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On the rise: Share of contract labour at 42%, highest in over 25 years

Annual Survey of Industries shows 10th straight year of increase

manufacturing sector, economy
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Higher productivity and growth can also result in increased demand for labour, which can be as effective as a legal mandate in creating a better deal for workers

Sachin P Mampatta Mumbai
Persons on contract now account for 42 per cent of India’s organised manufacturing sector workers, the highest it has been in at least 27 years in data going back to 1997-98.
 
It has risen nearly 8 percentage points in the last 10 years, shows an analysis of data from the Annual Survey of Industries (ASI). The last time it had degrown was in 2013-14 when it declined by around 0.6 percentage point. Contractualisation has risen every year since then, and in 2023-24, it was more than twice the 20 per cent share seen in 1999-2000.
 
A contract worker is often