India has witnessed a significant improvement in its employment scenario, with unemployment rate (UR) for individuals aged 15 years and above dropping from 6% in 2017-18 to 3.2% in 2023-24, according to Union Minister of State for Labour and Employment, Shobha Karandlaje. Minister presented these findings in a written response to Rajya Sabha on Thursday.
In addition to decline in unemployment, Worker Population Ratio (WPR), which measures proportion of employed people in working-age population, has increased from 46.8% in 2017-18 to 58.2% in 2023-24. This rise underscores a positive shift in India’s employment landscape.
Key Employment Trends
- Decline in Unemployment:
- unemployment rate dropped by 2.8 percentage points over past seven years, signifying robust improvements in job availability.
- Growth in Worker Population Ratio:
- WPR grew from 46.8% to 58.2%, marking a notable rise in workforce participation.
- Increase in Informal Sector Employment:
- Annual Survey of Unincorporated Sector Enterprises (ASUSE) indicated a surge in employment in unincorporated non-agricultural sector, with number of workers rising from 9.79 crore in 2021-22 to 10.96 crore in 2022-23.
- Formal Job Creation through EPFO:
- Over 7 crore net subscribers joined Employees’ Provident Fund Organisation (EPFO) from September 2017 to September 2024, signifying an expanding formal job market.
- Overall Employment Growth:
- Employment figures based on KLEMS database showed an increase from 47.15 crore workers in 2014-15 to 64.33 crore in 2023-24, reflecting a rise of 17.18 crore workers over nine years.
Employment Data Highlights
| Indicator | 2017-18 | 2023-24 | Change |
| Unemployment Rate (UR) | 6% | 3.2% | -2.8 percentage points |
| Worker Population Ratio (WPR) | 46.8% | 58.2% | +11.4 percentage points |
| Unincorporated Sector Workers | 9.79 crore | 10.96 crore | +1.17 crore |
| EPFO Net Subscribers (Cumulative) | – | 7 crore | – |
| Overall Employment | 47.15 crore | 64.33 crore | +17.18 crore |
Government Schemes Driving Employment
Minister highlighted several flagship schemes contributing to employment growth:
- Prime Minister’s Employment Generation Programme (PMEGP):
- Provides financial assistance for self-employment and entrepreneurship.
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS):
- Offers guaranteed wage employment in rural areas, ensuring job security for marginalized communities.
- Pradhan Mantri Mudra Yojana (PMMY):
- Facilitates credit support for micro and small enterprises, enabling job creation in rural and urban regions.
- Skill Development Initiatives:
- Programs aimed at enhancing youth employability through vocational training.
- Union Budget 2024-25 Employment Package:
- Announced a Rs. 2 lakh crore package to create employment opportunities and support skill development for 4.1 crore youth over five years.
Steps to Address Challenges
Despite positive developments, challenges such as skill gaps and underemployment remain. government has directed various ministries to streamline recruitment processes and enhance workforce training. Emphasis is being placed on:
- Digital literacy programs.
- Sector-specific skill enhancement initiatives.
- Start-up incubation and entrepreneurship support.
Broader Economic Impact
improvements in employment indicators align with India’s robust economic performance and infrastructure development, with notable progress in manufacturing, trade, and services sectors. Programs like Production-Linked Incentive (PLI) scheme and investments in infrastructure projects are expected to sustain this positive trend.
Disclaimer
This article on “India’s Unemployment Rate Drops from 6% to 3.2%, Says Minister” is based on data presented in official government reports and reliable sources. While every effort has been made to ensure accuracy of information, readers are advised to independently verify data and statistics for any critical analysis or decision-making. This article is for informational purposes only.
