India’s unemployment drops to 3.2% in 2023-24, marking major improvement, ETCFO

India’s unemployment drops to 3.2% in 2023-24, marking major improvement, ETCFO

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The Economic Survey 2024-25 revealed substantial progress in India’s labour market, with a notable reduction in unemployment and a significant rise in female workforce participation. The survey, presented by Finance Minister Nirmala Sitharaman, highlights key indicators that demonstrate India’s improving employment landscape.

Unemployment Rate at Historic Low

India’s unemployment rate has dropped to 3.2% in 2023-24, down from 6% in 2017-18, marking a sharp improvement in job creation. The Periodic Labour Force Survey (PLFS) data, cited in the Economic Survey, shows that the country is on a strong path to reducing joblessness.

“The consistent decline in unemployment rate reflects India’s ongoing recovery and job creation in the formal sector,” Finance Minister Nirmala Sitharaman stated during the presentation.

Female Labour Force Participation Hits 41.7%

The female labour force participation rate (FLFPR) has surged from 23.3% in 2017-18 to 41.7% in 2023-24, showing a significant increase in women joining the workforce across rural and urban areas. This improvement is seen as a step towards achieving more inclusive economic growth.

“Women’s increased participation in the workforce is a testament to the government’s initiatives aimed at empowerment and economic equality,” Sitharaman added.

Youth Employment Surge and Formal Sector Growth

Net additions to the Employees’ Provident Fund Organisation (EPFO) have more than doubled, with 131 lakh new registrations in FY24 compared to 61 lakh in FY19. Nearly 61% of these additions were under 29 years old, indicating a growing number of young workers entering the organised sector.

“The organised sector is increasingly offering more opportunities for the youth, reflecting the success of formalisation efforts,” the survey noted.

eShram Portal Registers 30.51 Crore Workers

The government’s eShram portal, aimed at supporting unorganised workers, has registered over 30.51 crore individuals as of December 2024. The portal now integrates 12 welfare schemes from various ministries, providing unorganised workers with greater access to social security benefits.

“The eShram portal is a crucial step in supporting the unorganised workforce, helping them access essential social security schemes,” the Finance Minister explained.

Growth in Women Entrepreneurs

The Economic Survey also highlighted the rise of women entrepreneurs, with government schemes like PM Employment Guarantee and Mudra Yojana offering financial support and mentorship. These initiatives are helping women start and scale their businesses, further contributing to economic growth.

Key Sectors for Job Creation: Digital and Renewable Energy

The survey identifies the digital economy and renewable energy sectors as major job creation areas. Both sectors are expected to generate high-quality employment, particularly for women, boosting financial independence and economic empowerment.

Focus on Skill Development

The government’s push for skill development through initiatives like PMKVY and Craftsmen Training has led to a marked increase in skilled workers. Over 1.57 crore people have been trained under PMKVY, with more than 1.21 crore certified, addressing the need for a globally competitive workforce.

The Economic Survey emphasizes that skill development aligned with emerging trends such as AI and automation will be crucial for sustaining India’s growth trajectory.

  • Published On Jan 31, 2025 at 04:38 PM IST

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