New Delhi: A new State Bank of India report says India’s labour reforms could generate nearly 77 lakh jobs over the next few years, giving a strong push to formal employment and improving social security coverage across sectors. The labour codes, which subsume 29 existing laws, came into effect on November 21 and are expected to lift the formal workforce share from the current 60.4% to 75.5%, according to the analysis based on PLFS data.
SBI estimates that wider formalisation could reduce unemployment by up to 1.3 percentage points as more workers gain access to structured jobs, social protection and clearer workplace regulations. The report suggests that around 20% of unorganised workers may shift into the formal net, potentially extending social security benefits to nearly 10 crore people.
The bank also projects a sharp rise in household spending as incomes stabilise. With an assumed savings rate of 30%, daily per capita consumption could rise by about ₹66, translating into an additional ₹75,000 crore of consumption in the economy.
The codes on wages, social security, occupational safety and industrial relations aim to simplify compliance for employers while ensuring better protections for workers. SBI notes that these reforms could help build a labour ecosystem that is more productive, resilient and aligned with emerging economic needs.
BI Bureau
