Building the workforce: India adds 17 crore jobs in 6 years

India’s demographic dividend, coupled with its rapidly digitised and globalised economy, positions it as a primary engine of growth. According to the World Economic Forum’s Future of Jobs Report 2025, India will supply nearly two-thirds of new workforce entrants in the coming year.

According to the Ministry of Labour and Employment, employment rose from 47.5 crore in 2017-18 to 64.33 crore in 2023-24, reflecting the government’s focus on youth-centric policies under the Viksit Bharat vision. Employment is a key measure of development, as higher job levels strengthen the economy, stimulate consumption, and promote social stability.

India’s workforce on the move The Periodic Labour Force Survey (PLFS) tracks labour trends, including Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and unemployment. Between June and August 2025, LFPR rose from 54.2% to 55%, and WPR increased from 51.2% to 52.2%. Since 2017-18, LFPR for those aged 15+ rose from 49.8% to 60.1%, and WPR from 46.8% to 58.2%.

Sectorally, rural employment is dominated by agriculture, while the tertiary sector leads in urban areas. On average, 56.4 crore persons were employed in April-June 2025, including 39.7 crore men and 16.7 crore women.

Formal employment and wages EPFO net subscribers increased to 1.29 crore in 2024-25, indicating growing formalisation. Self-employment rose from 52.2% in 2017-18 to 58.4%, while casual labour fell from 24.9% to 19.8%. Average wages for casual labourers rose from ₹294 to ₹433, and salaried workers’ earnings increased from ₹16,538 to ₹21,103, reflecting better income and job stability.

Unemployment trends The overall unemployment rate declined to 3.2% in 2023-24. Youth unemployment fell from 17.8% to 10.2%, below the global average of 13.3%. Male unemployment (15+) dropped to 5% in August 2025, with rural unemployment steadily declining over three months.

Women leading the workforce Women’s workforce participation has nearly doubled, with LFPR rising from 23.3% in 2017-18 to 41.7% in 2023-24, and WPR from 22% to 40.3%. EPFO data shows 26.9 lakh net female subscribers added in 2024-25, highlighting a more inclusive workforce.

Emerging opportunities

• New industries: Healthcare tech, e-commerce logistics, fintech, ed-tech, digital economy, and renewable energy are creating diverse jobs.

• Gig economy: Expected to grow from 1 crore in 2024-25 to 2.35 crore by 2029-30, supported by government policies and platforms like e-Shram.

• Startups & GCCs: India has 1.9 lakh DPIIT-recognized startups generating over 17 lakh jobs and 118 unicorns. GCCs employ over two million people, with numbers rising.

Government initiatives

• Skill India & ITI upgradation: Skilling, upskilling, and vocational training for youth.

• Rozgar Mela & ELI scheme: Connecting youth to jobs and incentivising job creation.

• MGNREGA: Provides guaranteed rural employment with Rs 86,000 crore allocation in FY 2025-26.

• Women-focused programs: Namo Drone Didi, Mission Shakti, Lakhpati Didi, Bank Sakhi, and other initiatives empower women economically and socially.

Employment outlook India is fostering a digitally skilled, inclusive, and sustainable workforce through public-private partnerships, digital literacy, and environmental awareness. The GCCs are driving technology adoption in AI, data analytics, RPA, cybersecurity, and more, positioning India as a global hub.

India’s consistent job creation across sectors reinforces its status as one of the world’s fastest-growing economies. Labour reforms, workforce alignment with industry needs, and inclusive policies are key pillars driving sustainable growth, ensuring India continues its trajectory toward becoming a global powerhouse.