Contemporary employment situation in
India
Introduction
Employment refers to the state of having a job or being employed.
Employment is a relationship between two parties regulating the
provision of paid labour services.
Employment is crucial for individuals and society as it provides
income, stability, and a sense of purpose for workers while driving
economic growth and development. It ensures that people can meet
their basic needs, supports social structures, and promotes overall
well-being. Employment also fuels consumption, stimulates demand
for goods and services, and generates tax revenues that fund public
services and infrastructure. Moreover, it fosters skill development and
innovation, enhancing productivity and competitiveness in the global
economy. Effective employment policies can reduce poverty and
inequality, contributing to a more inclusive and prosperous society.
Employment in India is vital as it sustains millions of livelihoods,
encompassing sectors such as agriculture, manufacturing, services,
and IT. Agriculture remains a major employer, especially in rural areas,
while urban regions benefit from the growing IT and services sectors.
Employment provides individuals with the means to meet daily needs,
ensures stability, and fosters skill development. It stimulates economic
growth by boosting consumer spending and generating tax revenues,
which fund essential public services like education and healthcare.
Despite ongoing challenges like unemployment and the need for more
formal jobs, government initiatives such as MGNREGA(Mahatma
Gandhi National Rural Employment Guarantee Act, 2005) Skill India, and
Make in India aim to create job opportunities and enhance workforce skills.
Overall, employment is fundamental to improving living standards and
driving economic development in India.
Employment opportunities globally outside of India span diverse
sectors and regions. Developed countries emphasize technology,
finance, and healthcare, offering high-skilled roles in software
development, finance management, and medical services. Renewable
energy sectors like solar and wind energy continue to expand,
creating jobs in engineering and environmental sciences. Education
and training sectors remain robust with demand for teachers and
corporate trainers. Creative industries such as digital marketing and
design provide avenues for innovation and expression. Skilled trades
in construction and manufacturing sectors offer stable careers.
Remote work options are increasing, fostering flexibility in fields like
freelance writing and online services. Overall, global employment
reflects a broad spectrum of opportunities tailored to various skills and
aspirations.
Unemployment opportunities typically refers to programs and
initiatives aimed at mitigating the effects of joblessness. Governments
and organizations provide unemployment benefits to support
individuals during job searches, while job training programs offer skills
development to enhance employability. Community initiatives and
volunteer work can provide valuable experience and networking
opportunities, potentially leading to employment. Entrepreneurship
and freelancing also emerge as alternatives, allowing individuals to
create their own employment opportunities. Career counseling and
retraining services help unemployed individuals explore new industries
or roles.
The government plays a crucial role in employment through various
policies and initiatives aimed at fostering a conducive environment for
job creation, reducing unemployment, and promoting inclusive growth.
It implements labor laws to protect workers' rights, ensure fair wages,
and provide safe working conditions. Economic policies such as fiscal
stimulus measures, infrastructure investments, and industry-specific
incentives stimulate job growth across sectors. Education and
vocational training programs are supported to enhance skills and
employability. Additionally, government-funded projects and social
welfare programs provide direct employment opportunities and
support for individuals during economic downturns. Overall,
government interventions are essential for maintaining a resilient and
equitable labor market.
Employment trends can vary significantly depending on the region,
sector, and prevailing economic conditions. Globally, the COVID-19
pandemic initially led to widespread job losses and economic
uncertainty in many sectors, particularly those reliant on in-person
activities such as hospitality, tourism, and retail. However, as
vaccination efforts increased and economies began to reopen, some
sectors experienced a gradual recovery in employment levels.
Meanwhile, industries like technology, e-commerce, and healthcare
continued to see growth and demand for skilled workers. Government
interventions such as stimulus packages and support for businesses
and individuals have also influenced employment trends, aiming to
stabilize labor markets and facilitate recovery. Overall, while some
sectors have seen recovery, others continue to face challenges,
highlighting the complex and uneven nature of global employment
trends in recent times.
Objectives
1. Investigate the impact of the COVID-19 pandemic on employment
dynamics, including job losses, shifts in demand for certain skills, and
recovery efforts.
