Employment and Skill Development: Towards Quality | Indian Economy for UPSC CSE PDF Download

 Page 1


CHAPTER
08
EMPLOYMENT AND SKILL 
DEVELOPMENT: TOWARDS 
QUALITY
Indian labour market indicators have improved in the last six years, as per the Periodic 
Labour Force Survey data, with the unemployment rate declining to 3.2 per cent in 
2022-23. Rising youth and female participation in the workforce present an opportunity 
to tap the demographic and gender dividend. The factory employment data exhibits 
the bounce-back of the organised manufacturing sector in FY22, with continued rise 
in employment and the upscaling of factories. The net payroll additions under EPFO 
have more than doubled in the past five years, signalling healthy growth in formal 
employment. With artificial intelligence taking roots in several spheres of economic 
activity, job market must adapt while steering the technological choices towards 
collective welfare is key. To generate and sustain quality employment, agro-processing 
and care economy are two promising candidates, the latter also being a necessity for 
levelling the playing field for women in labour market. The fillip to skilling has yielded 
progress while there remains scope for more, as only 4.4 per cent of young workforce is 
formally skilled. Many regulatory clean-ups pose as low-hanging fruits of employment 
generation, including multiple state-level laws relating to use of land, sectors restricted 
for women workers, and apprenticeship promotion.
INTRODUCTION
8.1 Employment is the crucial link between growth and prosperity, and its quantity and 
quality determine the extent to which economic output translates into better quality of life for 
the population. To foster employment is to oil the engine of demand-led growth, kept running 
by a populace progressively less dependent on the Government for its dignified survival 
and sustenance. Generation of suitable employment opportunities, commensurate with the 
legitimate aspirations of India’s youth, is also necessary to reap the country’s once-in-a-lifetime 
demographic dividend.
8.2 This chapter explores various aspects of employment and skill development in the country. 
The first section dwells on the employment situation in the country, specifically focussing on 
women and youth employment. The structural transformation of the workforce and the trend 
Page 2


