A Nation on the Move
India’s employment landscape is undergoing a historic transformation. According to the Ministry of Labour and Employment, the number of employed individuals surged from 475 million in 2017–18 to 643.3 million in 2023–24, marking a remarkable increase of 168.3 million jobs within six years. This surge underscores India’s shift toward a youth-driven, technology-empowered, and inclusive economy, as government policies emphasize skill development, entrepreneurship, and gender equality.
While GDP remains a key measure of economic growth, true progress lies in job creation and quality of livelihoods — the real test of sustainable development. Today, India is not just one of the fastest-growing economies but also one of the largest job creators globally, driven by innovation, infrastructure expansion, and a digital revolution that has redefined the nature of work.
A Workforce in Motion: Employment Indicators Rising
To monitor the evolving labor market, India relies on the Periodic Labour Force Survey (PLFS) conducted by the National Statistics Office. The data paints an encouraging picture. Between June and August 2025, the Labour Force Participation Rate (LFPR) climbed from 54.2% to 55%, while the Worker Population Ratio (WPR) increased from 51.2% to 52.2%.
At a broader level, India’s LFPR for individuals aged 15 years and above grew from 49.8% in 2017–18 to 60.1% in 2023–24, and the WPR from 46.8% to 58.2% — clear evidence of a more active and productive workforce. Agriculture remains a dominant employer in rural regions, engaging 44.6% of rural men and 70.9% of rural women, while the services sector leads in urban India, employing over 60% of both men and women.
This steady rise across sectors suggests not only economic resilience but also a broad-based revival of employment, aligning with India’s goal of inclusive growth.
Formalization on the Rise: The EPFO Surge
India’s growing formal workforce is another striking development. The Employees’ Provident Fund Organisation (EPFO) recorded 12.9 million new subscribers in 2024–25, a substantial leap from 6.1 million in 2018–19. Since September 2017, over 77.3 million people have joined the EPFO network, including 2.1 million new subscribers in July 2025 alone.
Nearly 60% of these new subscribers belong to the 18–25 age group, underscoring the youth-driven momentum of India’s formal economy. This surge reflects expanding job opportunities, increased social security coverage, and greater awareness about employee benefits. Meanwhile, self-employment has grown from 52.2% to 58.4%, and informal labor has fallen from 24.9% to 19.8%, signaling a shift toward entrepreneurship and structured employment.
Rising Incomes and Declining Unemployment
Another encouraging sign lies in wage growth and falling unemployment. The average daily wage for informal workers (excluding public works) rose from ₹294 in 2017 to ₹433 in 2024, while salaried workers’ average monthly earnings climbed from ₹16,538 to ₹21,103. These increases highlight improved income stability and better job quality.
Unemployment, meanwhile, has dropped significantly — from 6% in 2017–18 to 3.2% in 2023–24. Youth unemployment has also plunged from 17.8% to 10.2%, falling below the global average of 13.3%. August 2025 data shows the rural jobless rate at 4.3%, its lowest in months, confirming a steady trend of employment recovery across both rural and urban India.
Women at Work: From Marginal to Mainstream
Women’s participation in India’s labor market is one of the most transformative stories of recent years. The female LFPR almost doubled from 23.3% in 2017–18 to 41.7% in 2023–24, while the female WPR rose from 22% to 40.3%.
In 2024–25 alone, 2.69 million women joined the EPFO, and by July 2025, the total number of women subscribers had reached 4.42 lakh. This progress reflects not just growing inclusion but also the success of gender-focused government programs such as Mission Shakti, Lakhpati Didi, and Namo Drone Didi, which empower women through skills, technology, and entrepreneurship.
India’s vision of achieving 70% female workforce participation by 2047 is no longer distant — it is steadily taking shape.
Emerging Frontiers: Startups, Gig Economy, and GCCs
India’s employment growth is increasingly fueled by new-age industries — from health-tech and ed-tech to fintech, logistics, and renewable energy. The gig economy is reshaping traditional work structures, offering flexibility and digital livelihoods to millions. With over 3.12 crore workers registered on the e-Shram portal, gig and platform workers are now being formally recognized and protected through initiatives like the Code on Social Security (2020).
Simultaneously, India’s startup ecosystem — the third largest in the world — has become a major employment generator, projected to create 1.7 million jobs by 2025. The growth of Global Capability Centers (GCCs) — now employing two million professionals — highlights India’s position as the “GCC Capital of the World,” driving innovation in artificial intelligence, data analytics, cybersecurity, and digital commerce.
Government Initiatives: Building a Skilled and Inclusive Workforce
The government’s comprehensive employment strategy combines skill development, job creation incentives, and social inclusion. Initiatives such as Skill India Mission, PM Vishwakarma, ITI Upgradation Scheme, and the Employment Linked Incentive (ELI) program aim to equip youth with market-ready skills while incentivizing industries to create millions of jobs.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) continues to provide livelihood security to rural households, while the Prime Minister’s Developed India Employment Scheme (launched in 2025) targets over 45 million jobs through employer incentives. Simultaneously, job fairs organized by the National Skill Development Corporation have placed over 1.1 million candidates in just 16 months.
Toward a Developed, Empowered India
India’s labor market transformation represents more than just numbers — it signifies a shift in economic structure, inclusivity, and aspiration. The creation of 17 crore jobs in six years reflects not only policy success but also the resilience and adaptability of India’s people.
As the nation strides toward “Viksit Bharat 2047”, the focus remains on building a digitally skilled, gender-inclusive, and sustainable workforce. With the right mix of innovation, governance, and social empowerment, India is not merely generating employment — it is shaping a future where every citizen can participate meaningfully in the nation’s growth story.
(With agency inputs)
