The India Employment Report

The India Employment Report
April 2017
Prepared by IMA India
Disclaimer
The India Employment Report contains IMA India’s analysis of data generated by several rounds of employment and
unemployment surveys conducted by the National Sample Survey Organisation (NSSO) in from 1999-00 to 2011-12, and
also includes analysis of relevant data from the Census of India, surveys conducted by the Labour Ministry and the Ministry
of Human Resource Development. The report is intended for solely for the internal use of subscribing companies including their
group and subsidiary companies.
The contents of this report are the intellectual property of IMA India. They are copyright protected and legally privileged.
Unauthorised copying, reproduction or distribution of the information contained in these slides would amount to an
infringement of law and would invite applicable penalties.
The contents of this document are accurate to the best of our knowledge and belief. However the presentation is intended only
to provide an overview of employment patterns and cannot become the only basis of determining strategy. IMA India cannot
assume responsibility for the outcome of decisions made on the research provided here. This is liable to change based on
developments in the political or economic environment within the Republic of India, or elsewhere.
© IMA India, 2017 www.ima-india.com 2

Executive Summary

Executive Summary: The world’s largest workforce, but under
stress
• 462.5 million (mn) Indians form India’s workforce
• An equally large number – 445.6 million are either studying, or are ‘out of the labour force’ i.e. not
seeking employment
• In comparison, India’s unemployed are a tiny 18 million, but that number has gone up by 76% in the four
years between 2011-12 and 2015-16
• Concealed unemployment is, however, the greater concern:
• 63 mn Indians considered employed do not regularly get paid in cash or kind (eg helpers in
household enterprises). Put together with 18 mn, that places unemployment (or unproductive
employment and unemployment) at 18% of the current employed workforce.
• Another 110 mn (split almost evenly by gender) are, at the time of this study’s base surveys,
employed for short periods (under 6 months) and 26 mn are in part-time/secondary jobs.
• Employment itself has stagnated in the 2010 decade, moving from 467 million in 2011-12 to 462.5 mn in
2015-16.
• The pre-dominance of the informal sector as employer – 180 mn versus just 30 mn in government
jobs and an even smaller 19 mn employed by the private sector - is a key reason for job distress and lack
of security nets. 72% workers in the informal sector are employed in enterprises that employ less than 6
people.
Executive Summary: The challenge of informality
• The informal sector had accelerated its job creation - 25.7 mn added between 04-05 and 11-12; three
times the 9.2 mn added by the private sector.
• Over 90% of formal private sector employment, however, was added in seven years alone,
between 2004-05 and 2012, indicating a fast acceleration, albeit from a low base.
• Only 45% of all establishments (70 mn) have a fixed structure, lending itself further to the informality of
employment in India.
• The informal sector is characterised by lower levels of education than the formal – about 90% are
educated up to primary or higher secondary levels, with only a 10th graduates or post graduates.
• The reality of a huge segment of workers, who are ‘self employed’ – whilst down by 41 mn in the last 11
years, is still a huge 214.4 mn of the total. The bulk of these are ‘own account’ workers (i.e. work for
themselves without any labour). Nearly 72% of the total establishments (~42 mn), are own-account -
accounting for 44% of employment.
• Regular salaried employees in India stand a whisker short of 100 mn at 98.9 mn, up over 30% since
2004-05 (led by the private sector), but still a small component. Maharashtra, Gujarat and the three
southern states of Tamil Nadu, Andhra (and Telengana) and Karnataka registered the highest increases.
By contrast, UP and West Bengal saw rises in casual labour.
• By state, private sector share of employment, however, remains in the 12-15% range even at the
highest levels with states like Maharashtra, Haryana, Karnataka, Gujarat and Delhi leading the pack.
Goa, at 34% is an outlier
Executive Summary: Urban India – Rising criticality
• Urban India is a fulcrum of job creation.
• Whilst 59% of all establishments (70 mn, not including farming, defence and public administration) are
still in rural India, the growth in the number of urban establishments, at 47% over 38% between 2005
and 2013 signals the increasing importance of urban areas as centres of job growth.
• Of these urban centres, large cities (47 that are million plus in population) account for 35% of total
urban employment. Whilst the Mn+ cities that emerged in the 2000 decade are key, so are others that
have emerged since 2011. 6 of these 9 cities are in and around the Delhi and Mumbai corridors. Rising
urban to urban migration is a signal of this trend.
• 10 states in India account for 75% of all employment, led by UP with 63.5 mn and including Maharashtra
(45.8 mn), West Bengal (36.6 mn), Bihar (33.4 mn), Tamil Nadu (33.1 mn), Karnataka (27.3 mn), Rajasthan
(26.5 mn), MP (24 mn), Andhra Pradesh (23.8 mn) and Gujarat (22.6 mn). Haryana (8.9 mn) and Delhi (5.6
mn) offer small employment numbers in comparison.
• Viewed as a percentage of total workforces in these states, Mizoram (0.8 mn, but 66% of the state’s
population), Chhattisgarh (12.9 mn, 66%), Jharkhand (15 mn, 64%), Meghalaya (1.3 mn, 62%) and Nagaland
(0.8 mn, 62%) emerge as the leaders in employment generation.
• 10 states in India, however, account for 81% of private sector employment
• Employment is not keeping pace with the number of people being added to working age population. The
ratio of increase in employment to the increase in working age (above 14 years) population in states like UP,
Gujarat, MP & J&K is negative, and states like Maharashtra and Haryana barely keep pace at 3% and 1%.
Smaller states including the seven sisters in the North East do much better, but with much smaller populations.
Executive Summary: The rise of services, and the fall of
manufacturing
• Agriculture is still the main employer with 211.3 mn Indians engaged in agriculture in 2015-16, much lower
however, than the 252.7 mn registered in 2004-05.
• Services is now the second largest employer after agriculture with 151 mn Indians employed in services
(led by retail and wholesale trade), followed by construction at 52 mn
• The manufacturing sector, however, has shown a decline from 53 mn to 46 mn in the decade through
to 2015-16.
• Worryingly, only a small segment (13.88 mn) of manufacturing sector employment is in the formal,
organised sector, which too, saw 20% of factories becoming non-operational as in 2013-14. The stress on
employees of these factories would be significant.
• That said, given a secular rise in the number of workers in organised factories (from 11.79 mn in 2004-05 to
13.88 in 2014-15, the trend also points to a larger number of people employed in potentially larger
factories/set ups
• Manufacturing hubs by employment are limited to a few districts and concentrated on the Western and
South-Eastern coast as well as some in the North. The services sector hubs are more widespread, and
concentrated especially in the South and West.

