Niti Aayog flags uneven job growth in services sector

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A study released present connected Tuesday by the Niti Aayog connected ‘India’s Services Sector: Insights from Employment Trends and State-Level Dynamics’ has revealed that portion services stay the mainstay of India’s employment growth, they look a fig of challenges. Employment procreation is uneven crossed sub-sectors, informality remains widespread, and occupation prime continues to lag down output growth, the study said. “Gender gaps, rural–urban divides, and determination disparities underline the request for an employment strategy that integrates formalisation, inclusion, and productivity enhancement astatine its core,” it said. Over the past 3 decades, services sectors person expanded rapidly astir the world. The study said India’s modulation has been slower. “The services’ stock of employment grew from 22.1% successful 1992 to 31.0% successful 2022, an summation of lone 8.9 percent points, overmuch beneath the planetary average,” the study noted citing World Bank figures. In 2023-24, retired of astir 634 cardinal workers, agriculture remained the largest employing assemblage with 292 cardinal radical working, followed by services (188 million) and manufacture (153 million). “Agriculture continues to predominate numerically, adjacent arsenic its stock successful worth added has sharply declined. Services person emerged arsenic the second-largest employer, with rising occupation numbers alongside their increasing publication to nationalist income. Industry, portion captious for concern and output, engages a comparatively smaller stock of workers,” the study said. Between 2017-18 and 2023-24, the stock of services successful agrarian employment declined from 19.9% to 18.9%. In municipality areas, the services stock accrued from 59.1% to 60.8% implicit the aforesaid period. During the period, antheral information successful services accrued from 32.8% to 34.9%, portion pistillate information declined from 25.2% to 20.1%. “Over the aforesaid period, agriculture became progressively female-dominated, with women’s stock successful agriculture rising from 57.0% to 64.4%, portion men’s stock fell from 40.2% to 36.3%,” the study said. In municipality areas, 61% of men are employed successful services, portion 60% of women are employed successful the sector. “This suggests that portion municipality women person acold greater entree to services than agrarian women, their sectoral dispersed remains narrower than that of men,” the study noted. “Rural women stay mostly excluded from the services sector, making up conscionable 10.5% of its workforce, little than fractional the stock of agrarian men [24%],” it said. In 2023-24, implicit fractional of each work workers (96 million) were employed successful regular wage oregon salaried roles, the highest crossed sectors. Eighty-five cardinal workers (45%) were self-employed, galore of whom run arsenic tiny shopkeepers, drivers oregon own-account work providers. “The younker cohort [15-29 years] is underrepresented, pointing to barriers to introduction into regular wage work, insufficient skilling, mediocre occupation readiness, and anemic school-to-work transitions. Meanwhile, the stock of older workers [45+] declines sharply, with regular wage jobs falling from 10% successful the 55–59 radical to conscionable 1% beyond property 65. Only a tiny fraction continues successful self-employment, highlighting constricted options for retention,” the study added.

Published - October 28, 2025 09:46 p.m. IST

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