- Self-employment rose to 58.4% in 2023-24, reflecting a shift toward entrepreneurial and independent work.
- Women increasingly moved from salaried roles to self-employment, especially in rural areas.
- India’s unemployment rate dropped to 3.2%, showcasing a strong post-pandemic recovery.
India is witnessing a significant shift in employment trends, with self-employment becoming an increasingly preferred option. According to the Economic Survey, the proportion of self-employed workers rose from 52.2 percent in 2017-18 to 58.4 percent in 2023-24, highlighting the growing appeal of entrepreneurial ventures and flexible work arrangements. This trend reflects a post-pandemic recovery in employment and a transition towards more independent work models.
The survey revealed that while the share of regular or salaried jobs declined from 22.8 percent to 21.7 percent during the same period, there was a steady rise in individuals opting for self-employment. The share of casual workers also declined, from 24.9 percent in 2017-18 to 19.8 percent in 2023-24, indicating a shift towards more structured and stable forms of self-employment. The growing number of “own account workers” or independent workers surged from 19 percent to 31.2 percent during the same timeframe, showcasing a shift toward independent economic activities.
This transformation has been particularly impactful for women, as noted in the Periodic Labour Force Survey (PLFS). In rural areas, the proportion of women in regular wage jobs declined from 10.5 percent in 2017-18 to 7.8 percent in 2023-24. However, many women have moved toward self-employment, contributing to household enterprises or working independently. In urban areas, women’s participation in salaried jobs also declined from 52.1 percent to 49.4 percent, with a noticeable drop during the 2020-21 period.
Male workers in urban areas were found to be primarily engaged in manufacturing, construction, and trade-related sectors. Meanwhile, the share of unpaid family labor, or “helpers in household enterprises,” increased from 38.7 percent to 42.3 percent, reflecting a rise in family-oriented economic activities.
The PLFS report highlighted the broader economic recovery in India, with the unemployment rate for individuals aged 15 and above steadily decreasing from 6 percent in 2017-18 to 3.2 percent in 2023-24. This improvement coincided with an increase in the labor force participation rate (LFPR) and the worker-to-population ratio (WPR).
Among the states and union territories, 12 recorded a worker-to-population ratio below the national average of 43.7 percent, while 15 exceeded the national LFPR average of 45.1 percent. Notably, states like Arunachal Pradesh, Nagaland, Tripura, Jharkhand, Assam, Odisha, Uttarakhand, Sikkim, Gujarat, Himachal Pradesh, Madhya Pradesh, and Uttar Pradesh showed significant increases in employment metrics.