Executive Summary: Women are opting out
• The greatest concern – and potential opportunity – lies in the fact of declining participation by women in
the workforce. Only 35% working age women were employed in 2015-16, compared to 61% of
working age men.
• Rural India has seen a decline both in growth and numbers – from 35% of total workforce to 29% and
from 101 mn to 95 mn. Urban India figures are a tad better – whilst participation has fallen from 22% to
18% of the total workforce, it has risen from 16 mn to 24 mn.
• The rural private sector saw declining women workforces, rising in the public sector, whilst urban India saw
the private sector double participation, but with no change in share of total workforce.
• This is despite the fact that they are better educated – the number of graduates and post graduates are
even by gender (3 mn each and 0.7 mn each respectively), and getting married later – 35% of urban
women marry after 25 years of age, and 17% of rural Indians do so. The bulk of this decline is attributed
to the fact that they are moving out of the labour force i.e. opting not to work, with most opting for
household duties. Many more are of course also studying
• In contrast almost the entire incremental male population between 2004-05 and 2011-12 across age groups
joined the workforce, excepting the age groups till 24 years, where they are opting for higher education.
• The answer is in the private sector because over half the employed women in urban areas are regular
salaried employees, a trend visible in no other segment.
Executive Summary: Better educated, but out of work
• The decade 2001-2011 added 31 mn graduates and post graduates to the potential workforce, and 110 mn
with secondary/higher secondary education (this is the fat middle comprising the bulk of India’s
workforces).
• Whilst falling year on year, there are still 447 mn illiterates in India – which, by linear projection, will fall,
but to a still high 306 mn by 2021. About 140 mn illiterates formed a third of the workforce in 2011-12.
Graduates and post-graduates, whilst they have increased by 50% (to 32 mn) and nearly doubled (to 12 mn)
respectively, in the period between 2004-05 and 2011-12, form less than a tenth of India’s workforces today.
• In the four years to 2015-16, 25 mn Indians completed their graduation and 6 mn their post
graduation.
• The most populous states have the greatest number of graduates and post-graduates. No state has more
than 8% of their workforce (Maharashtra) with this education profile. Massive UP has 5% of the total. This
study does not speak to the quality of education. Based purely on numbers, UP has almost 40 mn
graduates/post graduates (14.2 mn women), followed by Maharashtra at 34.6 mn (13.9 mn women),
• The technically skilled talent pool with formal education, either current or studying, is concentrated in
a few states – Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka, West Bengal and UP.
• Technology as well as medical graduates are concentrated in the three southern capitals, Mumbai and Delhi.
Mumbai and Delhi have the highest concentration of other education profiles.
• A quarter of the 18 mn unemployed in India are graduates or post graduates. Nearly 15 mn grads and 4 mn
post grads are also opting not to work.
Executive Summary: The premium for skills
• Specialised courses have greater demand with much fewer from courses such as engineering, technology or
medical sciences unemployed, compared to those with humanities or science degrees. Illustratively, 50% of
those with humanities qualifications were employed in 2015-16, compared to 67.7% of medical students
and 61% engineering or technology graduates.
• Humanities is nonetheless the course subscribed to by the greatest number of students, with almost 10 mn
graduates added to the talent pool in three years till 2015-16, compared to 3 mn engineering or technology
grads. Many more of the latter are completing courses, with humanities reflecting a 6% de-growth
• Vocational training is catching up, with 10-15% of working age population in each age band today
vocationally trained. 78.3 mn Indians received vocational training in 2011-12, up massively from 45.3 mn
just two years prior. On the job training is the most active source of vocational training.
• Those vocationally trained are more employable than graduates, and also more keen to work. While 59% of
graduates were employed in 2011-12 and 26% had opted not to work, the corresponding figures for those
vocationally trained were 83% and 9%, respectively.
• Certain skill development streams are seeing higher levels of unemployment (computer trade for example –
which is the most preferred field) than others, whilst others, such as those trained in textile-related work,
printing technology or personal care are opting not to work.
• The mismatch between available jobs and job-seeker skill sets and experience is the key reason for
unemployment. A mismatch in remuneration expectations – most so in rural India – is the other
Executive Summary: The future – in linearity
• By 2021, there will be another 173 Indians added to the 19+ age group, massively expanding available
workforces and by corollary, the demand for jobs
• 117 more Indians will be urban (75 mn more will be rural), further accelerating the trend, and pressure, of
job creation in India’s urban centres
• 500 mn Indians will be employed, but 470 mn will opt not to work. The demand for employment will
intensify if these numbers change. Another 400 mn will be studying, creating the next big wave of talent.
The need to create the right academic curricula in line with tomorrow’s expectations is urgent.
• 75% of all graduates and post graduates will be accounted for by ten states, led by Maharashtra, UP, Andhra
and Karnataka.
• At 57%, the ‘out of labour force’ population is predominated by those illiterate; another 17% are those who
have studied just up to the primary level. These numbers are projected to go to 49% and 18% respectively -
again a need of the hour for policy makers and those in the education sector

India: Trends in employment

The employment and talent scenario in India: 2015-16
In 2015-16, 462.5 million people above A young country: age distribution,
the age of 14 years were employed – 9 2015 (mn)*
mn more than a decade ago; and about
18 mn were searching for jobs 340 356 340 155 78
10 states that account for 73% of
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
India in 2015-16 population above 14 years also
account for 75% of employment 0-14 15-29 30-49 50-65 65+
Students & those not Uttar Pradesh India produced 6.3 mn graduates and 1.4
Employed,
seeking employment, 462.5, Maharashtra mn postgraduates in 2015. The US is expected
445.6, 48% 50% West Bengal to produce 1.9 mn graduates and 0.8 mn
Largest
Tamil Nadu employment postgraduates. Encouragingly, the share of women is
states half the total.
Bihar
Unemployed, Karnataka 3.2 Male Female
18, 2% Rajasthan
While the number of workers dipped from 466.8 mn in Andhra Pradesh
2011-12, the number of those who were either studying 3.1
(98.5 mn) or did not seek employment in 2011-12 Madhya Pradesh 0.74
Gujarat 0.67
(278.6) increased by 69 mn. The number of unemployed
too increased by about 8 mn. – a small number, but a Completed graduation Completed
postgraduation
76% increase in 4 years
Employment has stagnated over the past half decade
Trend in employment in India between 1999- The number of employed people increased by about 91 million (mn)
00 and 2015-16 (15 years & above age) between 1999-00 and 2015-16. However, both number of people
500 371.4 451.3 466.8 475.2 462.5 70% employed and their share in the total population have decreased steadily in
400
60% the last four years
50%
62.2% 54.7% 53.7%
300 60.3% 50.5% 40% Urban India added more people in the
30% The ratio of rural
200 workforce (in mn)
20% employment
100
10%
declined from 3.5
0 0%
times urban
350
1999-00 2004-05 2011-12 2013-14 2015-16 employment in 343 336 327
290
Number of employed people (mn) 2004-05 to 2.4
Employed as % of age group population (right axis)
times in 2015-16
81 100
123 139 135
Between 1999-00 and 2015-16, about 1.5 times more people were
employed in the urban areas than in rural areas. The urban workforce 1999-00 2004-05 2011-12 2013-14 2015-16
increased at a much faster 3.3% CAGR compared to 0.8% of the rural Rural Urban
workforce.
Notably, the increased rate of employment in the urban areas has been accompanied with greater number of people with higher education. For instance,
between 2001 and 2011, the urban areas produced 82 mn graduates and postgraduates, double the number in rural areas. Moreover, the pool of
graduates and postgraduates in urban areas is also double that of the pool in rural areas (184 mn and 89 mn, respectively, in 2011).
© IMA India, 2017 Source: NSSO, Labour Bureau, IMA analysis www.ima-india.com 14
Economic establishments* are growing faster in urban areas
Number of establishments
(mn, % share)
The growth in number of establishments was faster in urban areas (47.13%)
compared to rural areas (38.37%) between 2005 and 2013, indicating the
increasing importance of urban areas as centres of job growth.
Urban Rural
establishments, establishments,
23.7, 41% 34.8, 59%
Nearly 72% of these establishments (~42 mn), however, are

