India's employment landscape has seen significant growth, with approximately 16.8 crore (168 million) new jobs added between 2017–18 and 2023–24. According to the Ministry of Labour and Employment, employment rose to 64.33 crore in 2023–24 from 47.5 crore in 2017–18, marking a net addition of 16.83 crore jobs over six years. 

Decline in unemployment rates

This surge in employment has been accompanied by a notable decline in the unemployment rate, which decreased from 6.0 per cent in 2017–18 to 3.2 per cent in 2023–24. The youth unemployment rate also saw a significant drop from 17.8 per cent to 10.2 per cent during the same period, placing it below the global average of 13.3 per cent, as per Press Information Bureau (PIB).

Women have been a driving force behind this employment growth, with over 1.56 crore females joining the formal workforce over the past seven years. This increase is reflected in the rise of women-led Micro, Small, and Medium Enterprises (MSMEs), which doubled from 2010–11 to 2023–24, as per the data shared by the Ministry of Labour and Employment

Shift in employment patterns

Employment patterns have also shifted, with self-employment increasing to 58.4 per cent in 2023–24, up from 52.2 per cent in 2017–18. This trend reflects growing entrepreneurial activity and a preference for flexible work arrangements. Conversely, the proportion of casual workers declined from 24.9 per cent to 19.8 per cent, indicating a shift toward more stable employment forms. 

The growth in employment has been driven by various sectors, including startups and Global Capability Centres (GCCs). India's nearly 2 lakh recognised startups, the world's third-largest, have created over 17 lakh jobs and 118 unicorns by 2025. Initiatives like Skill India, Rozgar Melas, PM Vishwakarma scheme, MGNREGA, PM Viksit Bharat Rojgar Yojana, and Lakhpati Didi Scheme have also contributed to this growth, added PIB.

Challenges remain

Despite these positive trends, challenges remain. A report by Morgan Stanley suggests that India needs to achieve an average annual GDP growth rate of 12.2 per cent to effectively tackle the issue of underemployment, where individuals are employed in jobs that do not fully utilise their skills. 

In summary, India's labour market has experienced significant growth over the past six years, with substantial increases in employment and declines in unemployment rates. While these developments are promising, addressing the skill mismatch and ensuring sustainable employment opportunities remain key challenges for the future.