Question:

The distribution of workforce in different sectors indicates that over the last five decades (1972-2018), people have moved from self-employment and regular salaried employment to casual wage work. What is this process called?

Updated On: Mar 27, 2025
  • Informalisation of workforce
  • Regularisation of workforce
  • Formalisation of workforce
  • Casualisation of workforce
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The trend of moving from regular salaried jobs to casual or temporary work is called casualisation of the workforce.
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The trend of transitioning from regular salaried jobs to casual or temporary work is referred to as the casualisation of the workforce. This shift represents a significant change in the labor market, where an increasing number of workers are employed on a short-term or contract basis rather than having permanent, full-time positions.

The rise of gig economy jobs, outsourcing, and flexible work arrangements has contributed to this trend. Many workers in industries such as retail, hospitality, and IT are now finding themselves in casual employment situations, which often lack job security, benefits, and long-term stability.

While casualisation offers certain advantages like flexibility and autonomy for workers, it also raises concerns about job insecurity, lack of worker benefits (such as healthcare, pensions, etc.), and the erosion of workers' rights. This shift can lead to an increase in income inequality and a more fragmented labor market.

Policymakers and labor advocates are concerned about these issues and are working to address the challenges posed by casualisation through legislation and reforms that aim to protect workers' rights while adapting to the changing nature of work.
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