own-account (that is, without any hired worker), - accounting for
Types of establishments
(mn, % share) 44% of employment - which registered an increase of 56%
compared to the 15% growth in the number of establishments
Home-based,
that hired workers, since 2005.
Establishment 36.19%
with fixed
structure,
45.37% Establishment
without fixed
structure,
18.44% *These exclude crop production, plantation, public administration and defence
Source: Economic Census, IMA analysis
Large cities are driving the urban employment growth…
The share of million plus cities in total urban employment increased from 22% in 1993-94 to 35% in
2011-12, with the older megacities still accounting for the largest share of urban employment
Million plus cities’ share of urban employment (% share of urban
employment, with number of cities within brackets)
Allahabad, Amritsar, Aurangabad, Coimbatore,
Dhanbad, Ghaziabad, Howrah, Jabalpur, Jodhpur,
Mn+ cities in 2011 (new) Kota, Madurai, Navi Mumbai, Raipur, Rajkot, Ranchi,
New megacities –
Mn+ cities in 2001 (new) 6% (19) Srinagar, Vasai-Virar, Vijaywada
potential employment
Mn+ cities in 1991
3% (9)
4% (9) growth drivers in the Agra, Faridabad, Kalyan-Dombivali, Meerut, Nashik,
medium-term Patna, Pimpri-Chinchwad, Varanasi, Visakhapatnam
24% 25% 6 of the 9 mn+ cities between 2001-11 are in the Mumbai or
22%
(18) (18)
(18) Older megacities – Delhi ambit; the next mn+ are more diversified
indicating near saturation
Ahmedabad, Bangalore, Bhopal, Chennai, Delhi,
in employment
Hyderabad, Greater Mumbai, Indore, Jaipur, Kanpur,
1993-94 2004-05 2011 opportunities Kolkata, Lucknow, Ludhiana, Nagpur, Pune, Surat,
Thane, Vadodara
Note: According to 1991 Census there were 18 cities with more than a million
population. The number increased to 27 in 2001 Census and 46 in 2011 Census
(excluding urban agglomerations, which were 7 in number).
Source: Census, NSSO, IMA analysis
…emerging as employment growth hubs
Distribution of million plus cities by size of workforce and growth in employment
between 2001 and 2011
25% Growth in employment
between 2001 and 2011 Maharashtra has had the most optimal mix of both quantum of
(CAGR)
20% Hyderabad
mn-plus cities and growth in employment. Secularly, Kerala has the
Kalyan-
Pimpri-
Thane Dombivali maximum number of million plus cities (8), followed by UP (7),
Chinchwad
15% Indore Maharashtra (6), Madhya Pradesh (5) and Gujarat (4)
Nashik
Ghaziabad
10% Navi Lucknow
Bangalore
Mumbai Jaipur
Surat
5% Agra Ahmadabad
Pune
Faridabad Delhi
Kolkata Chennai
0%
Patna
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
Nagpur
Kalyan- Kanpur
-5% Vadodara Number of main workers* in each city
Dombivali Mumbai
Howrah
Ludhiana Nashik
-10%
*Main workers: persons who worked for 6 months or more during the past one year
-15%
Source: Census, NSSO, IMA analysis

Unemployment has increased, but more in rural areas, despite
employment guarantee schemes
From accounting for just over half of the unemployed in 2004-05, rural areas now account for over two-thirds the total unemployment. Rural
employment guarantee schemes do not appear to have alleviated the problem.
Trend in number of unemployed MGNREGA employment and quantum of work

people in rural and urban areas (in
80.0 74.9 12.0%
mn) 69.2 67.7
57.8 10.0%
60.0 10.2% 9.8%
5.8 9.7% 8.0%
40.0 6.0%
4.6 4.4 6.0% 4.0%
12.2 20.0
2.0%
5.8 5.8 - 0.0%
2012-13 2013-14 2014-15 2015-16
2004-05 2011-12 2015-16 Total persons worked (left axis)
Rural Urban Share of households which completed 100 days work
Not only have the number of people employed in the NREGA stagnated, but the number of households who obtained work for 100
days have been low. The numbers have risen slightly since 2014 under the new government
Source: NSSO, Labour Bureau, MGNREGA, IMA analysis
Self-employment remains the predominant form of employment…
…although the greatest growth is being registered in the regular salaried class
Trend in type of employment, 14+ years Among the three different types of workers, regular
age group (mn)
100% salaried employees registered the greatest increase in
90% number in the past decade, increasing its share in
130.2
80% 19 149.2 employment from 14% in 2004-05 to 21% in 2015-
70% 16; the share of casual labourers also registered a
60% 64.9
34 98.9 mild increase from 29% to 33% during the same
50%
period
40%
30%
20% 256.1 214.4
-41.7 * Self-employed are those who operate their own farm or non-farm
10%
enterprises or are engaged independently in a profession or trade on own-account
0%
2004-05 2015-16 or with one or a few partners. Casual wage labourers are those who are
casually engaged in others’ farm or non-farm enterprises (both household and
Self-employed Regular Salaried Casual Labourer
non- household) and, in return, received wages according to the terms of the
daily or periodic work contract
Source: NSSO, Labour Bureau, IMA analysis
Concealed unemployment is a problem of high magnitude, with
a high share of the workforce being employed for short periods
According to Census data of 2011, 40% of working women were employed for less than half a
year; the corresponding share for men was 13%
Short-term, or temporary employment is more
pronounced among women
Employment numbers shrink if those Employment by tenure 2011 Employment by tenure 2011
who did not work for most part of a (among men, in mn) (among women, in mn)
year, or those who took up temporary 9.2
46.6
employment as a secondary activity are 46.6
excluded from the overall estimates. 87.7
270.5
11.2
More than 6 months Less than 3 months More than 6 months Less than 3 months
Note: Short-term employment (employed for 6 months or less); Between 3-6 months Between 3-6 months
Source: Census 2011; 14+ years age group

A large number of people also take up employment as their
‘secondary’ activity
Concealed unemployment (in mn)
35 26
68 58
11
The number of people – either students, or
usually unemployed, or otherwise out of labour
459
465
force – employed part-time was as high as 68 mn
467
433
430
451
in 2004-05. Their number and share in the
409
383
workforce, however, have declined significantly

360
371
since then.
1999-00 2004-05 2011-12 2013-14 2015-16
All workers including part-time workers Excluding part-time workers
The decline in the number of people who take up a job as a part-time activity accompanied by an increase in the number of people
employed for most part of a year shows more people are being absorbed in the work force.
*Source: NSSO, Labour Bureau, IMA analysis; 14+ years age . Numbers do not tally with Census data due to differences in methodology and sample.
About 63 mn people, who are considered employed do not get
paid in cash or kind, with the problem more acute in rural areas
Composition of self-employed Composition of self-employed
workers in rural areas, 2015-16 (mn, workers in urban areas, 2015-16 (mn,
%) %)
Helper in Helper in
household household
enterprise, 9.9 ,
enterprise, 52.9 ,
33% 18% A third of the self-employed
in rural areas work without
Employer, any regular wages; the urban
1.2 , 2% areas in comparison show a
greater concentration of ‘own
Employer, account workers’*
1.0 , 1% Own account
Own account
worker, 44.7 ,
worker, 106.6 ,
66%
80% Source: Labour Bureau, IMA analysis
Combining the 18 mn unemployed with 63 mn employed but with no wages, unemployment stands at about 18% of
the total workforce of 462.5 mn. In addition, another 26 million work only part-time, and over 110 mn have been in
the workforce for less than six months. New additions can only explain one segment of the challenge.
* Category of self-employed workers who operate their enterprises on their own account or with one or a few partners, but without hiring any labour. Unpaid family
workers are mostly family members who are engaged in their household enterprises, working full or part-time, but without receiving any regular salary or wages
The situation, although grim, is however showing gradual
improvement from a decade ago
Composition of self-employed Composition of self-employed

workers, 2004-05 (mn, %) workers, 2015-16 (mn, %)
While both the number and share of
Helper in
Helper in helpers in household enterprises have
household
enterprise, 106.9 ,
household decreased in the past decade, so have
enterprise, 62.9 ,
42%
29%
the number and share of those who
employ workers.
The rapid increase in the number of

Employer, own account workers* imply that a
2.2 , 1% larger segment of the employed
Own account Own account
Employer, worker, 143.1 , worker, 151.3 , population are vulnerable to the
6.1 , 2% 56% 70% fluctuations in the economy
Source: Labour Bureau, IMA analysis
* Category of self-employed workers who operate their enterprises on their own account or with one or a few
partners, but without hiring any labour. Helpers in household enterprises are mostly family members who are
engaged in their household enterprises, working full or part-time, but without receiving any regular salary or wages
Self-employed workers – the largest share of workers – face the
most uncertain and difficult job environment
…as they constitute the bulk of informal sector employment…
Concentration of
self-employed
workers in the
informal sector In contrast, the predominant form
of employment in the
Government sector as well as the
private sector is regular salaried
Source: NSSO, IMA analysis

Figures for 2020-21 are projections based purely
on business as usual scenario assumptions of linear
growth
*Informal sector consists of proprietary and partnership firms
The informal sector itself is the biggest job creator, followed with
a huge lag, by the Government sector and the private sector
Informal Sector: 180.7 mn
Public Sector: 30.5 mn
Private sector: 19.1 mn

…and the majority of informal sector workers are employed in
proprietary enterprises…
The low share of