CHAPTER
08
EMPLOYMENT AND SKILL 
DEVELOPMENT: TOWARDS 
QUALITY
Indian labour market indicators have improved in the last six years, as per the Periodic 
Labour Force Survey data, with the unemployment rate declining to 3.2 per cent in 
2022-23. Rising youth and female participation in the workforce present an opportunity 
to tap the demographic and gender dividend. The factory employment data exhibits 
the bounce-back of the organised manufacturing sector in FY22, with continued rise 
in employment and the upscaling of factories. The net payroll additions under EPFO 
have more than doubled in the past five years, signalling healthy growth in formal 
employment. With artificial intelligence taking roots in several spheres of economic 
activity, job market must adapt while steering the technological choices towards 
collective welfare is key. To generate and sustain quality employment, agro-processing 
and care economy are two promising candidates, the latter also being a necessity for 
levelling the playing field for women in labour market. The fillip to skilling has yielded 
progress while there remains scope for more, as only 4.4 per cent of young workforce is 
formally skilled. Many regulatory clean-ups pose as low-hanging fruits of employment 
generation, including multiple state-level laws relating to use of land, sectors restricted 
for women workers, and apprenticeship promotion.
INTRODUCTION
8.1 Employment is the crucial link between growth and prosperity, and its quantity and 
quality determine the extent to which economic output translates into better quality of life for 
the population. To foster employment is to oil the engine of demand-led growth, kept running 
by a populace progressively less dependent on the Government for its dignified survival 
and sustenance. Generation of suitable employment opportunities, commensurate with the 
legitimate aspirations of India’s youth, is also necessary to reap the country’s once-in-a-lifetime 
demographic dividend.
8.2 This chapter explores various aspects of employment and skill development in the country. 
The first section dwells on the employment situation in the country, specifically focussing on 
women and youth employment. The structural transformation of the workforce and the trend 
Economic Survey 2023-24
272
in factory employment are discussed, besides additions to EPFO’s payroll and trend in rural 
wages. It also presents a bird’s eye view of the government programmes to facilitate employment 
generation and promote labour welfare. The second section looks at the new forces shaping 
the labour market, including Artificial Intelligence (AI), gig work, climate change, etc. this is 
followed by an in-house simple estimation of the annual rise in job creation required to cater to 
the expanding working age population, rising female participation in labour force, and labour 
shifting out of agriculture. Next, agro-processing sector is proposed as a fertile sector for job 
creation in a pragmatic and decentralised manner. The next section discusses the felt need of a 
well-developed care economy, key to supporting workforce participation by women, and cater 
to an ageing population. The final section presents details of the country’s skilling infrastructure 
and the outcomes of policies in enhancing skilling for employability. 
CURRENT EMPLOYMENT SCENARIO
8.3 Over the past decade, India has witnessed a notable transformation in its employment 
landscape, marked by several positive trends contributing to economic growth and social 
development. This evolution is a result of various factors, including economic reforms, 
technological advancements, and an emphasis on skill development. The slew of structural 
reforms promoting ease of doing business, undertaken in the last decade and ongoing, remain 
crucial for productive employment generation in the current decade.
8.4 According to the annual Periodic Labour Force Survey (PLFS) by the National Statistical 
Organisation, Ministry of Statistics and Programme Implementation (MoSPI), the all-India 
annual unemployment rate (UR)
1
 (persons aged 15 years and above, as per usual status
2
) has 
been witnessing a declining trend since the COVID-19 pandemic. This has been accompanied 
by a rise in the labour force participation rate (LFPR)
3
 and worker-to-population ratio (WPR)
4
. 
Even by the relatively strict standards of current weekly status (CWS)
5
, employment has 
recovered from the pandemic in urban and rural areas. 
8.5 The quarterly PLFS reports for urban areas enable a more updated picture of employment. 
The quarterly urban unemployment rate for people aged 15 years and above declined to 6.7 per 
cent in the quarter ending March 2024 from 6.8 per cent in the corresponding quarter of the 
previous year, accompanied by a rise in the WPR and LFPR (Chart VIII.2).
1  UR is defined as the percentage of unemployed persons in the labour force.
2  For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued an economic 
activity for at least 30 days during the 365 days preceding the date of the survey.
3  According to the PLFS, LFPR is the percentage of working-age population engaged in work or making tangible 
efforts to seek ‘work’ or being available for ‘work’ if it is available. ‘Work’ includes self-employment (subsistence 
agriculture and collection of firewood, poultry farming, etc., for self-consumption), regular wage/salaried 
employment, and casual labour.
4  WPR is defined as the percentage of employed persons in the total population.
5  In the case of CWS, the activity status is determined on the basis of a reference period of the last 7 days preceding 
the date of the survey
Page 3