2. Examine employment trends and opportunities in key sectors such as
technology, healthcare, manufacturing, services, agriculture, and
emerging industries.
3. Study the challenges and opportunities associated with the informal
sector employment, focusing on formalization and worker protections.
4. Explore the impact of automation, AI, and technological
advancements on job creation, skill requirements, and workforce
adaptation.
5. Evaluate the impact of recent economic policies, reforms, and
initiatives (e.g., Make in India, Skill India) on employment generation
and sectoral growth.
Review of literature
1. An article published by thehindu: According to the India Employment
Report 2024, released by the International Labour Organisation (ILO) and
the Institute of Human Development (IHD), nearly 83% of India's
unemployed workforce is made up of youth. The report also highlights
that the proportion of unemployed youth with secondary or higher
education has nearly doubled from 35.2% in 2000 to 65.7% in 2022.
While youth employment and underemployment increased from 2000 to
2019, it declined during the pandemic years. The report also notes that
educated youths have faced significantly higher levels of unemployment
during this period.
2. An article published by economic political: Discusses the 14% increase
in the female workforce participation rate (FWPR) in India between 2017
and 2023, a period marked by economic disruptions due to COVID-19.
This rise is primarily driven by the self-employment of women, often as a
response to economic distress. However, the article notes that mere
representation in the workforce can obscure the gendered, unpaid, and
precarious nature of women's employment in India.
3. An article published by sarcassociates :The employment rate in India
has demonstrated growth in the current fiscal year, according to both
official and unofficial data. The Periodic Labour Force Survey (PLFS)
reports an increase in the overall employment rate from 50.7% in 2017-18
to 60.8% in 2022-23. Urban employment rates also rose, from 47.6% to
50.4%. The Labor Force Participation Rate (LFPR) for males increased
from 75.8% to 78.5%, while for females, it grew significantly from 23.3%
to 37.0%. This improvement in LFPR reflects a positive economic
trajectory, recovering from the pandemic-induced slowdown in early FY
2023.
4. An article published nature.com:The impact of artificial intelligence on
employment-AI and automation boost labor productivity by handling
routine tasks, which allows employees to focus on more valuable work
and develop their skills. This shift results in the disappearance of
low-skilled jobs but also creates new, previously unrealized roles. AI and
digital technologies not only enhance the capabilities of robots but also
potentially raise their value and wages. As machines become integral to
labor, they compete directly with human workers. AI, as a transformative
technology similar to those from early industrialization, brings both
opportunities and challenges. Technological advancement increases the
amount of capital required and can lead to a surplus of workers, reflecting
the dual nature of progress in labor markets.
5. An article published by linkedin :The impact of automation and
artificial intelligence (AI) on jobs and industries is multifaceted. While
these technologies offer significant benefits like increased productivity,
efficiency, and innovation, they also present challenges, particularly in
terms of job displacement and transformation. Automation and AI can
displace jobs involving routine tasks, such as those in manufacturing, data
entry, and customer service. However, they also create new opportunities,
often requiring skills in programming, data analysis, and AI development.
Emerging roles may include positions in robotics maintenance, AI ethics,
and human-AI interaction, reflecting a shift towards more specialized and
technologically advanced jobs.
6. An article published by opastpublishers :To effectively respond to
economic shocks and enhance labor market resilience, a comprehensive
approach is needed. This includes implementing counter-cyclical
macroeconomic policies, providing adequate income support, and
expanding job-retention schemes. Strengthening work institutions
involves improving working conditions, modernizing and making
employment services more flexible, and fostering social dialogue for
balanced policy responses. Enhancing employment and social protection
systems to cover all workers and focus on risk prevention is crucial.
Promoting transitions from the informal to the formal economy,
advancing gender equality, improving employment prospects for youth,
and promoting lifelong learning with a focus on digital skills are essential
for a robust and equitable labor market.
7. An article published by unacademy:India's employment landscape
reveals that the number of employed persons decreased from 29.579
million to 28.999 million, with the Labour Force Participation Rate
slightly declining from 46.90% to 46.80% in December 2012. By
September 2021, India's population grew to 1.347 billion, while the
employment rate was between 42.30% and 40.90% in December 2020.