2011-12 Rural (mn, % share) 2011-12 Urban (mn, % share) Government and
Cooperative
Private Others, Private households, Others, private sector
households, 9.2 , 7% 4.4 , 4%
societies, trusts, 1.0 , 1%
2.8 , 2%
employment is the
etc., 1.2 , 1% Cooperative societies,
trusts, etc., 1.6 , 1%
main reason for
Proprietary, regular salaried
Public/Pvt Ltd Co,
5.7 , 4%
Proprietary,
94.6 , 73%
Public/Pvt Ltd Co,
77.7 , 65%
employment being the
13.5 , 11%
smallest segment
Govt/public sector,
14.5 , 11% Govt/public sector, compared to self-
15.6 , 13%
employment and casual
Parnership, 3.4 , 3% Parnership, 4.9 , 4%
labour
Source: NSSO, IMA analysis Note: The above estimates exclude farmers and agricultural workers and are based on employment in enterprises only

The informal sector is also the area where job growth is
increasing much more rapidly than other sectors
Incremental employment
between 2004-05 and 2011-12 (mn)
Between 2004-05 and 2011-12, the informal sector
Informal sector 25.7 absorbed about 4 times the number of incremental
workers employed by the government and public sector,
and 3 times the number of workers added by the private
Formal private sector 9.1 sector
Govt./Public sector 6.5
Cooperatives, NGOs,
7.7
SHGs

An overwhelming majority of people are employed
in very small organisations
Over 72 mn people in rural areas and about 58 mn in urban areas (72% workers in the informal
sector) are employed in enterprises that employ less than 6 workers
Compared to rural
areas, more people in
cities and towns are
employed in relatively
larger organisations
*Proprietary and partnership firms Source: NSSO, IMA analysis

Trends in employment: States

10 states account for 75% employment…
Except the four states of Arunachal Pradesh, Punjab, Madhya Pradesh and Himachal Pradesh, 70.00
63.5
number of people above 15 years age with employment as principal occupation increased in all other
states between 2004-05 and 2015-16 60.00
Increase in employment
Change in number of people employed
50.00
47.2 Total employment in 2015-16
37.1
33.8 33.5 All figures in mn 40.00
27.6 27
24.3 24.3 30.00
23.2
16.6 15.3 20.00

13.2 12.8 1.3
9.1 9
5.7 2.3 1.4 10.00
11.7 3.4 3.4 0.9 0.5
1.8 0.6 0.6 0.5 0.3
-
3.17
0.31
0.45
4.59
0.95
0.15
1.97
0.92
0.11
0.36
1.64
0.08
5.52
1.09
0.02
0.01
9.89
7.53
3.09
1.53
(0.18)
9.81
1.02
2.26
(0.01)
5.77
(0.20)
HP (0.61)
0.02
0.08
(10.00)
Gujarat
WB
Kar
Odisha
Kerala
Sikkim
AP
J'khand
Delhi
Meghalaya
UP
Punjab
Rajasthan
Mah
Bihar
Manipur
Mizoram
ArP
P'cherry
Chh'garh
U'khand
Tripura
MP
Assam
J&K
Goa
Haryana
TN
N'land
Source: Labour Bureau, NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 30
…led by varying sources of employment
Maharashtra
registered the highest
increase in the
formal private sector
employment, higher
than the increase in
the informal sector,
followed by
Karnataka, Tamil
Nadu and Gujarat.
Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 31

The large states also have large part time employment
PTE, Jharkhand: KEY: g rowth between 2004-05

4.3, 28% 34% - 17% - 114% and 2015-16 in
Total employment - FTE - PTE Assam:
FTE, 11,
72%
9% - 17% - (-)33%
PTE, 1, 9%
PTE, Rajasthan:
4.1, 15%
5% - 5% - 4% Odisha:
0% - 26% - (-)69% FTE, 10.7,
UP: 91%
PTE, 1.4, 8%
FTE, 22.9, (-)2% - 19% - (-)81%
85%
PTE, 2.7, 4% WB:
18% - 39% - (-)71%
PTE, 2, 6% PTE, 1.8, 5% FTE, 15.2,
* FTE – Full time employment 92%
(those whose principal occupation FTE, 60.8,
status is ‘employed’); PTE – Part 96%
time employment (those who take FTE, 31.5, FTE, 35.3, 95%
up part time work while their 94%
principal activity is something else, Bihar: Source: NSSO, Labour Bureau, IMA analysis
such as ‘studying’) 18% - 31% - (-)55% © IMA India, 2017 www.ima-india.com 32
Type of overall job growth across states between 2004-05 and 2011-12
The surge in jobs must be examined in each state for its quality. Illustratively, UP has seen the greatest increase in number of those employed, with the
surge led by casual labour, even as those self-employed have also reduced in number. West Bengal is similar. Conversely, Karnataka has seen casual
labour shrink but regular salaried workers increase by 68%. The category ‘self employed’ is shrinking the fastest, with regular salaried workers still a
small but rising component of workforces
Self-employed Regular Salaried Casual labour
Change (in Change (in Change (in
'000) % change '000) % change '000) % change
Maharashtra 1,114.9 5% Maharashtra 3,387.4 34% UP 5,570.9 49%
Gujarat 1,025.9 8% Karnataka 2,397.3 68% Tamil Nadu 3,080.2 28%
Odisha 517.0 5% AP 2,299.7 43% West Bengal 2,949.5 27%
J&K 397.5 18% Gujarat 2,229.8 52% Bihar 2,636.7 30%
Chhattisgarh 353.3 6% Tamil Nadu 1,918.2 29% Rajasthan 2,044.8 47%
UP -5,560.6 -11% MP 21.6 1% Karnataka -2,794.9 -26%

Rajasthan -2,770.6 -14% Sikkim 0.2 0% Maharashtra -2,224.1 -14%
Tamil Nadu -2,160.2 -17% Manipur 15.7 13% Gujarat -1,750.1 -22%
MP -1,106.8 -6% Ar Pradesh 19.7 33% Odisha -1,104.6 -18%
Kerala -1,001.3 -17% Tripura 20.1 12% Chhattisgarh -360.8 -8%
Employment not keeping pace with number of people being
added to working age population
Increase in employment was

slower than working age
population growth between
2004-05 and 2015-16 in all
states (except Tripura).
Of particular concern,
however, is the slow or negative
growth in the most populous
states in the country, such as
Maharashtra, Uttar Pradesh
and Madhya Pradesh

More urban population was added
in the last decade, reversing past
trends
Contribution of rural and
urban population to total
decadal population growth
68.5 90.9
(37.6%) Rural (50.1%)
Urban
113.8 90.6
(62.4%) (49.9%)
1991-2001 2001-2011
Figures within brackets indicate percentage share of total
population increase
Highest net increase in urban population – Kerala (13.8

mn) followed by Andhra Pradesh (6.6), Tamil Nadu (5.2) and
Maharashtra (3.9)
Highest net increase in rural population – Bihar (14.7

mn), Uttar Pradesh (13.5), Rajasthan (4.4), Madhya Pradesh
(4.1)
Source: Census, IMA analysis © IMA India, 2017 www.ima-india.com 35
Increasing urban concentration
Number of Total population in Share of population in 2001 2011
UAs/cities with UAs/cities with UAs/cities in total
population population of urban population Number of towns 5,161 7,935
Over 1 0.1 - 1 Over 1 mn 0.1 - 1 Over 1 0.1 - 1 mn Number of villages 593,732 597,608
mn mn mn mn
The most striking feature of urbanisation in India is its
2001 35 359 108.3 mn 88.1 mn 38% 31%
concentration in a few cities. Urban agglomerations and
2011 53 415 160.7 mn 104.2 mn 43% 28% cities with over 100,000 population accounted for 71%
of all urban population in 2011.
While the population in million plus cities increased by
Distribution of villages by their population class (%) 48% between 2001 and 2011, this increase accounted for
56.7% 58% of the increase in India’s total urban population.
% share of total number of villages
% share of rural population 58% of the rural population are located in 20% of the
34.6% villages, which are relatively bigger in size, enabling
23.7% targeted marketing. Of these, nearly 73 mn live in villages
23.3% with more than 10,000 population each.
18.1% 16.1% 14.9%
8.7%
3.1% 0.8% This contrast in dispersion and concentration represents the
need for continued duality in marketing/distribution
Less than 1,000 1,000-1,999 2,000-4,999 5,000-9,999 10,000 and more strategies. Rural India continues to demand strong
Villages by population class distribution capability/sharing of infrastructure.
Source: Census, IMA analysis © IMA India, 2017 www.ima-india.com 36
Migration has more than doubled in the past decade
The share of employment as the reason for migration in
India increased from 8.2% in 1991 to 10.2% in 2011
Trend in migration (in mn)
453.6
Trend in migration for
1991 2001 2011 employment (in mn) Migration caused by
314.5
46.4 employment has increased at a
1991 2001 2011
faster rate of 4.7% CAGR
225.9 29.9 between 1991 and 2011, than the
3.5% rate of total migration
18.4
Source: Census, IMA analysis

