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The informal sector in India plays a crucial role in sustaining livelihoods for a large portion of the population. According to the Periodic Labour Force Survey (PLFS), around 90% of the workforce in India is employed in the informal sector. These workers, while vital to the economy, face numerous challenges due to the unstructured and unregulated nature of their employment. From the lens of Human Resource Planning (HRP), understanding these challenges is essential for workforce development, strategic policymaking, and ensuring sustainable human resource utilization. HRP involves forecasting an organization's future human resource needs and planning accordingly, and its application to the informal sector can help address systemic inefficiencies and improve labor welfare. One of the most significant challenges faced by informal sector workers is job insecurity. These workers often lack formal contracts, making their employment highly precarious. Without written agreements or legal protections, they are vulnerable to sudden job loss, wage theft, and arbitrary termination. From a human resource planning perspective, this impedes workforce stability and productivity. To counteract this, policymakers should encourage the formalization of jobs and promote the registration of informal workers in labor records, which can serve as a foundation for future planning and social security coverage. Another major issue is the lack of social security. Informal sector workers typically do not have access to benefits such as health insurance, pension, paid leave, or maternity benefits. This vulnerability exposes them to extreme hardships during personal or economic crises. In HRP terms, this translates to poor workforce resilience and low retention. Policymakers can address this challenge by expanding the reach of social security schemes like the Pradhan Mantri Shram Yogi Maandhan Yojana, Employees' State Insurance (ESI), and health coverage under Ayushman Bharat. Digital platforms like e-Shram can also be used for better planning and delivery of such benefits. Low and irregular income is another pressing problem. Informal workers often earn below the minimum wage and face irregular payment cycles. This makes financial planning difficult for them and impacts __________ _______ ______ __________ ______ _____ _________.
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