Self-Employment Emerges As Strongest Driver Of India’s Job Growth

India’s labor market is undergoing a significant transformation, with self-employment emerging as the most powerful driver of job growth. According to HSBC Bank’s Employment Trends in India report, self-employment has surged from 239 million in FY18 to 358 million in FY24, recording a healthy compound annual growth rate of 7 percent. This expansion has outpaced the growth of salaried jobs and casual labor, underscoring the increasing role of entrepreneurship and independent work in the country’s employment landscape.  

The report notes that while salaried jobs grew modestly from 105 million to 119 million at a CAGR of 4.1 percent, casual labor stagnated, inching up from 114 million to 122 million at a CAGR of just 1.1 percent. In contrast, self-employment has flourished, driven by both farm and non-farm activities, reflecting resilience and adaptability among India’s workforce.  

Key highlights from the report include:  

• Self-employment rose sharply to 358 million in FY24, making it the fastest-growing employment category  
• Labour Force Participation Rate (LFPR) for the working-age population increased from 53 percent in FY18 to 64.3 percent in FY24  
• Women’s participation has improved significantly, reaching 31.7 percent in FY24, while male LFPR stands at 58.2 percent  
• Services, construction, and manufacturing sectors have played a pivotal role in non-farm job creation  
• The report emphasizes that self-employment is reshaping India’s labor market, offering flexibility and opportunities for income generation  

This trend highlights a structural shift in India’s employment ecosystem, where self-driven work is increasingly becoming the backbone of job creation. With rising participation and sectoral diversification, self-employment is expected to remain a critical pillar of India’s growth story in the coming years.  

Sources: WebIndia123, ET BFSI, The Tribune India, Devdiscourse