Report on India’s Employment Growth and Alignment with Sustainable Development Goals

Executive Summary

This report analyses recent data from India’s Ministry of Labour & Employment, highlighting significant progress in employment generation, workforce participation, and formalisation between 2017-18 and 2023-24. The findings indicate substantial advancements towards achieving key Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 5 (Gender Equality). The analysis covers macroeconomic trends, the remarkable increase in female labour force participation, structural shifts in employment, and the impact of government policy interventions.

Advancements in Decent Work and Economic Growth (SDG 8)

Key Labour Market Indicators

India’s labour market has demonstrated robust growth, directly contributing to the targets of SDG 8. Key indicators from 2017-18 to 2023-24 reflect a positive trajectory:

• Total Employment Growth: An increase from 47.5 crore to 64.33 crore, representing a net addition of 16.83 crore jobs.
• Unemployment Rate Reduction: A significant decline from 6.0% to 3.2%, outperforming the global youth unemployment average.
• Labour Force Participation Rate (LFPR): An increase from 49.8% to 60.1% for individuals aged 15 and above.
• Worker Population Ratio (WPR): A rise from 46.8% to 58.2%, indicating greater absorption of the labour force into productive employment.

Formalisation of the Workforce and Wage Growth

Progress towards the formalisation of employment, a core component of decent work under SDG 8, is evident from payroll data. This shift is complemented by rising wages, contributing to SDG 1 (No Poverty).

• Formal Employment: Over 7.73 crore net subscribers have joined the Employees’ Provident Fund Organisation (EPFO) since September 2017, with 1.29 crore added in 2024–25 alone.
• Youth Employment: In July 2025, 60% of new EPFO subscribers were in the 18–25 age group, indicating successful integration of youth into the formal economy.
• Wage Increases: The average daily wage for casual labourers rose from Rs 294 in 2017 to Rs 433 in 2024. The average monthly salary for regular workers increased from Rs 16,538 to Rs 21,103 in the same period.

Promoting Gender Equality and Women’s Economic Empowerment (SDG 5)

Record Growth in Female Workforce Participation

A defining feature of India’s recent labour market evolution is the unprecedented growth in female participation, a critical driver for achieving SDG 5.

• Female LFPR: Increased dramatically from 23.3% in 2017–18 to 41.7% in 2023–24.
• Female WPR: Rose from 22.0% to 40.3% over the same period.
• Formal Sector Integration: 26.9 lakh net female subscribers were added to the EPFO during 2024–25, formalising their employment and providing social security.

Targeted Government Interventions for Women

Government schemes have been instrumental in fostering an enabling environment for women’s economic empowerment, aligning with SDG 5 and SDG 10 (Reduced Inequalities).

1. Lakhpati Didi: Aims to create 3 crore Self-Help Group (SHG) members with sustainable annual incomes of over Rs 1 lakh.
2. Namo Drone Didi: Empowers SHGs with technology by providing 15,000 drones for agricultural services, creating new livelihood opportunities.
3. Mission Shakti: Focuses on women’s safety, skill development, and support systems like childcare facilities.
4. Community-Based Roles: Schemes like Bank Sakhi, Krishi Sakhi, and Pashu Sakhi have created sustainable employment for women in rural financial, agricultural, and livestock services.
5. Entrepreneurship Support: Initiatives such as the PM Employment Guarantee Programme and DAY-NRLM provide financial aid and mentorship to women-led enterprises.

Structural Shifts and Policy Framework for Inclusive Growth

Evolving Employment Patterns and Sectoral Dynamics

The structure of India’s workforce is shifting, reflecting broader economic transformations.

• Rise in Self-Employment: The proportion of self-employed individuals increased from 52.2% in 2017–18 to 58.4% in 2023–24, indicating a trend towards entrepreneurship.
• Decline in Casual Labour: The share of casual labourers decreased from 24.9% to 19.8%, suggesting a move towards more stable forms of employment.
• Sectoral Distribution: In April–June 2025, agriculture remained the primary employer in rural areas (70.9% of women), while the tertiary sector dominated urban employment (64.9% of women).

National Schemes for Skill Development and Job Creation (SDG 4 & SDG 8)

Government initiatives are focused on building a skilled workforce and creating sustainable employment opportunities, aligning with SDG 4 (Quality Education) and SDG 8.

• Skill India Mission: Provides nationwide training to skill, re-skill, and up-skill the workforce.
• MGNREGA: Guarantees rural employment, acting as a social safety net and contributing to SDG 1.
• PM Vishwakarma: Supports artisans and craftspeople, preserving traditional skills while promoting economic self-sufficiency.

