New Delhi [India]: India is experiencing a notable uptrend in employment, with job creation outpacing population growth since the 2021-22 fiscal year, according to the latest World Bank report. A key highlight of the report is the growing participation of women in the workforce and a drop in urban unemployment.
“Employment growth has outpaced the working-age population since 2021-22,” the report stated, noting that urban unemployment fell to 6.6 per cent in Q1 of FY24/25, the lowest level since 2017-18.
Key Findings from the Report:
- Employment rates are rising, especially among women.
- Urban unemployment stands at 6.6%—a seven-year low.
- Male migration from rural to urban areas has increased for the first time since 2018-19.
- Rural women are increasingly participating in agriculture-based work.
- A growing shift towards self-employment, particularly among women and rural workers.
- Despite improvements, youth unemployment remains high at 13.3%.
- Among graduates, unemployment is significantly higher—29% are still job hunting.
- Only 23% of non-farm paid jobs are formal, while most agricultural work remains informal.
Gender Gap Persists Despite Progress
While female workforce participation has increased to 31%, the gender gap in employment remains stark. The report highlighted that 234 million more men than women are currently in paid jobs.
“Despite progress, gender disparities remain,” the report emphasized.
Poverty Concentrated in Key States
The World Bank also shed light on persistent poverty in India’s five most populous states:
- Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh accounted for:
- 65% of India’s extreme poor in 2011-12
- 54% of the extreme poor and 51% of the multidimensionally poor in 2022-23
While progress has been made, these states still face significant challenges in poverty alleviation.
Conclusion:
India’s job market is showing positive momentum, with encouraging signs in female workforce inclusion, urban employment, and self-employment trends. However, challenges such as youth unemployment, informality, and regional poverty disparities remain pressing concerns.