1. Context and Background

1.1 India’s four Labour Codes came into force in November 2025, marking the biggest labour reform since Independence.
1.2 They consolidated 29 central labour laws into four Codes to simplify compliance, universalise minimum wages and expand social protection.
1.3 Reform aims to balance labour flexibility with worker protection and improve ease of doing business.

2. Youth Employment Context

2.1 India’s median age is under 30, compared to ~40 in China and ~50 in Japan.
2.2 Despite demographic advantage, India faces a youth employment crisis.
2.3 As per PLFS 2023–24, labour force participation among ages 15–29 is 46.5%, versus 76.4% for ages 30–59.
2.4 Youth unemployment stands at 10.2%, compared to less than 1% among older adults.

3. Gender Dimension

3.1 Only 28.8% of young women participate in the labour force.
3.2 Urban unemployment among young women is particularly high at 20.1%.
3.3 Gender gaps intensify youth labour market vulnerability.

4. Nature of Youth Employment

4.1 Youth are disproportionately concentrated in informal employment.
4.2 In 2023–24, nearly 90% of young workers were informally employed.
4.3 Even among regular salaried jobs, 60.5% of youth lacked social security, compared to 50.5% among workers above 30.
4.4 Youth are more likely to be unpaid family workers within self-employment.

5. Contractual Insecurity

5.1 66.1% of young regular workers had no written contract in 2023–24.
5.2 Only 16.5% of young workers had long-term contracts exceeding three years.
5.3 Contract insecurity is significantly higher among youth than older workers.

6. Gig and Platform Work

6.1 Youth are over-represented in platform-based work.
6.2 NITI Aayog estimates 7.7 million gig workers in 2020–21.
6.3 Projected to rise to 23.5 million by 2029–30.
6.4 Gig work remains weakly protected despite legal recognition.

7. How Labour Codes Affect Youth

7.1 Formalisation and Wage Protection

7.1.1 Statutory national floor wage benefits youth clustered in low-paid entry-level jobs.
7.1.2 Fixed-term contracts must ensure parity in wages and benefits with permanent workers.

7.2 Employment Security

7.2.1 Mandatory appointment letters strengthen baseline employment security.
7.2.2 Guaranteed wage payment during leave improves income stability.

7.3 Social Security Expansion

7.3.1 Code on Social Security extends welfare schemes to unorganised, gig and platform workers.
7.3.2 Covers health, maternity, disability, education and skill development.
7.3.3 Registration allowed from age 16, with National and State Social Security Boards.

8. Industrial Relations Code and Youth

8.1 Mandatory vacancy reporting improves labour market transparency.
8.2 Higher retrenchment thresholds reduce hiring friction.
8.3 Legal clarity for fixed-term employment suits youth-dominated job categories.
8.4 Fixed-term workers gain benefits after one year of service.

9. Key Gaps and Challenges

9.1 Many provisions for unorganised and gig workers mirror the 2008 Unorganised Workers’ Social Security Act, which had limited impact.
9.2 Coverage excludes enterprises with fewer than 10 workers, leaving large gaps.
9.3 PLFS 2023–24 shows 42.7% of young workers lack written contracts, and nearly one-fifth work in enterprises with over 10 workers but remain uncovered.
9.4 Discretionary language and weak definitions of digital platform employment hinder implementation.
9.5 Multiple job-holding complicates benefit eligibility and tracking.

10. Data and Governance Issues

10.1 Labour data systems are weak in identifying gig and platform workers.
10.2 Gig workers are often misclassified under self-employment.
10.3 Lack of proactive worker registration limits actual coverage.

11. Policy Implications

11.1 Need for stronger labour data systems.
11.2 Identification of gig workers as a distinct category in national surveys.
11.3 Proactive registration mechanisms to translate legal recognition into real protection.