Economic Survey 2025-26 Highlights Employment Growth, Gig Worker Challenges and Labour Code Impact

Overview

The Economic Survey for 2025-26, tabled on 29 January 2026, says unemployment has fallen but points to income volatility and limited financial inclusion among gig workers.

Key Developments

• Structural reforms, tax rationalisation and skill‑development programmes have driven overall employment growth.
• Implementation of the Labour Codes is expected to boost formal jobs and improve security for women and gig workers.
• Digital platforms and policy changes are reshaping work, encouraging flexibility while pushing for formalisation.

Important Facts

• Gig workforce rose from 77 lakh (2020‑21) to 120 lakh (2024‑25), a 55% increase.
• Gig workers now constitute over 2% of India’s total workforce; non‑agricultural gigs are projected to reach 6.7% by 2029‑30, adding about ₹2.35 lakh crore to GDP.
• Smartphone penetration exceeds 80 crore users and the country records 15 billion UPI transactions per month, fueling platform growth.
• About 40% of gig workers earn less than ₹15,000 per month, indicating earnings insecurity.
• Gig workers face algorithmic bias in work allocation, performance monitoring and wage setting.
• Credit access remains “thin‑file” for most gig workers, limiting their ability to obtain loans.

Exam Relevance

Understanding the Survey’s findings helps aspirants answer GS‑III questions on employment trends, the impact of Periodic Labour Force Survey data, and the role of the Labour Codes in formalising the labour market. The gig economy’s growth raises issues of financial inclusion and ethical concerns like algorithmic bias, both of which are frequent essay topics.

Way Forward

Policymakers should:

• Strengthen social security nets for gig workers, including portable benefits and pension schemes.
• Promote digital literacy and up‑skilling to reduce vulnerability to AI‑driven job displacement.
• Enhance credit scoring models to improve loan access for “thin‑file” workers.
• Introduce transparent algorithmic audits to curb bias and ensure fair wage determination.
• Encourage platform‑state collaboration for data sharing, enabling better regulation without stifling innovation.

These steps can sustain employment growth while safeguarding the rights and incomes of the emerging gig workforce.