Urban to urban migration has grown at a faster rate in the
past decade…
Migration patterns for employment from 1991 to 2011 (in mn)
100% 0.1 0.4 1.9
…compared to the
4.1 6.5 predominant rural to rural
80% 12.7
migration which characterised
60% 7.6 13.7
the previous decades
19.6
40% 0.0 0.2
1.2
1.3 1.0 This implies greater
1.7
20%
5.4 7.8 9.6
concentration of job-seekers
0% and workers in the cities,
1991
From rural to rural areas
2001
From urban to rural areas
2011
especially the large ones
From unclassified areas to rural areas From rural to urban areas
From urban to urban areas From unclassified areas to urban areas

Employment: The demand side

Employment in agriculture and manufacturing declined
significantly in 2015-16…
…with a concomitant rise in employment in construction and trade
Trend in sectoral employment The number of people employed
100% in the agriculture sector has
95% 53.1 58.2 46.3
90%
85%
consistently declined in the past
80% 71.4 90.0 102.9 decade.
75%
70% 43.7
65% 46.3 48.5 The number and share of workers
60% 27.6
55% 2.8 50.1 in the manufacturing sector too
50% 51.5
45% 2.7 1.8 has declined in 2015-16 after
40%
35% increasing between 2004-05 and
30%
25% 252.7
219.4
2011-12
20% 211.3
15%
10% The number of workers in the
5%
0% construction sector nearly doubled
2004-05 2011-12 2015-16 between 2004-05 and 2015-16
Agriculture Mining Construction Trade Other services Manufacturing

The services sector is the second largest employer after agriculture
In 2015-16, 46% of all 211 mn
Agriculture
workers were 16 mn
employed in the 46%
The predominance of
Short-term/temporary workers
agriculture sector
short-term workers in
151 mn agriculture and the
The agriculture Services 2 mn construction sector
sector also employed 33% demonstrate the importance
the maximum of seasonal and
number of short- 53 mn decentralised requirement
term and temporary Construction 4 mn of labour; and the risk
workers, followed by 11% they carry without a social
the construction security net
sector 48 mn
Manufa
cturing 1 mn
10%
Source: NSSO, Labour Bureau, IMA analysis © IMA India, 2017 www.ima-india.com 41
At 180.7 mn people, the informal sector is the biggest job
creator…
…followed with a lag by the government (30.5 mn) and private sectors (19.2 mn)
Source: NSSO, IMA analysis,

data pertains to 2011-12

Employment in the formal private sector however, has increased at
the fastest rate
Between 2004-05 and 2012, the maximum number of workers were added in the informal sector (25.7 mn, an increase
of 17%), followed by the private sector (9.1 mn, 90% increase) and the public sector (6.9 mn, 29% increase).
2004-05 – 155; 2011-12 – 180.7 2004-05 – 23.6; 2011-12 – 30.5 2004-05 – 10.1; 2011-12 – 19.2

Only a small segment of manufacturing sector employment is in
the organised segment
Factory employment in the organised sector has increased, although the total Nearly two-thirds of factories and factory
manufacturing sector has been decreasing. This points to reducing employment employment in the organised sector are
potential of the informal manufacturing sector. However, the share of non- accounted for by only seven states
operational factories have also increased from 4% in 2009-10 to 20% in
2013-14, indicating a problem with the older factories and potential stress in
workers on their rolls
Source: Annual Survey of Industries, various years.

Retail and wholesale trade employ a third of the workers in the
services sector
Distribution of employment in the services sector (% share of employment in the services sector
& number in mn)
Wholesale & retail trade 33%, 92% employed in the

48.1 informal sector
77% employed in the 22% employed in the

informal sector informal sector
Financial & insurance 3%,
Number of people
26% employed in the 67% employed in the

Transportation & storage 4.8 70% employed in the
informal sector 15%, 21.7 informal sector
informal sector
Accomodation & food
service 5%, 7.3 Information &
communication 3%, 3.9
Education 13%, 19.1
Administrative & support
service 5%, 7.4 Household employers 3%,
3.8
Public administration & Water supply, sewerage, waste
defence 5%, 7.4 management 1%, 1.4
Other service 5%, 7.3 Arts entertainment &
Health & social work 4%, Professional, scientific 3%, recreation 1%, 0.8
4.3 Electricity, gas & AC supply
5.1 1%, 1.4 Real Estate 1%, 1.0

And the agricultural sector employs more labourers than cultivators
Uttar Pradesh, Bihar and Andhra Pradesh have the highest number of agricultural labourers
In most states the number of agricultural
labourers outstrips the number of
cultivators by significant proportions.
Employment in the agriculture

sector (2011-12, mn)
Fishing and
Crop and aquaculture,
animal 1.64, 1%
production,
217.11, 99%
Forestry and
logging, 0.65,
0%
Source: Census 2011. A cultivator is a person who is engaged in cultivation of Government, institutional or private land in exchange of payment.
An agricultural labourer is a person who works on another person's land for wages and has no right of lease or contract on that land.
Relatively higher share of employment in the public and the
private sector is limited to a few states

State-wise employment in the informal sector, 2011-12
The top 10 states

account for 77% of
employment in the
informal sector
enterprises

State-wise employment in the Government and public
sector enterprises, 2011-12
The top 10 states

account for 69% of
employment in the
Government and the
public sector
enterprises

State-wise employment in the private sector, 2011-12
Formal private
sector employment
shows the maximum
concentration in
fewer states, with the
top 10 states
accounting for 81%
of employment

State-wise growth in employment
Maharashtra
registered the highest
increase in the
formal private sector
employment, higher
than the increase in
the informal sector,
followed by
Karnataka, Tamil
Nadu and Gujarat.

Manufacturing hubs are limited to a few districts, in contrast with
the services hubs which are more widespread across the country

Key industry sectors of private sector employment in the states (1)
Maharashtra Tamil Nadu Karnataka Gujarat Andhra Pradesh
Manufacturing (1.92 mn) Manufacturing (1.01 mn) Manufacturing (0.87 mn) Manufacturing (1.51 mn) Manufacturing (0.33 mn)
Information & Information & Information & Transportation & storage Construction (0.12 mn)
communication (0.44 mn) communication (0.31 mn) communication (0.55 mn) (0.09 mn)
Financial services (0.34 mn) Financial services (0.15 mn) Wholesale & retail trade (0.13 Information & Information &
mn) communication (0.07 mn) communication (0.11 mn)
Construction (0.28 mn) Wholesale & retail trade (0.14 Administrative support (0.08 Financial services (0.05 mn) Wholesale & retail trade (0.11
mn) mn) mn)
Transportation & storage Administrative support (0.08 Education (0.06 mn) Wholesale & retail trade (0.04 Administrative support (0.09
(0.25 mn) mn) mn) mn)
Wholesale & retail trade (0.25 Transportation & storage Financial services (0.05 mn) Construction (0.03 mn) Transportation & storage
mn) (0.06 mn) (0.09 mn)
Administrative support (0.14 Construction (0.05 mn) Construction (0.05 mn) Administrative support (0.02 Financial services (0.07 mn)
mn) mn)
Education (0.10 mn) Education (0.05 mn) Professional & technical Electricity, gas & water supply Mining (0.07 mn)
services (0.04 mn) (0.02 mn)
Professional & technical Real Estate (0.03 mn) Health (0.04 mn) Health (0.02 mn) Education (0.06 mn)
services (0.10 mn)
Health (0.05 mn) Hospitality (0.03 mn) Mining (0.03 mn) Mining (0.01 mn) Health (0.05 mn)

