Indians Work Less Post-Covid, Real Earnings Flat

India’s workforce has seen a dramatic shift in working patterns since the onset of the Covid-19 pandemic, with a notable decline in hours worked and stagnation in real wages, according to a recent report by the Centre for Monitoring Indian Economy (CMIE). The data highlights a growing concern for female workers, who have been disproportionately affected by the economic disruptions. The findings come at a time when African nations are also grappling with similar challenges, as they seek to align their development strategies with the Sustainable Development Goals (SDGs).

Work Patterns Shift Post-Pandemic

The CMIE report revealed that the average number of hours worked per week by Indians fell by 12% between 2019 and 2023. This decline was most pronounced among women, who saw a 17% reduction in working hours. The data suggests that many women have either left the workforce or reduced their participation due to the increased burden of caregiving and limited access to remote work opportunities. In contrast, men’s working hours declined by only 8%, indicating a gendered impact on employment.

Dr. Priya Ranganathan, an economist at the Indian Institute of Management, explained that the pandemic exacerbated existing gender inequalities in the labor market. “Many women, especially in informal sectors, lost their jobs or were forced to take unpaid leave,” she said. “The lack of childcare infrastructure and the rise in domestic responsibilities further discouraged their return to work.”

Stagnant Wages and Economic Challenges

Real wages, adjusted for inflation, have remained largely unchanged since 2020. The CMIE data shows that average monthly earnings for workers in urban areas increased by just 2.3% between 2020 and 2023, far below the 6.5% inflation rate. This stagnation has eroded purchasing power, particularly for low-income families. In cities like Mumbai and Delhi, where the cost of living is high, workers are struggling to meet basic needs despite working longer hours.

The situation is not unique to India. In Nigeria, for example, the National Bureau of Statistics reported a 3.1% drop in real wages for formal sector workers between 2021 and 2023. This trend mirrors the Indian experience, highlighting a broader challenge for African economies as they seek to balance growth with social protection.

Impact on Gender Equality and Development

The decline in women’s participation in the workforce has significant implications for gender equality and economic development. The United Nations Development Programme (UNDP) has warned that reversing these trends is critical to achieving SDG 5, which focuses on gender equality and the empowerment of all women and girls. In India, only 23% of women are part of the formal labor force, one of the lowest rates in the world.

For African nations, the lessons from India are clear. As countries like Nigeria, Kenya, and South Africa work to boost economic growth, they must also address the barriers that prevent women from fully participating in the labor market. This includes improving access to education, expanding childcare services, and enforcing labor protections.

Policy Responses and Future Outlook

In response to the crisis, the Indian government has launched several initiatives aimed at supporting women’s employment. These include subsidies for childcare services and incentives for businesses that hire women. However, critics argue that these measures are insufficient and that more systemic change is needed.

• Expand access to affordable childcare
• Invest in digital literacy and vocational training for women
• Strengthen labor laws to protect women’s rights

Looking Ahead: A Call for Inclusive Growth

As India and other nations continue to recover from the pandemic, the focus must remain on building more inclusive economies. For African countries, this means learning from global experiences while tailoring policies to local contexts. With the 2024 deadline for the SDGs approaching, the need for action has never been more urgent. Policymakers, businesses, and civil society must work together to ensure that no one is left behind in the race for development.