surveys, and international databases, this study highlights both progress and persistent challenges. The findings suggest that while reforms improved formalization and social security coverage, the informal sector continues to dominate. A balanced approach between worker protection and employer flexibility is essential for sustainable job creation.