Key industry sectors of private sector employment in the states (2)
Uttar Pradesh West Bengal Haryana Rajasthan Madhya Pradesh
Manufacturing (0.63 mn) Manufacturing (0.43 mn) Manufacturing (0.50 mn) Manufacturing (0.28 mn) Manufacturing (0.28 mn)
Construction (0.10 mn) Financial services (0.12 mn) Information & Construction (0.18 mn) Construction (0.16 mn)
communication (0.11 mn)
Financial services (0.08 mn) Construction (0.11 mn) Construction (0.05 mn) Transportation & storage Wholesale & retail trade (0.08
(0.05 mn) mn)
Administrative support (0.07 Wholesale & retail trade (0.06 Financial services (0.03 mn) Education (0.03 mn) Education (0.06 mn)
mn) mn)
Information & Transportation & storage Wholesale & retail trade (0.03 Information & Financial services (0.05 mn)
communication ((0.07 mn) (0.06 mn) mn) communication (0.03 mn)
Wholesale & retail trade (0.07 Information & Transportation & storage Wholesale & retail trade (0.03 Mining (0.03 mn)
mn) communication ((0.05 mn) (0.03 mn) mn)
Mining (0.05 mn) Professional & technical Education (0.02 mn) Administrative support (0.02 Transportation & storage
services (0.04 mn) mn) (0.03 mn)
Professional & technical Administrative support (0.04 Health (0.01 mn) Hospitality (0.02 mn) Information &
services (0.03 mn) mn) communication (0.02 mn)
Transportation & storage Health (0.03 mn) Professional & technical Electricity, gas & water Administrative support (0.02
(0.02 mn) services (0.01 mn) supply (0.02 mn) mn)
Education (0.02 mn) Electricity, gas & water Administrative support (0.003 Financial services (0.02 mn) Electricity, gas & water
supply (0.03 mn) mn) supply (0.01 mn)
Top states by formal private sector employment, industry
sector-wise, 2011-12 (in ‘000)
Manufacturing Professional & scientific Construction
services
Maharashtra 1,921.03 Maharashtra 104.07 Maharashtra 279.12
Gujarat 1,510.98 West Bengal 41.61 Rajasthan 179.35
Tamil Nadu 1,010.77 Karnataka 41.54 Madhya Pradesh 156.33
Karnataka 872.80 Uttar Pradesh 25.96 Bihar 153.66
Uttar Pradesh 630.87 Delhi 22.75 Andhra Pradesh 122.63
Haryana 495.73 Andhra Pradesh 13.71 West Bengal 110.42
West Bengal 429.20 Bihar 12.17 Uttar Pradesh 102.03
Andhra Pradesh 333.84 Goa 10.38 Jharkhand 80.32

Jammu &
Punjab 319.79 Gujarat 10.05 60.36
Kashmir
Rajasthan 283.54 Tamil Nadu 9.85 Odisha 56.38
Top ten states. For full list, see appendix © IMA India, 2017 Source: NSSO, IMA analysis www.ima-india.com 55
Information & Financial services Wholesale & retail
communication
Karnataka 245.60 Maharashtra 335.94 Maharashtra 245.60
Maharashtra 142.02 Tamil Nadu 147.47 Tamil Nadu 142.02
Tamil Nadu 127.22 West Bengal 119.33 Karnataka 127.22
Haryana 112.65 Uttar Pradesh 79.41 Andhra Pradesh 112.65
Andhra Pradesh 77.25 Delhi 78.87 Madhya Pradesh 77.25
Delhi 68.06 Andhra Pradesh 74.34 Delhi 68.06
Gujarat 68.01 Karnataka 50.31 Uttar Pradesh 68.01
Uttar Pradesh 66.83 Madhya Pradesh 48.79 Kerala 66.83
Kerala 63.17 Gujarat 46.97 West Bengal 63.17
West Bengal 43.66 Kerala 45.47 Gujarat 43.66
Transportation & storage Hospitality Real Estate
Maharashtra 248.67 Maharashtra 34.83 Tamil Nadu 33.19
Gujarat 93.41 Tamil Nadu 27.16 Maharashtra 18.72
Andhra Pradesh 86.71 Rajasthan 20.65 Delhi 16.99
Tamil Nadu 62.37 West Bengal 12.22 Punjab 6.09
West Bengal 55.92 Goa 6.43 Odisha 3.32
Rajasthan 52.30 Uttar Pradesh 6.22 Haryana 3.06
Delhi 42.28 Delhi 6.22 Bihar 0.79
Punjab 27.73 Himachal Pradesh 4.56 Chandigarh 0.66
Madhya Pradesh 26.93 Kerala 3.93 Goa 0.59
Haryana 26.38 Jharkhand 2.90 Andhra Pradesh 0.48
Administrative & support Education Electricity, gas, water,
services sewage, waste
Maharashtra 136.09 Maharashtra 104.42 Maharashtra 42.62
Andhra Pradesh 94.02 Karnataka 62.91 Andhra Pradesh 41.05
Tamil Nadu 83.56 Andhra Pradesh 60.28 West Bengal 30.99
Karnataka 77.13 Madhya Pradesh 55.16 Chhattisgarh 24.63
Uttar Pradesh 68.82 Tamil Nadu 46.28 Gujarat 23.15
Delhi 60.25 Rajasthan 31.73 Rajasthan 20.57
West Bengal 37.09 West Bengal 24.32 Uttar Pradesh 18.88
Rajasthan 24.72 Bihar 23.72 Kerala 16.72
Gujarat 23.38 Haryana 19.19 Karnataka 16.38
Madhya Pradesh 15.98 Uttar Pradesh 16.11 Tamil Nadu 15.24
Employment: The supply side

One of the key supply constraints to the job market has been the
declining presence of women…
In 2015-16, only 35% working age women were employed compared to 61% of working age men
Composition of the workforce, by gender: Composition of the workforce, by gender:
Rural India Urban India
400 36.3% 40% 160 25%
350 35% 140 19.4% 19.8% 17.8%
34.7% 21.5% 20%
300 30% 120
250 30.3% 25% 100 15%
29.2%
200 20% 80
150 223.0 15% 60 10%
189.6 239.3
100 229.9 10% 40 78.8 99.3 110.5
65.3 5%
50 100.6 127.1 104.0 94.9 5% 20
15.7 21.6 24.6 23.9
0 0% 0 0%
1999-00 2004-05 2011-12 2015-16 1999-00 2004-05 2011-12 2015-16
Male Male
Female Female
% share of women in workforce (right axis) % share of women in workforce (right axis)
Source: NSSO, Labour Bureau, IMA analysis © IMA India, 2017 www.ima-india.com 60
Between 2004-05 and 2011-12 the number of employed women in
rural India increased only for Government and public sector jobs
Rural public sector, Rural private sector Rural informal sector
2004-05 (mn, % share) 2004-05 (mn, % share) 2004-05 (mn, % share)
Women, Women, Women,

2.2, 22% 0.6, 18% 20.2, 23%
Men, Men, 2.9, Men, 67.4,

8.0, 78% 82% 77%
Rural public sector Rural private sector Rural informal sector

Women, Women,
4.2, 29% 0.5 , 9% Women,
16.7 , 17%
Men, 10.3, Men, 5.2 ,

91% Men, 81.3 ,
71% 83%

In urban areas, the number of women employed by the private
sector more than doubled, but their share remain unchanged
Urban public sector, Urban private sector Urban informal sector
Women,
2.4, 18% Women,
0.9, 14% Women,
9.8, 14%
Men, 11.0, Men, 5.7, Men, 57.7,
82% 86% 86%
Urban public sector Urban private sector Urban informal sector

