India's Employment Boom: The Rise of Self-Employment as the Driving Force

HDFC Bank's report reveals self-employment has led India's job growth, surging from 239 million in FY18 to 358 million in FY24. Women's participation significantly increased, with self-employment reshaping India's labor market. Notably, services, construction, and manufacturing sectors have been pivotal in non-farm job creation.

According to a recent HDFC Bank report, self-employment has significantly fueled job growth in India over the past six years. The 'Employment Trends in India' report highlights a surge in self-employment figures from 239 million in fiscal year 2018 to 358 million in fiscal year 2024, marking a robust compound annual growth rate of 7.0%.

The growth in self-employment has outpaced that of salaried or wage-based positions, which grew marginally from 105 million to 119 million between FY18 and FY24, reflecting a CAGR of 4.1%. Casual labor witnessed only a slight increase, rising from 114 million to 122 million, with a modest CAGR of 1.1% during the same timeframe.

The report also notes an increase in the labor force participation rate, with participation among the working-age population rising from 53% to 64.3%. Women's participation saw a notable increase, standing at 31.7% as of FY24, a significant driver of the employment growth, with female employment increasing by 103 million compared to 52 million in male employment during this period.

(With inputs from agencies.)