Employment Trends in India

Insights from the Economic Survey 2024-25

The Economic Survey 2024-25 highlights a significant improvement in India's labour market, with reducing unemployment, rising formal employment, increased female workforce participation, and growth in self-employment. Key sectors like the digital economy and renewable energy are emerging as major job creators.

Declining Unemployment and Rising Labour Participation

India's unemployment rate has fallen from 6% in 2017-18 to 3.2% in 2023-24, reflecting post-pandemic recovery and formal job creation.

·       EPFO subscriptions more than doubled, from 61 lakh in FY19 to 131 lakh in FY24.

·       61% of new payroll additions came from those under 29 years.

·       Casual employment dropped from 24.9% to 19.8%, indicating a shift towards formal jobs.

These trends suggest a stronger, more structured labour market with increasing youth employment.

Increased Female Workforce Participation

Women's labour force participation has surged from 23.3% in 2017-18 to 41.7% in 2023-24.

·       Government schemes like Mudra Yojana, Start-Up India, and DAY-NRLM support female entrepreneurs.

·       Digital and renewable energy sectors are offering flexible, high-growth employ-ment for women.

Further efforts are needed to bridge gender wage gaps and improve workplace inclusivity.

Growth in Self-Employment and Entrepreneurship

The share of self-employed workers has risen from 52.2% in 2017-18 to 58.4% in 2023-24, with casual labour declining.

·       Schemes like PMEGP and PM Vishwakarma are fostering small businesses and artisanal trades.

·       Workers are choosing structured self-employment over precarious casual work.

This reflects a broader shift towards entrepreneurial growth and economic self-reliance.

Digital and Renewable Energy Sectors Driving Employment

·       AI, fintech, and automation in the digital economy are creating high-skill jobs.

·       Renewable energy is generating employment in solar, wind, and green hydrogen projects.

·       Both sectors offer inclusive opportunities, particularly for women.

These industries are set to be key employment drivers in India's future economy.

Skilling for a Future-Ready Workforce

Government skilling initiatives have expanded significantly:

·       1.57 crore trained, 1.21 crore certified under PMKVY.

·       1.24 crore enrolled in ITIs, with 1,000 ITIs being upgraded.

·       37.94 lakh apprentices engaged since 2016.

A layered approach to skilling—integrating AI, digital, and industry-specific training—is needed to match workforce skills with evolving job demands.

Social Security and Labour Market Formalisation

·       Over 30.51 crore unorganised workers registered on e-Shram, integrating 12 social security schemes.

·       The e-Shram portal ensures streamlined access to welfare benefits for gig workers and daily wage earners.

This strengthens social protection and brings more workers into formal employment structures.

Wage Stagnation Amidst Corporate Profit Growth

Despite a 15-year high in corporate profitability in FY24, wages have lagged.

·       Unequal profit distribution among large firms raises concerns about income inequality.

·       Boosting wage growth is essential for sustaining consumer demand and economic stability.

Addressing this imbalance is key to long-term growth and equitable prosperity.

Labour Reforms for Employment Growth

The Survey advocates labour flexibility to support business expansion and job creation:

·       Flexible work hours and overtime policies to boost firm productivity.

·       Balanced worker rights to ensure fair employment conditions.

A modernised regulatory approach can help sustain employment growth while ensuring fair wages and job security.

(EN Team)