Economic Survey 2025-26 Highlights Employment Growth, Gig Economy Expansion and Emerging Worker Vulnerabilities

Overview The Economic Survey 2025‑26, tabled on 29 January 2026 , says India has seen steady job creation. It credits structural reforms, tax rationalisation and skill‑development programmes for the rise in employment. However, the Survey also flags income volatility and limited financial inclusion for the growing cohort of gig workers . Key Developments Unemployment fell according to the Periodic Labour Force Survey (PLFS) data. Implementation of the four Labour Codes is expected to improve job security, especially for women and gig workers. Policies such as GST 2.0 , deregulation and state‑level labour reforms have boosted labour‑force participation. Gig‑economy workforce rose from 77 lakh (2020‑21) to 120 lakh (2024‑25) , a 55 % increase, now over 2 % of total employment . Digital penetration – over 80 crore smartphone users and 15 billion UPI transactions per month – underpins gig‑work growth. Important Facts The Survey projects non‑agricultural gig jobs to reach 6.7 % of the workforce by 2029‑30 , contributing about ₹2.35 lakh crore to GDP. Yet, about 40 % of gig workers earn less than ₹15,000 per month . Their access to credit remains “thin‑file”, meaning lenders have little formal financial history to assess risk. Platform algorithms dictate work allocation, wages and performance monitoring, raising concerns of algorithmic bias and worker burnout. Additionally, fears of job loss due to AI / ML are growing. UPSC Relevance Understanding the Survey’s findings helps candidates answer questions on: Labour market dynamics and the impact of reforms (GS3: Economy). Role of digital platforms and financial inclusion in shaping employment (GS3: Economy). Ethical considerations of technology‑driven work arrangements (GS4: Ethics). Policy evaluation – how GST 2.0, Labour Codes and skill‑development schemes influence macro‑economic indicators. Way Forward To sustain inclusive growth, the government should: Strengthen social security for gig workers through portable benefits and formal credit histories. Promote up‑skilling programmes aligned with AI/ML trends to reduce skill gaps. Ensure transparency in platform algorithms to mitigate bias and protect worker welfare. Monitor the impact of GST 2.0 and labour reforms on informal sector transition. These steps can convert the gig economy from a precarious labour pool into a catalyst for skilled, formal employment.