In India, the Periodic Labour Force Survey (PLFS) captures employment trends across age, gender, and education for rural and urban populations on a quarterly and annual basis. Its launch in 2017 was a key government reform. Pre-2017, the National Sample Survey Office used to conduct employment and unemployment rounds quinquennially, leading to estimates with significant time lag. The PLFS offers more frequent and granular data, supporting evidence-based policymaking.
Broad employment trends
Based on PLFS data, employment in India broadly shows an improving trend from 2017-18 onwards in indicators like labour force participation rate (LFPR), worker population ratio (WPR), and unemployment rate (UR) for people aged 15 years and above. For instance, the LFPR has increased from 49.8% in 2017-18 to 60.1% in 2023-24. Similarly, the WPR has increased from 46.8% in 2017-18 to 58.2% in 2023-24, and the unemployment rate has declined from 6.0% to a low of 3.2%.
Rise of female workforce
The most important aspect of employment growth has been the rise of women workforce. Facilitated by government schemes, women have taken up self-employment and entered the workforce on an impressive scale. Data shows female WPR almost doubled from 22% to over 40% and UR dropped from about 6% to around 3% between 2017-18 and 2023-24.
The upward trend of educated women in the workforce
Around 40% of those with educational qualifications of post-graduate and above were working in 2023-24, compared to around 35% in 2017-18. About 24% of women with education up to higher secondary were in the workforce in 2023-24, compared to about 11% in 2017-18. Besides, around 50% of the women educated up to primary level were working in 2023-24, compared to about 25% in 2017-18.
The upward shift in self-employed
A noticeable trend in the PLFS data from 2017-18 to 2023-24 is an upward shift in self-employment. Data shows a decline in casual labour by about 5%, accompanied by a decline in regular wage/salary jobs at about 1%, with an upward shift in self-employed by about 6%. The shift is therefore attributable more to an increase in the total workforce and decline in low-quality casual labour employment, rather than a decline in the regular wage salaried workforce per se.
Self-employed are also employed
According to the 19th International Conference of Labour Statisticians, the International Labour Organization’s definition of employment is people who “were engaged in any activity to produce goods or provide services for pay or profit”. This definition covers all forms of employment: employees, self-employed, family help (seen as contributing members), whether the employment is declared or not.
On the other hand, PLFS data includes self-employed, regular wage/salaried and casual labour. In this context, the PLFS also covers “helpers in household enterprise” under the self-employed category, as they are engaged in economic activity. About 37% of the female workforce in India falls into this category and is categorised as employed.
Changing landscape
India has seen remarkable economic growth over the past decade, rising from the 10th largest economy in 2014 to the fifth largest in 2024, and transforming the employment landscape. Services, construction, trade, manufacturing and the micro, small and medium enterprise sectors are the major drivers of employment growth, while the job market evolves rapidly. New roles are emerging in start-ups, the gig economy, and key industries like healthcare, hospitality, and education. Both domestic and global markets are seeing a surge in opportunities, particularly in technology-driven roles. In this scenario, analytical thinking and creativity are among the most required skills.
Trends in employability
Studies such as India Skills Report 2024 show that the skill sets of our graduates have been catching up with growth trends and employability. Among graduates, employability shot up from 33.95% in 2013 to 54.81% in 2024. The QS World Future Skills Index 2025 shows India’s favourable position especially concerning the “ready-to-recruit” market in digital roles, integrating artificial intelligence into the workforce, and green jobs. Emerging roles in smart manufacturing, logistics, hospitality and tourism, and healthcare are giving a fillip to the female workforce too.
Start-ups and GCCs
India has the world’s third-largest start-up ecosystem, with over 1.57 lakh departments for the promotion of industry and internal trade-registered firms directly employing 16.6 lakh people. India has become the GCC (global capability centre) capital of the world with the highest number of units after the US. Also, 17% of global technology capability centres have set up offices in India. Around 1,700 GCCs operate in India, creating jobs, particularly in healthcare and technology sectors. Nasscom, in its latest report, estimates that around 19 lakh jobs have been created in GCCs.
Education, skills, and employment
With a 51.25% employability rate of India’s youth (Economic Survey 2023-24), the future looks promising, especially with the government’s focus on aligning education and skills with industry needs. By prioritising ease of doing business through visionary policy reforms, the government has paved the way for India to emerge as a prominent global manufacturing hub.
As India strides towards the vision of Viksit Bharat, empowering youth with the right skills and work experience, through schemes like the PM Internship and the employment-linked incentive, continues to be a priority. – Financial Express