The Role of Innovation and the Digital Economy (SDG 9)

The growth of new-age sectors is reshaping the employment landscape, fostering innovation in line with SDG 9 (Industry, Innovation, and Infrastructure).

• Startup Ecosystem: As the world’s third-largest ecosystem, India’s 1.9 lakh recognised startups have created over 17 lakh jobs.
• Gig Economy: The gig workforce is projected to grow to 2.35 crore by 2029–30. The e-Shram portal and the Code on Social Security (2020) aim to extend social protections to these workers.
• Global Capability Centres (GCCs): Employing over 2 million people, India’s 1,700 GCCs are integrating the domestic workforce into global value chains through high-skilled jobs in technology and innovation.

Conclusion: An Outlook Towards Sustainable and Inclusive Employment

India’s employment trajectory shows significant progress aligned with the Sustainable Development Goals. The substantial increase in overall employment, coupled with a sharp decline in unemployment and a historic rise in female workforce participation, underscores effective policymaking. The focus on formalisation, skill development, and support for new economic sectors like startups and GCCs positions the nation for continued inclusive and sustainable growth. Future efforts must continue to build on these gains, ensuring that economic development translates into decent work and shared prosperity for all segments of the population.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article’s primary focus is on the significant expansion of employment in India, the decline in the unemployment rate, the formalization of the economy, and rising wages. These themes directly align with the goal of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. SDG 5: Gender Equality
   • A major section of the article is dedicated to the “record growth” in women’s participation in the workforce. It provides specific data on the rising female Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) and lists numerous government schemes aimed at empowering women economically. This directly addresses the goal of achieving gender equality and empowering all women and girls.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Targets under SDG 8: Decent Work and Economic Growth
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
     • The article supports this target by detailing the creation of 16.83 crore net new jobs, the drop in the unemployment rate from 6.0% to 3.2%, and the increase in the Worker Population Ratio. It also highlights the rise in average daily wages for casual labourers and monthly salaries for regular workers, indicating progress towards “decent work.”
   • Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training.
     • The article directly addresses this by stating that “Youth unemployment also dropped from 17.8% to 10.2%” between 2017-18 and 2023-24. It also notes that a significant portion (60%) of new EPFO subscribers were in the 18–25 age group.
2. Targets under SDG 5: Gender Equality
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
     • The article provides extensive evidence of increased female participation in economic life. The data showing the female LFPR increasing from 23.3% to 41.7% and female WPR rising from 22% to 40.3% are direct measures of progress towards this target.
   • Target 5.c: Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.
     • The article explicitly lists several government policies and schemes aimed at empowering women, such as “Namo Drone Didi,” “Mission Shakti,” “Lakhpati Didi,” and various initiatives to support women entrepreneurs. These policies are concrete actions that align with this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 8 (Decent Work and Economic Growth)
   • Unemployment Rate: The article explicitly uses this indicator, reporting a decline from 6.0% in 2017–18 to 3.2% in 2023–24.
   • Youth Unemployment Rate: This is a specific indicator mentioned, showing a drop from 17.8% to 10.2% in the same period.
   • Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR): The article provides precise figures for the increase in both LFPR (49.8% to 60.1%) and WPR (46.8% to 58.2%), which measure workforce engagement and absorption.
   • Growth in Average Earnings: The article provides data on the increase in average daily wages for casual labourers (from Rs 294 to Rs 433) and average monthly earnings for regular workers (from Rs 16,538 to Rs 21,103), serving as indicators for decent work.
   • Proportion of Formal Employment: The growth in net subscribers to the Employees’ Provident Fund Organisation (EPFO), from 61.12 lakh in 2018-19 to over 1.29 crore in 2024-25, is a clear indicator of the formalization of the economy.
2. Indicators for SDG 5 (Gender Equality)
   • Female Labour Force Participation Rate (Female LFPR): This is a key indicator used in the article to demonstrate progress, showing a rise from 23.3% to 41.7%.
   • Female Worker Population Ratio (Female WPR): The article provides data for this indicator, which increased from 22% to 40.3%.
   • Proportion of Women in Formal Employment: The addition of 26.9 lakh net female subscribers to the EPFO in 2024–25 is a specific indicator of women’s integration into the formal workforce.

4. Table of SDGs, Targets, and Indicators

Source: timesofindia.indiatimes.com