Women, Women,
Women,
3.2 , 21% 12.2 , 15%
1.9 , 14%
Men, 12.4 , Men, 11.7 ,

79% 86% Men, 69.8 ,
85%

Own account workers constitute the bulk of the employed men in
both rural and urban areas
Employment of men in rural areas, 2011-12 (mn) Employment of men in urban areas, 2011-12 (mn)
(% within brackets denote share of total rural employment) (% within brackets denote share of total rural employment)
Own account Regular Casual Own account Regular Casual
Employer Helper Employer Helper
worker salaried labour worker salaried labour
34.41 4.95 10.98 30.06 6.01 19.32

Informal sector 0.95 (1%) Informal sector
(32%) (5%) (10%) (28%) 30.60 (31%) 2.59 (3%) (6%) (19%) 11.27 (11%)
Govt./PSU 0.00 0.00 0.00 7.86 (7%) 2.39 (2%) Govt./PSU 0.00 0.00 0.00 12.01 0.40
(12%) (0.4%)
Private sector 0.00 0.00 0.00 3.83 (4%) 1.34 (1%) Private sector 0.00 0.00 0.00 11.09
(11%) 0.57 (1%)
Cooperatives, non- 0.02 0.10 Cooperatives, non- 0.90 0.07
0.00 0.00 0.73 (1%) 0.00 0.00
profit (0.02%) (0.09%) profit 0.05 (32%) (1%) (0.1%)
0.20 0.25 0.79 0.09
Domestic help 0.00 0.00 0.00 Domestic help 0.00 0.00 0.00
(0.2%) (0.2%) (1%) (0.1%)
0.15 0.03 0.14 1.13
Others 1.21 (1%) 0.00 0.80 (1%) 6.01 (6%) Others
(0.1%) 0.76 (1%) (0.03%) (0.1%) (1%) 1.62 (2%)
Total 35.64 (34%) 0.95 (1%) 5.10 (5%) 24.40 (23%) 40.15 (38%) Total 6.15 45.25
31.40 (32%) 2.62 (3%) (6%) (46%) 14.01 (14%)
Own account workers are those who operate their enterprises on their own account or with one or a few partners, but without hiring any labour. Helpers in household enterprises are mostly
family members who are engaged in their household enterprises, working full or part-time, but without receiving any regular salary or wages
Over half the employed women in urban areas are regular salaried
workers
Employment of women in rural areas, 2011-12 (mn) Employment of women in urban areas, 2011-12 (mn)
(% within brackets denote share of total urban employment) (% within brackets denote share of total urban employment)
Own account Regular Casual Own account Regular Casual
Employer Helper Employer Helper
worker salaried labour worker salaried labour
Informal sector 7.14 (31%) 0.10 (0.4%) 3.77 (16%) 1.49 (6%) 4.17 (18%) Informal sector 4.78 (23%) 0.08 (0.4%) 2.56 (12%) 3.17 (15%) 1.65 (8%)
Govt./PSU 0.00 0.00 0.00 2.78 (12%) 1.45 (6%) Govt./PSU - - - 3.14 (15%) 0.08 (0.4%)
Private sector 0.00 0.00 0.00 0.39 (2%) 0.15 (1%) Private sector - - - 1.76 (9%) 0.11 (1%)
Cooperatives, non- Cooperatives, non-

0.01 0.00 0.00 0.36 (2%) 0.02 (0.1%) 0.00 - 0.00 0.59 (3%) 0.01 (0.1%)
profit profit
Domestic help 0.00 0.00 0.00 0.38 (3%) 0.15 (1%) Domestic help - - - 1.71 (8%) 0.27 (1%)
Others 0.16 (1%) 0.00 0.11 (0.5%) 0.10 (0.4%) 0.62 (3%) Others 0.08 (32%) - 0.02 (0.1%) 0.41 (2%) 0.22 (1%)
Total 7.31 (31%) 0.10 (0.4%) 3.88 (17%) 5.49 (24%) 6.55 (28%) Total 4.87 (24%) 0.08 (0.4%) 2.58 (13%) 10.78 (52%) 2.35 (11%)
Own account workers are those who operate their enterprises on their own account or with one or a few partners, but without hiring any labour. Helpers in household enterprises are mostly
family members who are engaged in their household enterprises, working full or part-time, but without receiving any regular salary or wages
The share of women in employment has declined primarily on
account of their moving out of labour force
In 2011-12, 36% more women (~66 mn) than in 2004-05, in the working age group chose not to work
The largest decline occurred in the age group between 35 and 54, where the number of women out of
labour force in each of the 5-yrs age groups increased by 50% or more
2004-05 (mn) 2011-12 (mn)
100% 100%
90% 90% 15.8
80% 16.7 80% 63.6
76.0 16.9 13.7 12.4 10.1
70% 26.0 24.7 19.6 15.2 70% 32.6 33.6 28.1 25.3 21.2 18.6 15.3
9.7 20.4
60% 60% 13.5
18.8 25.8
50% 19.6 50%
40% 3.5 40% 33.9
30% 95.3 30% 113.4 8.0
20% 19.0 19.4 20.2 15.3 12.8 8.9 20% 17.8 14.8 12.4 8.8
10.0 15.9 16.3
10% 13.0 16.2 3.5 10% 13.1 9.1
3.7
2.4 7.6 2.3
0% 3.9 0% 1.6
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-60
61-65
above 65
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-60
61-65
above 65
0-14
0-14
Age group Age group
Employed Unemployed Studying OLF Employed Unemployed Studying OLF
OLF : out of labour force (not including students) © IMA India, 2017 Source: NSSO, IMA analysis www.ima-india.com 65
The number of women who chose not to seek employment
increased by 38% in rural areas and 32% in urban areas
This trend assumes greater significance in view of the fact that number of women employed
declined by 20% in rural areas and increased marginally – by 8% - in urban areas
Contribution of each occupation status to changes in Contribution of each occupation status to changes in
different age groups of rural women between 2004-05 different age groups of urban women between 2004-
and 2011-12 05 and 2011-12
39%
67%
128% 133% 132% 120% 148%
98% 102% 92% 95% 84% 82% 87% 99% 94% 100%
1652% 199% 263% 274% 200% 124% 155%
-1806% -12%
-6% -29%
0-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60 61-65 above 0-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60 61-65 above
65 65
Employed Unemployed Studying Out of labour force Employed Unemployed Studying Out of labour force

In contrast, the shift out of labour force among men has taken
place only for a small segment in the population over 60 years old
2004-05 (mn) 2011-12 (mn)

0.7
100% 2.0 0.9 0.5 0.4 0.4 0.5 0.5 1.0 100% 2.0 1.0 1.5 0.4 0.4 0.5 0.5 1.1 3.5
90% 6.7 3.3 90% 14.0
80% 74.0 4.3 80% 63.1 6.2
70% 27.7 12.2 70% 16.3
60% 60% 43.0
50% 42.7 39.1 38.0 32.1 26.9 21.0 21.3 50% 48.8 44.5 43.2 37.9 32.5 25.4 25.3
40% 40.1 40%
30% 112.4 8.4 30% 129.6 40.7 10.8
20% 25.8 8.6 20% 10.7
10% 10% 18.2
0% 4.4 0% 2.2
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-60
61-65
above 65
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-60
61-65
above 65
0-14
0-14
Employed Age group Studying
Unemployed OLF Employed Age group
Unemployed Studying OLF
OLF : out of labour force (not including students) Source: NSSO, IMA analysis
Almost the whole incremental male population between 2004-05
and 2011-12 across age groups joined the workforce
The only exception to this trend are the below 19 years age group in both rural and urban areas (also, the 20-24 years
age group in urban India), where there has been a massive move towards continuing higher education
Contribution of each occupation status to changes in Contribution of each occupation status to changes in
different age groups of rural women between 2004-05 different age groups of urban women between 2004-
and 2011-12 05 and 2011-12
3% 1%
2% 1% 1% 1% 1% 1% 3% 9% 2% 0% 1% 3% 7%
33% 26%
54% 63%
77%
101%
88%
101%
103%
99%
63%
97%
94%
89%
131% 170%
99%
99%
99%
98%
97%
94%
91%
37%
11%
74%
74%
22%
66%
-2% -1%
46%
-60%
-26%
30%
-3%
0-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60 61-65 above 0-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60 61-65 above
65 65
Employed Unemployed Studying Out of labour force Employed Unemployed Studying Out of labour force

