India is witnessing a positive shift in employment trends, with job growth surpassing the rise in the working-age population since the 2021-22 fiscal year, the World Bank has noted in its latest report.
The report highlights that employment rates, particularly among women, are climbing steadily. Urban unemployment fell to 6.6% in the first quarter of FY24-25—the lowest level recorded since 2017-18.
Another significant trend observed is an increase in rural-to-urban migration among men seeking work, while more rural women are taking up agricultural jobs, reflecting changing employment dynamics across the country.
However, the World Bank also flagged persistent challenges. Youth unemployment remains high at 13.3%, with 29% of higher-educated individuals still looking for jobs. The report also pointed out that only 23% of non-farm paid jobs are formal, and most agricultural employment remains informal.
Self-employment is on the rise, particularly among rural workers and women, indicating a shift away from traditional employment.
Despite improvements, gender disparities in employment remain stark. While the female employment rate has reached 31%, there are still 234 million more men than women in paid jobs.
On poverty, the report said that five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for 65% of India’s extreme poor in 2011-12. Although poverty has declined, these states still house 54% of India’s extremely poor and 51% of the multidimensional poor as of 2022-23.