 "India needs 7.8 mn non-farm jobs yearly to sustain growth: Economic Survey")
The Economic Survey 2024-25, tabled in Parliament on Friday, mentioned that India needs to create an average of 7.85 million non-farm jobs annually until 2030 to accommodate its expanding workforce. Generating quality jobs remains a critical and well-prioritised national objective, key to ensuring inclusive and sustainable economic growth.
Post-pandemic recovery in employment trends
India has seen notable employment growth in recent years, largely driven by sustained economic recovery. The 2023-24 Periodic Labour Force Survey (PLFS) by the National Statistical Organisation (NSO) reveals a robust post-pandemic rebound. The country’s overall unemployment rate for individuals aged 15 years and above has decreased from 6 per cent in 2017-18 to 3.2 per cent in 2023-24.
In urban areas, the quarterly unemployment rate for individuals aged 15 and above also showed progress, dropping from 6.6 per cent in Q2FY24 to 6.4 per cent in Q2FY25. Additionally, the labour force participation rate (LFPR) in urban areas increased from 49.3 per cent to 50.4 per cent, and the worker-to-population ratio (WPR) rose from 46 per cent to 47.2 per cent during the same period.
Eco Survey 2025: Regional labour market dynamics
The 2023-24 Periodic Labour Force Survey (PLFS) report highlights positive labour market trends across India. Of the 36 states and Union Territories, only 12 have a WPR lower than the national average of 43.7 per cent, and 12 fall below the national LFPR average of 45.1 per cent. On a positive note, 14 states have seen a significant increase of over 10 percentage points in their WPR, and 11 states have achieved a similar rise in their LFPR compared to 2017-18.
Economic Survey 2025: Shifts in employment types
The workforce has shown a notable shift towards self-employment. The proportion of self-employed individuals increased from 52.2 per cent in 2017-18 to 58.4 per cent in 2023-24, indicating a rise in entrepreneurial activities and flexible work arrangements. While regular salaried employment declined slightly from 22.8 per cent to 21.7 per cent, the trend has stabilised, with employment levels remaining steady or gradually improving since 2020-21. Casual workers also saw a decrease from 24.9 per cent to 19.8 per cent, suggesting a movement toward more structured self-employment models.
Impact on women’s employment trends
The shift in employment patterns has had a significant impact on women, particularly in rural areas. Although the proportion of women in salaried employment decreased, more women engaged in self-employment or contributed to household enterprises. In rural India, the share of women in regular wage jobs dropped from 10.5 per cent in 2017-18 to 7.8 per cent in 2023-24. In contrast, the share of women working as “own account workers/employers” or “helpers in household enterprises” has risen significantly. In urban areas, salaried employment for women decreased from 52.1 per cent to 49.4 per cent, with a notable dip in 2020-21 when it fell from 54.2 per cent to 50.1 per cent.
Growth in rural women’s entrepreneurial roles
Among rural women, the proportion working as “own account workers/employers” surged from 19 per cent in 2017-18 to 31.2 per cent in 2023-24, reflecting a strong trend towards independent work and entrepreneurship. Similarly, the share of women acting as "helpers in household enterprises" increased from 38.7 per cent to 42.3 per cent, pointing to a rise in family-oriented economic activities. In urban areas, “own account workers/employers” grew from 23.7 per cent to 28.5 per cent, and “helpers in household enterprises” rose from 11 per cent to 13.8 per cent over the same period.
Pandemic’s lasting impact on employment
The PLFS data, covering the period from July to June, reflects the Covid-19 pandemic’s deep impact, particularly in 2019-20. The lockdowns, coupled with challenges like school closures and health concerns, led many women to leave regular wage work in favour of flexible jobs, allowing them to care for children and elderly family members. The flexibility offered by “own account work” has provided opportunities for women, leading to a substantial increase in this employment category post-pandemic, the Economic Survey mentioned.
Initiatives to support entrepreneurship
Government schemes like Mudra Yojana, Skill India, Start-Up India, and Stand-Up India have significantly contributed to fostering entrepreneurship, providing skill training, and promoting self-reliance. “This ecosystem of support reflects the growing emphasis on empowering individuals to chart their own professional paths,” the survey document reads.