CHAPTER
08
EMPLOYMENT AND SKILL 
DEVELOPMENT: TOWARDS 
QUALITY
Indian labour market indicators have improved in the last six years, as per the Periodic 
Labour Force Survey data, with the unemployment rate declining to 3.2 per cent in 
2022-23. Rising youth and female participation in the workforce present an opportunity 
to tap the demographic and gender dividend. The factory employment data exhibits 
the bounce-back of the organised manufacturing sector in FY22, with continued rise 
in employment and the upscaling of factories. The net payroll additions under EPFO 
have more than doubled in the past five years, signalling healthy growth in formal 
employment. With artificial intelligence taking roots in several spheres of economic 
activity, job market must adapt while steering the technological choices towards 
collective welfare is key. To generate and sustain quality employment, agro-processing 
and care economy are two promising candidates, the latter also being a necessity for 
levelling the playing field for women in labour market. The fillip to skilling has yielded 
progress while there remains scope for more, as only 4.4 per cent of young workforce is 
formally skilled. Many regulatory clean-ups pose as low-hanging fruits of employment 
generation, including multiple state-level laws relating to use of land, sectors restricted 
for women workers, and apprenticeship promotion.
INTRODUCTION
8.1 Employment is the crucial link between growth and prosperity, and its quantity and 
quality determine the extent to which economic output translates into better quality of life for 
the population. To foster employment is to oil the engine of demand-led growth, kept running 
by a populace progressively less dependent on the Government for its dignified survival 
and sustenance. Generation of suitable employment opportunities, commensurate with the 
legitimate aspirations of India’s youth, is also necessary to reap the country’s once-in-a-lifetime 
demographic dividend.
8.2 This chapter explores various aspects of employment and skill development in the country. 
The first section dwells on the employment situation in the country, specifically focussing on 
women and youth employment. The structural transformation of the workforce and the trend 
Economic Survey 2023-24
272
in factory employment are discussed, besides additions to EPFO’s payroll and trend in rural 
wages. It also presents a bird’s eye view of the government programmes to facilitate employment 
generation and promote labour welfare. The second section looks at the new forces shaping 
the labour market, including Artificial Intelligence (AI), gig work, climate change, etc. this is 
followed by an in-house simple estimation of the annual rise in job creation required to cater to 
the expanding working age population, rising female participation in labour force, and labour 
shifting out of agriculture. Next, agro-processing sector is proposed as a fertile sector for job 
creation in a pragmatic and decentralised manner. The next section discusses the felt need of a 
well-developed care economy, key to supporting workforce participation by women, and cater 
to an ageing population. The final section presents details of the country’s skilling infrastructure 
and the outcomes of policies in enhancing skilling for employability. 
CURRENT EMPLOYMENT SCENARIO
8.3 Over the past decade, India has witnessed a notable transformation in its employment 
landscape, marked by several positive trends contributing to economic growth and social 
development. This evolution is a result of various factors, including economic reforms, 
technological advancements, and an emphasis on skill development. The slew of structural 
reforms promoting ease of doing business, undertaken in the last decade and ongoing, remain 
crucial for productive employment generation in the current decade.
8.4 According to the annual Periodic Labour Force Survey (PLFS) by the National Statistical 
Organisation, Ministry of Statistics and Programme Implementation (MoSPI), the all-India 
annual unemployment rate (UR)
1
 (persons aged 15 years and above, as per usual status
2
) has 
been witnessing a declining trend since the COVID-19 pandemic. This has been accompanied 
by a rise in the labour force participation rate (LFPR)
3
 and worker-to-population ratio (WPR)
4
. 
Even by the relatively strict standards of current weekly status (CWS)
5
, employment has 
recovered from the pandemic in urban and rural areas. 
8.5 The quarterly PLFS reports for urban areas enable a more updated picture of employment. 
The quarterly urban unemployment rate for people aged 15 years and above declined to 6.7 per 
cent in the quarter ending March 2024 from 6.8 per cent in the corresponding quarter of the 
previous year, accompanied by a rise in the WPR and LFPR (Chart VIII.2).
1  UR is defined as the percentage of unemployed persons in the labour force.
2  For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued an economic 
activity for at least 30 days during the 365 days preceding the date of the survey.
3  According to the PLFS, LFPR is the percentage of working-age population engaged in work or making tangible 
efforts to seek ‘work’ or being available for ‘work’ if it is available. ‘Work’ includes self-employment (subsistence 
agriculture and collection of firewood, poultry farming, etc., for self-consumption), regular wage/salaried 
employment, and casual labour.
4  WPR is defined as the percentage of employed persons in the total population.
5  In the case of CWS, the activity status is determined on the basis of a reference period of the last 7 days preceding 
the date of the survey
Employment and Skill Development
273
Chart VIII.1: Improving annual labour market indicators (July-June period)
(a) Usual status, aged 15 years and above
 
49.8 50.2
53.5
54.9 55.2
57.9
46.8
47.3
50.9
52.6 52.9
56.0
6.0 5.8
4.8
4.2 4.1
3.2
0
10
20
30
40
50
60
70
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
(b) Current Weekly status, aged 15 years and above
 
48.4 48.5
51.2
51.8 51.7
54.6
44.1 44.3
46.7
47.9 48.3
51.8
8.7 8.7 8.8
7.5
6.6
5.1
0
10
20
30
40
50
60
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
Source: PLFS, MoSPI
Note: Figures for ages 15 years and above, the period of the survey for 2022-23 is July 2023 to June 2024, 
and likewise for other years.
Page 4


