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.

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

• 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.