The Youth Unemployment Rate rose to 24.90% in March 2021. The
unorganized sector, employing over 94% of India's workforce, includes
unlicensed, self-employed, or unregistered activities like small stores and
handicrafts, whereas the organized sector comprises licensed,
GST-registered businesses such as corporations, factories, and large
enterprises.
8. An article published by employmentnews.gov:Employment generation is
crucial for translating economic growth into widespread prosperity. In a
growing economy, increasing employment with rising productivity is the
most effective way for the poor to engage in the growth process and improve
their living standards. Without quality employment opportunities, high
economic growth can lead to greater inequalities, making it undesirable.
Therefore, generating gainful employment is essential for achieving
equitable growth and alleviating poverty.
9. An article published by generation.org:The healthcare sector is rapidly
expanding, driven by the increasing demand for skilled professionals across
various disciplines. The COVID-19 pandemic highlighted the critical role of
healthcare workers and underscored the need for a strong workforce to
address emerging challenges. Organizations like Generation are focused on
training, supporting, and placing individuals in career opportunities within
this sector, helping them access otherwise unattainable jobs. With the global
healthcare sector expected to grow by 10.95% in the next five years, job
seekers can find fulfilling and impactful careers by staying informed about
current trends and opportunities.
10.An article published by ibef.org:As per the economic survey reports,
estimated employment in the manufacturing sector in India was 5.7 crore
in 2017-18, 6.12 crore in 2018-19 which was further increased to 6.24
crore in 2019-20. India's display panel market is estimated to grow from
~US$ 7 billion in 2021 to US$ 15 billion in 2025.
11.An article published by indianbudget.com:India's workforce in 2022-23
is estimated to be nearly 56.5 crore (565 million), based on the Worker
Population Ratio (WPR) from the Periodic Labour Force Survey (PLFS)
and population projections from the Ministry of Health and Family
Welfare (MoHFW). The distribution of this workforce shows that over
45% are employed in agriculture, 11.4% in manufacturing, 28.9% in
services, and 13% in construction.
12. An article published by linkedin:India's manufacturing sector is
poised for significant growth, aiming to increase its GDP contribution to
25% by 2025. Hiring in the sector is on the rise, with abundant job
opportunities in high-growth areas such as automotive, electronics, and
textiles, driven by strong domestic demand and export potential.
Technological advancements like automation and AI are expected to
transform the sector, creating a need for a skilled workforce proficient in
modern manufacturing practices.
13. An article published by business.standard:Nearly half of the new
jobs created by Indian companies were in the service sector, particularly
in information technology (IT), banking, and finance, according to a Bank
of Baroda study. Meanwhile, the manufacturing, infrastructure, and
consumption sectors saw moderate job creation. The report highlights the
increasing importance of employment, noting that many companies have
been adjusting their workforce to align with business models, and the rise
of artificial intelligence (AI) and machine learning presents challenges to
job creation. This trend is significant as the corporate sector is likely to be
the first to feel the impact of business cycles and technological
advancements.
14. An article published by pmindia.gov: The Make in India and Atma
Nirbhar Bharat initiatives aim to strengthen domestic manufacturing,
reduce import dependency, and promote self-reliance, leading to job
growth in sectors like electronics, automotive, and textiles, especially
benefiting SMEs. However, delays in policy implementation and
infrastructural challenges have sometimes hindered the full potential of
job creation under these initiatives.
15. An article published by thewire: Job creation in India varies across
sectors, each with its own complexities. Beyond simply increasing the
number of jobs, there is a pressing need for quality employment that
enables upward social mobility for unemployed youth. While some
sectors could significantly transform the labor market, others have
struggled to keep pace. To address these challenges, India requires a
comprehensive, jobs-oriented industrial policy that focuses not just on any
job creation, but on securing "good" jobs that meet the workforce's
aspirations and promote upward mobility
Data Analysis
1. Employment rate in India(2017-2018)?
Percentage
Male 68.6
Female 19.2%
In 2017-2018, India's employment rate data showed a significant gender gap, with
68.6% of working-age men employed compared to only 19.2% of women. This
stark disparity indicates that while a majority of men were participating in the labor
market, a vast majority of women were not, likely due to societal norms, limited
access to education and skills, safety concerns, and a lack of supportive workplace
policies. The low female employment rate underscores the need for targeted
interventions to improve women's participation in the workforce and achieve a
more balanced and inclusive labor market.