CHAPTER
08
EMPLOYMENT AND SKILL 
DEVELOPMENT: TOWARDS 
QUALITY
Indian labour market indicators have improved in the last six years, as per the Periodic 
Labour Force Survey data, with the unemployment rate declining to 3.2 per cent in 
2022-23. Rising youth and female participation in the workforce present an opportunity 
to tap the demographic and gender dividend. The factory employment data exhibits 
the bounce-back of the organised manufacturing sector in FY22, with continued rise 
in employment and the upscaling of factories. The net payroll additions under EPFO 
have more than doubled in the past five years, signalling healthy growth in formal 
employment. With artificial intelligence taking roots in several spheres of economic 
activity, job market must adapt while steering the technological choices towards 
collective welfare is key. To generate and sustain quality employment, agro-processing 
and care economy are two promising candidates, the latter also being a necessity for 
levelling the playing field for women in labour market. The fillip to skilling has yielded 
progress while there remains scope for more, as only 4.4 per cent of young workforce is 
formally skilled. Many regulatory clean-ups pose as low-hanging fruits of employment 
generation, including multiple state-level laws relating to use of land, sectors restricted 
for women workers, and apprenticeship promotion.
INTRODUCTION
8.1 Employment is the crucial link between growth and prosperity, and its quantity and 
quality determine the extent to which economic output translates into better quality of life for 
the population. To foster employment is to oil the engine of demand-led growth, kept running 
by a populace progressively less dependent on the Government for its dignified survival 
and sustenance. Generation of suitable employment opportunities, commensurate with the 
legitimate aspirations of India’s youth, is also necessary to reap the country’s once-in-a-lifetime 
demographic dividend.
8.2 This chapter explores various aspects of employment and skill development in the country. 
The first section dwells on the employment situation in the country, specifically focussing on 
women and youth employment. The structural transformation of the workforce and the trend 
Economic Survey 2023-24
272
in factory employment are discussed, besides additions to EPFO’s payroll and trend in rural 
wages. It also presents a bird’s eye view of the government programmes to facilitate employment 
generation and promote labour welfare. The second section looks at the new forces shaping 
the labour market, including Artificial Intelligence (AI), gig work, climate change, etc. this is 
followed by an in-house simple estimation of the annual rise in job creation required to cater to 
the expanding working age population, rising female participation in labour force, and labour 
shifting out of agriculture. Next, agro-processing sector is proposed as a fertile sector for job 
creation in a pragmatic and decentralised manner. The next section discusses the felt need of a 
well-developed care economy, key to supporting workforce participation by women, and cater 
to an ageing population. The final section presents details of the country’s skilling infrastructure 
and the outcomes of policies in enhancing skilling for employability. 
CURRENT EMPLOYMENT SCENARIO
8.3 Over the past decade, India has witnessed a notable transformation in its employment 
landscape, marked by several positive trends contributing to economic growth and social 
development. This evolution is a result of various factors, including economic reforms, 
technological advancements, and an emphasis on skill development. The slew of structural 
reforms promoting ease of doing business, undertaken in the last decade and ongoing, remain 
crucial for productive employment generation in the current decade.
8.4 According to the annual Periodic Labour Force Survey (PLFS) by the National Statistical 
Organisation, Ministry of Statistics and Programme Implementation (MoSPI), the all-India 
annual unemployment rate (UR)
1
 (persons aged 15 years and above, as per usual status
2
) has 
been witnessing a declining trend since the COVID-19 pandemic. This has been accompanied 
by a rise in the labour force participation rate (LFPR)
3
 and worker-to-population ratio (WPR)
4
. 
Even by the relatively strict standards of current weekly status (CWS)
5
, employment has 
recovered from the pandemic in urban and rural areas. 
8.5 The quarterly PLFS reports for urban areas enable a more updated picture of employment. 
The quarterly urban unemployment rate for people aged 15 years and above declined to 6.7 per 
cent in the quarter ending March 2024 from 6.8 per cent in the corresponding quarter of the 
previous year, accompanied by a rise in the WPR and LFPR (Chart VIII.2).
1  UR is defined as the percentage of unemployed persons in the labour force.
2  For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued an economic 
activity for at least 30 days during the 365 days preceding the date of the survey.
3  According to the PLFS, LFPR is the percentage of working-age population engaged in work or making tangible 
efforts to seek ‘work’ or being available for ‘work’ if it is available. ‘Work’ includes self-employment (subsistence 
agriculture and collection of firewood, poultry farming, etc., for self-consumption), regular wage/salaried 
employment, and casual labour.
4  WPR is defined as the percentage of employed persons in the total population.
5  In the case of CWS, the activity status is determined on the basis of a reference period of the last 7 days preceding 
the date of the survey
Employment and Skill Development
273
Chart VIII.1: Improving annual labour market indicators (July-June period)
(a) Usual status, aged 15 years and above
 
