Employment and Skill Development: Existential Priorities | Economic Survey & Government Reports - UPSC PDF Download

 Page 4


Economic Survey 2024-25
364
12.5.  Against this backdrop, this chapter analyses the employment and skill 
development trends and challenges in the economy. The first section delves into the 
state of employment, focusing on the sectoral and gender distribution of the workforce 
and state-wise trends. The second section focuses on job creation and outlines the 
government's actions to enhance employment opportunities. It highlights initiatives 
such as labour law reforms, potential sectors for job creation, and the role of skill 
development.  The challenge of re-strategising the skills development framework to 
prepare the youth for evolving industry requirements domestically and internationally 
is discussed in the third section. 
STATE OF EMPLOYMENT
12.6.  India has experienced good employment growth in recent years, following the 
nation's sustained economic momentum. The 2023-24 annual Periodic Labour Force 
Survey (PLFS) report by the National Statistical Organisation (NSO) highlights a 
significant post-pandemic recovery in employment trends across India.
8
 The all-India 
annual unemployment rate (UR) for individuals aged 15 years and above (usual status)
9
  has steadily declined from 6 per cent in 2017-18 to 3.2 per cent in 2023-24.
10
 This 
recovery has been accompanied by an increase in the labour force participation rate 
(LFPR) and the worker-to-population ratio (WPR).
11
 Moreover, even under the stricter 
current weekly status (CWS) criteria, employment levels have rebounded strongly in 
both urban and rural areas, reflecting a broad-based recovery since the COVID-19 
pandemic.
12
12.7.  In addition, the quarterly urban unemployment rate (UR) for people aged 15 years 
and above has shown improvement. The urban UR has dropped from 6.6 per cent in Q2 
FY 24 to 6.4 per cent in Q2 FY 25. This positive shift aligns with a broader strengthening 
of workforce metrics in urban areas, as the LFPR increased from 49.3 per cent to 50.4 
per cent, and the WPR rose from 46 per cent to 47.2 per cent during the same period 
(Q2 of FY24 to Q2 FY25).
13
8  https://tinyurl.com/yaykmtat ; The period of the PLFS surveys is July-June. For example the survey period for 
2023-24 is July 2023 to June 2024.
9   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.
10   UR is defined as the percentage of unemployed persons in the labour force.
11   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. WPR is defined as the percentage of employed persons in the total population.
12   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.
13  https://tinyurl.com/2myhmmed, Quarterly PLFS, MoSPI
Page 5


Economic Survey 2024-25
364
12.5.  Against this backdrop, this chapter analyses the employment and skill 
development trends and challenges in the economy. The first section delves into the 
state of employment, focusing on the sectoral and gender distribution of the workforce 
and state-wise trends. The second section focuses on job creation and outlines the 
government's actions to enhance employment opportunities. It highlights initiatives 
such as labour law reforms, potential sectors for job creation, and the role of skill 
development.  The challenge of re-strategising the skills development framework to 
prepare the youth for evolving industry requirements domestically and internationally 
is discussed in the third section. 
STATE OF EMPLOYMENT
12.6.  India has experienced good employment growth in recent years, following the 
nation's sustained economic momentum. The 2023-24 annual Periodic Labour Force 
Survey (PLFS) report by the National Statistical Organisation (NSO) highlights a 
significant post-pandemic recovery in employment trends across India.
8
 The all-India 
annual unemployment rate (UR) for individuals aged 15 years and above (usual status)
9
  has steadily declined from 6 per cent in 2017-18 to 3.2 per cent in 2023-24.
10
 This 
recovery has been accompanied by an increase in the labour force participation rate 
(LFPR) and the worker-to-population ratio (WPR).
11
 Moreover, even under the stricter 
current weekly status (CWS) criteria, employment levels have rebounded strongly in 
both urban and rural areas, reflecting a broad-based recovery since the COVID-19 
pandemic.
12
12.7.  In addition, the quarterly urban unemployment rate (UR) for people aged 15 years 
and above has shown improvement. The urban UR has dropped from 6.6 per cent in Q2 
FY 24 to 6.4 per cent in Q2 FY 25. This positive shift aligns with a broader strengthening 
of workforce metrics in urban areas, as the LFPR increased from 49.3 per cent to 50.4 
per cent, and the WPR rose from 46 per cent to 47.2 per cent during the same period 
(Q2 of FY24 to Q2 FY25).
13
8  https://tinyurl.com/yaykmtat ; The period of the PLFS surveys is July-June. For example the survey period for 
2023-24 is July 2023 to June 2024.
9   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.
10   UR is defined as the percentage of unemployed persons in the labour force.
11   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. WPR is defined as the percentage of employed persons in the total population.
12   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.
13  https://tinyurl.com/2myhmmed, Quarterly PLFS, MoSPI