Self-Employment Fuels India's Job Market Growth Over Six Years, Says HSBC Report

A new HSBC report highlights the rise of self-employment in India, now the fastest-growing employment sector, with figures jumping from 239 million in FY18 to 358 million in FY24. The increase in female employment and the decline in traditional salaried roles underscore significant labour market shifts.

In a transformative trend for India's labour market, self-employment has surged significantly over the past six years, as per HSBC Bank's recent Employment Trends in India report. The study documents this sector's growth from 239 million in fiscal year 2018 to 358 million in FY24, marking a robust compound annual growth rate (CAGR) of 7.0 per cent.

Notably, self-employment has now eclipsed traditional salaried work and casual labour as the fastest-growing employment category. While salaried positions saw a modest rise from 105 million to 119 million over the same period, marking a CAGR of just 4.1 per cent, casual labour incrementally increased from 114 million to 122 million at a sluggish CAGR of 1.1 per cent.

The report also shines a light on a broader rise in labour market participation, particularly among women. The Labour Force Participation Rate (LFPR) for those aged 15 to 59 increased from 53 per cent in FY18 to 64.3 per cent in FY24, with women's participation climbing to 31.7 per cent, compared to men's 58.2 per cent. The overall employment increase of 155 million, predominantly due to female workers, underscores this shift.

(With inputs from agencies.)