Generally, many believe that running their own business is more profitable than holding a job, as it allows for personal freedom and potentially higher earnings. However, statistics suggest otherwise. Numbers reveal that a job can yield more income than self-employment. Additionally, annual growth is often higher in employment compared to owning a business.
Recently, the Periodic Labour Force Survey (PLFS) report was released, covering data from July 2023 to June 2024.
The survey indicates that employed individuals in the country work an average of 48.2 hours per week, earning a monthly average of ₹21,103. The positive aspect is that compared to the previous year, working hours have slightly decreased while earnings have increased. A year ago, individuals worked 49.1 hours weekly and earned ₹20,039 monthly. This means they are now working one hour less per week and seeing a 5% increase in earnings.
Which Job is More Profitable?
The PLFS report shows that holding a job yields an average monthly income of over ₹21,000. In contrast, self-employed individuals earn less than ₹14,000 per month.
The report reveals that the average monthly income for self-employed individuals is ₹13,900, which was ₹13,347 a year ago, indicating a 4% increase in a year.
Notably, this report also highlights that men’s earnings increase more rapidly than women's. The average monthly income for employed men has increased by around 6.5%, whereas women’s income hasn't even increased by 1%. Moreover, there is an approximate difference of ₹5,000 in earnings between employed men and women.
This trend also applies to self-employed women, who earn ₹10,000 less per month compared to men.
Similarly, daily wages for laborers have increased by about 7.5% over the year. From April to June 2023, laborers received an average daily wage of ₹403, which increased to ₹433 between April and June 2024.
Source: aajtak
Self-Employment Means Less Work!
Self-employed individuals work approximately 10 hours less per week compared to those holding jobs. Employed individuals work an average of 48.2 hours per week, whereas self-employed individuals work only 39.6 hours per week. Laborers also work less than 40 hours per week.
The report also illustrates that employed women work 10 hours less per week compared to men. Men work an average of 50.6 hours per week, while women work only 40.8 hours. Additionally, women’s working hours have decreased by 2 hours per week compared to the previous year.
Similarly, self-employed men work 15 hours more per week compared to self-employed women. Men work an average of 44.6 hours per week, while women work only 30.3 hours per week.
Source: aajtak
Also Read:
Hardworking Gujaratis, But Lagging in Earnings!
According to the PLFS report, Gujaratis work an average of 53 hours per week in their jobs, earning a monthly average of ₹17,500. In contrast, people in Lakshadweep work only 32.7 hours per week and earn more than ₹29,000 monthly.
Meanwhile, residents of the capital, Delhi, work 52.3 hours per week on average, earning ₹22,862 per month. Workers in UP and Bihar work 5 hours less per week compared to Gujaratis but earn more. In UP, individuals work 47.6 hours per week, while those in Bihar work 48.8 hours. Despite this, people in UP earn an average of ₹19,203 per month and those in Bihar earn ₹18,602 per month.
Source: aajtak
How Much Work is Needed?
Generally, those who work longer hours are often given more importance. Last year, Infosys founder Narayan Murthy sparked controversy by suggesting that young people should work 70 hours per week to help India progress rapidly.
According to the Labour Code, the work limit is set at 8 hours per day, which totals 48 hours per week. India is among the countries where people work the most hours per week. According to the International Labour Organization (ILO), people in the United Arab Emirates (UAE) work the most, averaging 53 hours per week. Indians work 48 hours per week. In China, workers average 46 hours per week, while in the USA it’s 37 hours, and in the UK and Israel, it’s 36 hours per week.
It is often claimed that working longer hours increases productivity, but research contradicts these claims. Studies show that if someone works more than 50 hours per week, their productivity is likely to decrease. Additionally, if the working hours exceed 55 hours per week, productivity drops significantly. Not taking at least one day off per week also impacts productivity.
To address this, Stephen Arstol, CEO of Tower Paddle Boards, implemented a unique approach in 2015. He limited the workday to five hours, with no breaks. During these five hours, employees concentrated fully on their work. This approach resulted in a 50% increase in company turnover.
Working longer hours can also be hazardous to health. In a 2021 report by the World Health Organization (WHO), it was revealed that in 2016, 745,000 people worldwide died due to long working hours. According to WHO, working 55 hours or more per week increases the risk of stroke by 35% and heart-related diseases by 17%.