49.8 50.2
53.5
54.9 55.2
57.9
46.8
47.3
50.9
52.6 52.9
56.0
6.0 5.8
4.8
4.2 4.1
3.2
0
10
20
30
40
50
60
70
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
(b) Current Weekly status, aged 15 years and above
 
48.4 48.5
51.2
51.8 51.7
54.6
44.1 44.3
46.7
47.9 48.3
51.8
8.7 8.7 8.8
7.5
6.6
5.1
0
10
20
30
40
50
60
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
Source: PLFS, MoSPI
Note: Figures for ages 15 years and above, the period of the survey for 2022-23 is July 2023 to June 2024, 
and likewise for other years.
Economic Survey 2023-24
274
Chart VIII.2: Declining quarterly urban unemployment rate
 
50.2
6.7
0
5
10
15
20
25
43
44
45
46
47
48
49
50
51
Apr-Jun 2018
Jul-Sep 2018
Oct-Dec 2018
Jan-Mar 2019
Apr-Jun 2019
Jul-Sep 2019
Oct-Dec 2019
Jan-Mar 2020
Apr-Jun 2020
Jul-Sep 2020
Oct-Dec 2020
Jan-Mar 2021
Apr-Jun 2021
Jul-Sep 2021
Oct-Dec 2021
Jan-Mar 2022
Apr-Jun 2022
Jul-Sep 2022
Oct-Dec 2022
Jan-Mar 2023
Apr-Jun 2023
Jul-Sep 2023
Oct-Dec 2023
Jan-Mar 2024
per cent
per cent
LFPR UR (RHS)
Source: Quarterly PLFS, MoSPI
Note: Figures for Current Weekly Status, 15 years and above
8.6 India’s workforce is estimated to be nearly 56.5 crore in 2022-23 using WPR from PLFS and 
MoHFW's population projections. According to PLFS, more than 45 per cent of the workforce 
is employed in agriculture, 11.4 per cent in manufacturing, 28.9 per cent in services, and 13.0 
per cent is in construction. The predominance of agriculture in the providing employment to 
nearly half of the population, especially females, is both a challenge and an opportunity, as 
explained in the section on agro-processing in this chapter.
Chart VIII.3: Distribution of workers by broad industry divisions, 2022-23
 
49.1
76.2
58.4
4.7
11.7
6.4
37.1
64.3
45.8
11.4
13.0
12.1
5.4
7.0 6.9 7.0
20.6
40.1
25.3
10.7
13.0 11.4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Male Female Person Male Female Person Male Female Person
Rural Urban Rural+Urban
percentage of total
Agriculture Manufacturing Construction
Trade, hotel & Restaurant Transport, storage & communication Other services
Source: Annual PLFS report 2022-23, MoSPI
Note: The ‘other services’ category includes activities belonging to publishing, consultancy services, information 
services, financial and insurance services, real estate, legal and accounting, advertising, health and education 
services, tours and travels, arts, entertainment and recreation, etc.
Page 5