2. Employment rate in India(2023-2024)?
Particulars Percentage
Male 73.5
Female 30
In 2023-2024, the employment rate in India reflects an increase for
both men and women, with 73.5% of working-age men and 30% of
working-age women employed. While the male employment rate
shows a moderate rise from previous years, the female
employment rate has seen a notable increase from 19.2% in
2017-2018 to 30%. This suggests progress in women’s labour
market participation, possibly due to targeted policy interventions,
increased educational opportunities, and a shift toward more
inclusive work environments. However, a significant gender gap
persists, indicating the continued need for efforts to further
enhance women's employment opportunities in India.
3. Employment rate in rural area(2017-2018)?
Particular Percentage
Male 76.4
Female 24.6
In 2017-2018, the employment rate in rural India was 76.4% for
males and 24.6% for females, indicating a significant gender gap in
labour market participation. While a large majority of rural men
were employed, less than a quarter of rural women were part of the
workforce. This disparity reflects the challenges women in rural
areas face, such as limited access to education, restrictive cultural
norms, fewer formal job opportunities, and inadequate
infrastructure for safe and flexible employment. Addressing these
barriers is essential for improving female employment rates and
achieving a more balanced rural labour market.
4. Employment rate in rural area(2023-2024)?
Particulars Percentage
Male 80.2
Female 41.5
In 2023-2024, the employment rate in rural India was 80.2% for
men and 41.5% for women, reflecting a substantial increase in
female employment from 24.6% in 2017-2018. This rise suggests
significant progress in women’s participation in the rural labour
market, potentially due to improved access to education, economic
opportunities, and targeted employment policies. However, despite
this notable increase, the employment rate for women remains
considerably lower than that of men, highlighting the need for
continued efforts to address the remaining barriers and achieve
greater gender parity in rural employment.
5. Employment rate in Agriculture sector(2022)?
Particulars Percentage
Male 38
Female 62
In 2022, the employment rate in India's agriculture sector showed a
stark gender difference, with 38% of working-age men and 62% of
working-age women employed in this sector. This indicates that a
significantly higher proportion of women than men were engaged
in agricultural work. This trend reflects the critical role agriculture
plays in women's employment, especially in rural areas, where
alternative job opportunities are limited. The higher female
participation also suggests that many women may be involved in
informal, low-wage, or unpaid family labour, highlighting the need
for policies that improve working conditions and economic
opportunities for women in agriculture.
6. Employment rate in manufacturing sector (2022)?
Particulars Percentage
Male 70
Female 30
In 2022, the manufacturing sector in India saw 70% of its workforce
comprised of men and 30% comprised of women. This distribution reflects a
substantial male dominance in the sector, consistent with historical trends of
higher male participation in manufacturing roles. However, the 30% female
representation marks a significant proportion and indicates progress towards
greater gender inclusivity. Despite this advancement, the considerable
gender gap suggests ongoing challenges, such as occupational segregation
and barriers to entry and advancement for women. To achieve a more
balanced workforce, targeted efforts are needed to further enhance female
participation and address the persistent disparities in the manufacturing
sector.
7. Age group with highest employment rate in India?
Age group Percentage
24-29 23
30-39 70
40-50 5
50-60 2
In India, the 30-39 years age group has the highest employment rate at 70%,
significantly surpassing other age groups. This peak reflects the prime
working years when individuals are typically most established in their
careers, possessing substantial experience and skills that enhance their
employability. In contrast, the 24-29 years age group has a much lower
employment rate of 23%, likely due to ongoing education and the transition
into the workforce. The 40-50 years and 50-60 years age groups show even
lower employment rates at 5% and 2%, respectively, indicating reduced
workforce participation as individuals approach retirement age. This data
underscores that the 30-39 years range is crucial for maximizing labour
market engagement in India.
