India Sees Positive Job Growth, But Challenges Persist: World Bank Report

New Delhi: India’s job market is showing a positive trajectory, according to the latest World Bank report, with employment growth outpacing the working-age population since the 2021-22 fiscal year. One of the key highlights of the report is the increasing participation of women in the workforce.

The World Bank’s findings reveal that employment growth has been accelerating, especially among women, and urban unemployment has fallen to its lowest level since 2017-18. In Q1 FY24/25, urban unemployment dropped to just 6.6%, indicating a significant improvement in the job market.

The report also noted a shift in employment patterns, with more men migrating from rural areas to urban centers in search of jobs. At the same time, rural women are taking up jobs in agriculture, reflecting changing employment trends across the country.

Despite these positive trends, the report points out some challenges. Youth unemployment stands at 13.3%, with even higher rates among those who have completed higher education, where 29% of graduates remain jobless. Moreover, the formal job market remains limited, with only 23% of non-farm paid jobs being formal, and agricultural employment remains largely informal.

Self-employment is rising, particularly among rural workers and women, as more individuals choose to work for themselves rather than take on regular jobs. However, despite the rise in female employment, gender disparities persist. Women account for 31% of the employed population, but there are still 234 million more men in paid work.

The World Bank also addressed poverty, noting that five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—continue to house a significant portion of India’s extremely poor population. While poverty has reduced in these states, they still account for 54% of India’s extreme poor and 51% of the multidimensional poor as of 2022-23.