CHAPTER
08
EMPLOYMENT AND SKILL 
DEVELOPMENT: TOWARDS 
QUALITY
Indian labour market indicators have improved in the last six years, as per the Periodic 
Labour Force Survey data, with the unemployment rate declining to 3.2 per cent in 
2022-23. Rising youth and female participation in the workforce present an opportunity 
to tap the demographic and gender dividend. The factory employment data exhibits 
the bounce-back of the organised manufacturing sector in FY22, with continued rise 
in employment and the upscaling of factories. The net payroll additions under EPFO 
have more than doubled in the past five years, signalling healthy growth in formal 
employment. With artificial intelligence taking roots in several spheres of economic 
activity, job market must adapt while steering the technological choices towards 
collective welfare is key. To generate and sustain quality employment, agro-processing 
and care economy are two promising candidates, the latter also being a necessity for 
levelling the playing field for women in labour market. The fillip to skilling has yielded 
progress while there remains scope for more, as only 4.4 per cent of young workforce is 
formally skilled. Many regulatory clean-ups pose as low-hanging fruits of employment 
generation, including multiple state-level laws relating to use of land, sectors restricted 
for women workers, and apprenticeship promotion.
INTRODUCTION
8.1 Employment is the crucial link between growth and prosperity, and its quantity and 
quality determine the extent to which economic output translates into better quality of life for 
the population. To foster employment is to oil the engine of demand-led growth, kept running 
by a populace progressively less dependent on the Government for its dignified survival 
and sustenance. Generation of suitable employment opportunities, commensurate with the 
legitimate aspirations of India’s youth, is also necessary to reap the country’s once-in-a-lifetime 
demographic dividend.
8.2 This chapter explores various aspects of employment and skill development in the country. 
The first section dwells on the employment situation in the country, specifically focussing on 
women and youth employment. The structural transformation of the workforce and the trend 
Economic Survey 2023-24
272
in factory employment are discussed, besides additions to EPFO’s payroll and trend in rural 
wages. It also presents a bird’s eye view of the government programmes to facilitate employment 
generation and promote labour welfare. The second section looks at the new forces shaping 
the labour market, including Artificial Intelligence (AI), gig work, climate change, etc. this is 
followed by an in-house simple estimation of the annual rise in job creation required to cater to 
the expanding working age population, rising female participation in labour force, and labour 
shifting out of agriculture. Next, agro-processing sector is proposed as a fertile sector for job 
creation in a pragmatic and decentralised manner. The next section discusses the felt need of a 
well-developed care economy, key to supporting workforce participation by women, and cater 
to an ageing population. The final section presents details of the country’s skilling infrastructure 
and the outcomes of policies in enhancing skilling for employability. 
CURRENT EMPLOYMENT SCENARIO
8.3 Over the past decade, India has witnessed a notable transformation in its employment 
landscape, marked by several positive trends contributing to economic growth and social 
development. This evolution is a result of various factors, including economic reforms, 
technological advancements, and an emphasis on skill development. The slew of structural 
reforms promoting ease of doing business, undertaken in the last decade and ongoing, remain 
crucial for productive employment generation in the current decade.
8.4 According to the annual Periodic Labour Force Survey (PLFS) by the National Statistical 
Organisation, Ministry of Statistics and Programme Implementation (MoSPI), the all-India 
annual unemployment rate (UR)
1
 (persons aged 15 years and above, as per usual status
2
) has 
been witnessing a declining trend since the COVID-19 pandemic. This has been accompanied 
by a rise in the labour force participation rate (LFPR)
3
 and worker-to-population ratio (WPR)
4
. 
Even by the relatively strict standards of current weekly status (CWS)
5
, employment has 
recovered from the pandemic in urban and rural areas. 
8.5 The quarterly PLFS reports for urban areas enable a more updated picture of employment. 
The quarterly urban unemployment rate for people aged 15 years and above declined to 6.7 per 
cent in the quarter ending March 2024 from 6.8 per cent in the corresponding quarter of the 
previous year, accompanied by a rise in the WPR and LFPR (Chart VIII.2).
1  UR is defined as the percentage of unemployed persons in the labour force.
2  For a person to be categorised as employed as per usual status (ps+ss), he/she must have pursued an economic 
activity for at least 30 days during the 365 days preceding the date of the survey.
3  According to the PLFS, LFPR is the percentage of working-age population engaged in work or making tangible 
efforts to seek ‘work’ or being available for ‘work’ if it is available. ‘Work’ includes self-employment (subsistence 
agriculture and collection of firewood, poultry farming, etc., for self-consumption), regular wage/salaried 
employment, and casual labour.
4  WPR is defined as the percentage of employed persons in the total population.
5  In the case of CWS, the activity status is determined on the basis of a reference period of the last 7 days preceding 
the date of the survey
Employment and Skill Development
273
Chart VIII.1: Improving annual labour market indicators (July-June period)
(a) Usual status, aged 15 years and above
 