8.AI affects on Employment during Covid-19
Particulars Percentage
Employment 40
Unemployment 60
During COVID-19, AI significantly impacted employment, with 60% of the
workforce facing unemployment while 40% retained or gained jobs. The
rapid adoption of AI and automation technologies by businesses to maintain
operations and reduce human contact led to widespread job losses,
particularly in roles that could be automated, such as retail and manual
labour.
9. Positive Impact of Government Policies on Employment Rates?
Particulars Percentage
Skill development & training 27.8
programs
Labour market reforms 11.1
Infrastructure Investment 22.2
Stimulus Packages and Economic 38.8
Support Programs
The pie chart illustrates the positive effects of various government policies
on employment rates. The most significant impact comes from Stimulus
Packages and Economic Support Programs (3.5%), which provide financial
aid and incentives to businesses, helping them retain and create jobs. Skill
Development and Training Programs (2.5%) also play a crucial role by
equipping workers with new skills, making them more employable in a
changing job market. Infrastructure Investments (2%) generate jobs directly
in construction and related sectors. Labor Market Reforms (1%) contribute
to employment by making it easier for businesses to hire and retain workers,
albeit to a lesser extent. Overall, these policies collectively help stabilize and
increase employment during economic challenges.
10. Estimated Impact of Income Levels on Employment
Rates
Income Level Employment Rate (%)
Low Income 55%
Lower-Middle Income 65%
Upper-Middle Income 75%
High Income 85%
The pie chart shows that employment rates are closely linked to income
levels, with higher-income groups enjoying significantly higher employment
rates. Individuals in the High Income group have the highest employment
rate (85%), followed by the Upper-Middle Income group (75%), due to
better access to education, skills, and stable job opportunities. Meanwhile,
the Lower-Middle Income group has a moderate employment rate (65%),
and the Low Income group has the lowest rate (55%), reflecting challenges
such as limited access to resources, education, and economic opportunities.
Overall, higher income is associated with better employment prospects,
while lower income levels are linked to greater employment challenges.
11. Employment rates vary by job type?
Job type Percentage
Full time 60
Part-Time 25
Contractual 10
Temporary 5
The pie chart and table reveal that the majority of employment is
concentrated in full-time positions, accounting for 60% of the
workforce. Part-time jobs make up 25% of employment, indicating
a significant but smaller share. Contractual roles represent 10% of
the workforce, suggesting a moderate level of job flexibility.
Temporary positions are the smallest segment at 5%, highlighting
their relatively minor role in the overall job market. This
distribution underscores the predominance of full-time work, while
also illustrating the notable presence of part-time and contractual
arrangements, with temporary roles being less common.
12. Educational attainment impact employment rates?
Education Level Percentage
High School or less 50
Some College 65
Bachelor's Degree 75
Postgraduate Degree 85
The pie chart and table illustrate that higher educational attainment is
strongly correlated with increased employment rates. Individuals with only a
high school education or less have the lowest employment rate at 50%,
indicating more significant challenges in the job market. Those with some
college education have a higher employment rate at 65%, reflecting
improved job prospects. Employment rates further increase to 75% for those
with a bachelor's degree and reach 85% for individuals with postgraduate
degrees. This trend demonstrates that higher levels of education generally
enhance employability and job security.
13. Employment Rates by Industry?
Industry Percentage (%)
Technology 30
Healthcare 25
Retail 25
Manufacturing 20
The employment distribution across industries shows that the technology
sector leads with 30% of total employment, reflecting its substantial growth
and high demand for tech skills. Healthcare and retail each account for 25%,
highlighting their critical roles in providing essential services and
widespread job opportunities, particularly in entry-level and support roles.
Manufacturing, with 20%, represents a smaller but still significant portion of
employment, suggesting its continued importance despite a relative decline
compared to technology and service-oriented sectors. Overall, this
distribution underscores the prominence of technology and healthcare in the
modern job market while illustrating the ongoing, though slightly
diminished, role of manufacturing.
