The Indian economy added an impressive 4.67 crore jobs in the financial year ending March 2024, and the pace of job creation has continued into 2024-25, with growth observed in both formal and informal sectors, according to official data.
The total estimated employment in India’s Unincorporated Sector recorded a robust growth of 10.01% during the period from October 2023 to September 2024, compared to the previous year, as revealed by the Annual Survey of the Ministry of Statistics, released on Thursday.
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) indicates that the “Other Services” sector alone employed more than 12 crore additional workers between October 2023 and September 2024. This marks an increase of over one crore workers from the previous year, highlighting significant labour market growth.
Among the various sectors, the “Other Services” sector showed the highest annual growth at 17.86%, followed by the manufacturing sector at 10.03%.
The unincorporated non-agricultural sector plays a pivotal role in India’s economy, contributing significantly to employment, GDP, and the broader socio-economic framework. This sector sustains the livelihoods of millions and acts as a backbone for the incorporated sector by supplying goods and services, further strengthening its position in the domestic value chain.
In parallel, India’s formal sector, which offers higher-quality jobs, has also sustained its growth momentum during the first half of the current financial year. New enrollments across the three major social security schemes have seen an increase compared to the same period last year, according to figures released in November.
New enrollments in the Employees’ Provident Fund (EPF) scheme, which is applicable to larger organizations and better-paid employees, rose by 2.3%, reaching 6.1 million in the first half of 2024-25 (April-September), compared to the previous year.
Subscriptions to the Employees’ State Insurance Corporation (ESIC), which covers smaller organizations, saw a faster increase of 5.2%, with 9.3 million new enrollments during the first half of the current financial year. Similarly, enrollments in the National Pension System (NPS) grew by 6.8%, reflecting the growing number of employees joining better job streams.
This overall improvement in job quality has also been noted in the latest monthly economic review by the Finance Ministry.