49.8 50.2
53.5
54.9 55.2
57.9
46.8
47.3
50.9
52.6 52.9
56.0
6.0 5.8
4.8
4.2 4.1
3.2
0
10
20
30
40
50
60
70
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
(b) Current Weekly status, aged 15 years and above
 
48.4 48.5
51.2
51.8 51.7
54.6
44.1 44.3
46.7
47.9 48.3
51.8
8.7 8.7 8.8
7.5
6.6
5.1
0
10
20
30
40
50
60
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
LFPR WPR UR
per cent
Source: PLFS, MoSPI
Note: Figures for ages 15 years and above, the period of the survey for 2022-23 is July 2023 to June 2024, 
and likewise for other years.
Economic Survey 2023-24
274
Chart VIII.2: Declining quarterly urban unemployment rate
 
50.2
6.7
0
5
10
15
20
25
43
44
45
46
47
48
49
50
51
Apr-Jun 2018
Jul-Sep 2018
Oct-Dec 2018
Jan-Mar 2019
Apr-Jun 2019
Jul-Sep 2019
Oct-Dec 2019
Jan-Mar 2020
Apr-Jun 2020
Jul-Sep 2020
Oct-Dec 2020
Jan-Mar 2021
Apr-Jun 2021
Jul-Sep 2021
Oct-Dec 2021
Jan-Mar 2022
Apr-Jun 2022
Jul-Sep 2022
Oct-Dec 2022
Jan-Mar 2023
Apr-Jun 2023
Jul-Sep 2023
Oct-Dec 2023
Jan-Mar 2024
per cent
per cent
LFPR UR (RHS)
Source: Quarterly PLFS, MoSPI
Note: Figures for Current Weekly Status, 15 years and above
8.6 India’s workforce is estimated to be nearly 56.5 crore in 2022-23 using WPR from PLFS and 
MoHFW's population projections. According to PLFS, more than 45 per cent of the workforce 
is employed in agriculture, 11.4 per cent in manufacturing, 28.9 per cent in services, and 13.0 
per cent is in construction. The predominance of agriculture in the providing employment to 
nearly half of the population, especially females, is both a challenge and an opportunity, as 
explained in the section on agro-processing in this chapter.
Chart VIII.3: Distribution of workers by broad industry divisions, 2022-23
 
49.1
76.2
58.4
4.7
11.7
6.4
37.1
64.3
45.8
11.4
13.0
12.1
5.4
7.0 6.9 7.0
20.6
40.1
25.3
10.7
13.0 11.4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Male Female Person Male Female Person Male Female Person
Rural Urban Rural+Urban
percentage of total
Agriculture Manufacturing Construction
Trade, hotel & Restaurant Transport, storage & communication Other services
Source: Annual PLFS report 2022-23, MoSPI
Note: The ‘other services’ category includes activities belonging to publishing, consultancy services, information 
services, financial and insurance services, real estate, legal and accounting, advertising, health and education 
services, tours and travels, arts, entertainment and recreation, etc.
Employment and Skill Development
275
8.7 In terms of employment status of workers, 57.3 per cent of the total workforce is self-
employed, and 18.3 per cent is working as unpaid workers in household enterprises. Casual 
labour comprises 21.8 per cent of the total workforce and regular wage/salaried workers are 
20.9 per cent of the total workforce. Gender-wise, it is the female workforce, which is shifting to 
self-employment, while the male workforce’s share has been stable. This is evident in the sharp 
rise in female LFPR in the past six years (discussed in later in this chapter), driven by rural 
women joining agriculture and related activities.
Chart VIII.4: Trend in broad category wise employment status
 
52.2
22.8
24.9
52.1
23.8 24.1
53.5
22.9
23.6
55.6
21.1
23.3
55.8
21.5
22.7
57.3
20.9
21.8
Self employed Regular wage/salary Casual labour
Percentage of total workforce
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Chart VIII.5: Share of female workforce in self-employment
 
19.0
27.9
23.7
27.6
38.7
43.1
11.0
12.8
57.7
71.0
34.7
40.4
0
20
40
60
80
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Rural Female Urban Female
percentage of total
Own account worker and employer Helper in household enterprise All self employed
Source: Annual PLFS reports, MoSPI