India struggles to create quality jobs as 43% of workers remain in agriculture
Updated
Updated · Business Today · May 9
India struggles to create quality jobs as 43% of workers remain in agriculture
9 articles · Updated · Business Today · May 9
A 2025 SBI Research analysis put labour force participation at 59.3%, with men at 79.1% and women at 40%, underscoring a wide gender gap.
More than 42% of jobs are in non-agricultural firms with fewer than 19 workers, while only 13.7% are in enterprises with over 20 workers despite recent improvement.
Punjab had the highest informal employment share at 82%, ahead of Uttar Pradesh and Bihar at 81%; the report said training and manufacturing growth are vital to formalise work.
Why are more Indian women starting businesses, yet remain trapped in the most precarious informal jobs?
With new labor codes now in effect, why do 80% of Indian workers still lack formal job security?
As 40% of its young graduates stay jobless, is India's demographic dividend becoming a demographic burden?
Formalizing 64 Crore Jobs: India’s Struggle and Strategy for Inclusive Growth (2026)
Overview
India has made notable progress in formalizing its workforce and expanding social protection, as shown by strong employment growth and the implementation of major welfare schemes. Between 2017–18 and 2023–24, the country added about 16.83 crore new jobs, with total employment rising from 47.5 crore to 64.33 crore. This period also saw the unemployment rate drop from 6.0% to 3.2%, while both the Labour Force Participation Rate and Worker Population Ratio increased significantly. These improvements highlight India's commitment to building a more inclusive and secure labor market for its vast population.