Economic Survey 2025: Self-employment, entrepreneurship lead India's employment surge

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2024-25 in Lok Sabha on Friday, the first day of the Budget Session. Despite the odds, India’s employment has shown good resilience driven by a surge in self-employment and entrepreneurial ventures even though it was hit hard in the wake of the Covid-19 pandemic a few years back. The 2023-24 Periodic Labour Force Survey (PLFS) by the National Statistical Organisation (NSO) reveals an encouraging recovery in employment trends across the country marking a significant rebound in both urban and rural areas.

With a sharp decline in the unemployment rate and an increase in labour force participation, India’s workforce is undergoing a transformation—one that emphasises flexibility, independence and self-reliance. As government initiatives continue to empower individuals and support sustainable livelihoods, India’s employment scenario is evolving into one that embraces change and fosters entrepreneurial spirit.

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Here are 10 key trends and insights from the 2023-24 PLFS report that tells the story of India’s employment recovery:

1. Sharp decline in unemployment rates

• India’s all-India annual unemployment rate (UR) has steadily dropped from 6 per cent in 2017-18 to 3.2 per cent in 2023-24 showcasing a robust post-pandemic recovery.

2. Improved labour force participation

• The Labour Force Participation Rate (LFPR) has increased, highlighting greater involvement in the workforce across both urban and rural areas.

3. Worker-to-Population Ratio rising

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• The Worker-to-Population Ratio (WPR) has surged, particularly in 14 states that have seen over a 10-percentage point increase, reflecting growing employment opportunities.

4. Urban unemployment trend: Gradual improvement

• In urban areas, the unemployment rate dropped slightly from 6.6 per cent in Q2 FY 24 to 6.4% in Q2 FY 25, marking a steady recovery.

5. Surge in self-employment

• The proportion of self-employed workers rose from 52.2 per cent in 2017-18 to 58.4 per cent in 2023-24, reflecting a shift toward entrepreneurship and flexible work arrangements.

6. Decrease in casual employment

• The share of casual workers decreased from 24.9 per cent to 19.8 per cent, indicating a shift toward more stable, structured forms of employment.

7. Impact on women’s employment: Shift toward entrepreneurship

• Women’s participation in regular wage/salaried jobs fell, but their involvement in self-employment or household enterprises increased, particularly in rural areas. In rural India, women’s share of “own account workers/employers” rose from 19 per cent to 31.2 per cent.

8. Rise in Family-Oriented Economic Activities

• The proportion of women working as “helpers in household enterprises” grew from 38.7 per cent to 42.3 per cent reflecting a rise in unpaid family labour.

9. Post-pandemic shifts in employment patterns

• The pandemic induced a shift towards more flexible work options, especially for women who had to balance work with caregiving roles due to school closures and elder care needs.

10. Government initiatives fuelling entrepreneurship

• Programmes like Mudra Yojana, Skill India and Start-Up India have empowered individuals to pursue self-reliance and entrepreneurship fostering a sustainable workforce ecosystem

These key trends in employment recovery indicate a shift in India’s workforce with a stronger emphasis on entrepreneurship, self-reliance and flexible employment, particularly among women.