The bulk of the incremental female population opted for
household duties…
…despite late marriage and higher education
Occupation of incremental population between

2001 and 2011 (mn) About 36% of incremental urban
100%
women population took up
90%
11.6
household duties, with about 26%
80% 25.4 joining the workforce.
70%
60% 11.1 25.4
50%
30.8
The corresponding figures for rural
2.0
40% 1.0 India were 21% and 23%. More
30% 9.4
20%
26.2
6.5
24.1 strikingly, the number of dependent
15.3
10%
0.4 8.5
women in rural areas decreased by
1.6
0% 0.4
0.7 0.5 over 17 mn, driven by a significant
-10%
-20%
-17.4 -13.0
increase in women’s education..
-30%
Urban women Urban men Rural women Rural men
Household duties Dependents Pensioners Others Workers Students

Although the number of women marrying late has increased…
…as they study more, but only a small share is joining the workforce
Share of women marrying after the age of 25 years increased between

2001 and 2011 from More than a third of urban married women
got married after the age of 25 (% of
• 14% to 17% (an increase of 18 mn) in rural India (17% to married women)
22% for men – an increase of 83 mn)
• 30% to 35% (an increase of 24 mn) in urban India (34% to 14%
(47 mn)
17%
(65 mn) 30%
40% for men – an increase of 89 mn) (40 mn)
35%
(64 mn)
56%
Educational levels of women getting married in the decade between 2001 (190 mn) 62%
and 2011 increased, but not commensurately with the increase in the age (239 mn) 55%
53%
(73 mn)
of marriage (96 mn)
30%
Among the 72 mn increase in the number of women who (100 mn) 21%
(81 mn)
15% 12%
(21 mn)
married between 20-25 years of age, only 8 mn completed (19 mn)
graduation or postgraduation. The corresponding number 2001 rural 2011 rural 2001 urban 2011 urban
among the 42 mn more women who married after attaining 26 Less than 20 years 20-25 years 26 years and above
years age was a little higher at 12 mn. Source: Census, IMA analysis

As a consequence, women engaged in domestic duties are better
qualified than a decade ago
Educational qualification of women occupied with domestic

duties (mn)
0.1 0.2
An untapped talent reservoir?
0.8 1.8 0.3 0.7
100%
6.8 0.1 4.1 7.5
90% 11.4 0.1 0.2
80%
25.5 10.9 17.0
70% 31.4
60%
50% 18.1
23.0
Nearly 8.5 mn women in urban areas
40%
30% 46.9
and over 2 mn women in rural areas,
43.7
20%
15.6 15.9
who were engaged in domestic duties
10%
0% in 2011, were degree or technical
Rural 2001 Rural 2011 Urban 2001 Urban 2011 diploma holders
Technical degree or diploma equal to degree or postgraduate degree
Graduate and above other than technical degree
Technical diploma or certificate not equal to degree
Matric/secondary but below graduate
Below matric/secondary
Illiterate Source: Census, IMA analysis

Education: Some improvement

Education: Some improvement
Between 2001 and 2011 – 20 mn lesser illiterates, 38 mn more with primary education, 110 mn
more with secondary/higher secondary education, 4 mn more with diplomas and certificates,
and 31 mn more graduates and postgraduates
The context The future
Educational qualification in India (in mn) Possible scenarios for 2021 (population in
mn) (scenario 2 assumes double rate of
change)
68.3 Graduate & above Graduate & above
111 162
37.7 8.3 68
Diploma Diploma
4.1 8 15 25
20.6 317.8
207.3 318 439
142.0 2.8 Middle, secondary & Middle, secondary &
146.7 184.2 549
higher secondary 184 higher secondary
103.3 208
90.6 164.9 182.1 182 154 Primary
Primary 181
143
479.2 447 385 Below primary
467.9 447.2 Below primary 306
2011 (actual) 2021 (scenario 2021 (scenario Illiterate

Illiterate
1991 2001 2011 1) 2)

Fewer illiterates, significantly more with higher secondary education
among men…
Number of illiterates
has declined fast, with
a concomitant increase
in the population
segment with middle to
higher secondary
education. The growth
in the number of
graduates and
postgraduates has been
sluggish.

…as well as women
In the age groups

of 20-24 and 25-
29, the increase
among women
graduates and
postgraduates
between 2001 and
2011 were the
same – indicating
the catching up by
women in higher
education

The most populous states also have the greatest number of
graduates and postgraduates, but their share in a state’s population
vary widely The top 10 states by educational
7% of qualifications account for 75% of India’s 3% of
population graduates and postgraduates population
8% of Delhi (with 11 mn graduates &

population postgraduates) and Goa (with 0.6
mn), however, have the highest
8% of graduate to population ratio of
population 16% and 10%, respectively
5% of
population
7% of
population 4% of
population 4% of
population
5% of
5% of population
population Source: Census, IMA analysis
Numbers in million and & %
distribution between men and women © IMA India, 2017 www.ima-india.com 76
Technically skilled talent pool with formal education is
concentrated in a few states
Top 5 states by technical degree Top 5 states by technical Top 5 states by technical degree Top 5 states by technical
account for 62% of employable diplomas account for 59% of students account for 75% of diploma students account for
talent pool employable talent pool employable talent pool 59% of employable talent pool
Employable talent pool Employable talent pool Number of students Number of students
with technical degree* with diploma/certificate pursuing technical pursuing diploma/certificate
(in ‘000) in technical subjects* (in degree courses* (in ‘000) courses in technical
547 528 ‘000) subjects* (in ‘000)
134
113
371 1,008 93
78 67
563 60 58
179 171 479 405 46 39
305 39
Maharashtra
Maharashtra
Tamil Nadu
Tamil Nadu
Andhra Pradesh
Andhra Pradesh
Karnataka
Karnataka
West Bengal
Uttar Pradesh
Maharashtra
Tamil Nadu
Maharashtra
Gujarat
Tamil Nadu
Andhra Pradesh
Andhra Pradesh
West Bengal
Uttar Pradesh
Uttar Pradesh
Source: NSSO, IMA analysis; *Technical subjects include engineering & technology, agriculture, medicine, etc.
Data pertains to 2011-12
Top 25 cities with engineering and technology graduates and
postgraduates, 2011
Bangalore, 454
Hyderabad, 264
Gurgaon, 40
Greater Mumbai, 185
Chennai, 204 Pune, 150 Coimbatore, 38
Pimpri Chinchwad , 64 Navi Mumbai , 36

Delhi , 200 Vadodara, 43
Kanpur, 34
Nagpur, 51 Patna, 34
Jaipur, 45
Ahmadabad, 83
Bhubaneswar, 34
Lucknow, 51 Faridabad, 33
Bhopal, 41 Indore, 33
Kolkata, 58 Ghaziabad, 50
Visakhapatnam, 50 Thane, 34
Numbers in thousands; for list of top 100 cities see appendix Source: Census, IMA analysis
Top 25 cities with medicine graduates and postgraduates, 2011
Greater Mumbai, 58
Bangalore, 49
Hyderabad, 46
Delhi , 44 Bhopal, 8
Ahmadabad, 25 Pimpri Chinchwad , 8

Chennai, 28
Kolkata, 13 Lucknow, 13 Indore, 8
Pune, 22 Nashik , 8
Jaipur, 13 Thane, 7
Thiruvananthapuram , 8 Visakhapatnam, 7
Patna, 7
Surat, 10
Nagpur, 13
Vadodara, 9 Srinagar, 8 Navi Mumbai , 6
Chandigarh , 6
Aurangabad , 7
Top 25 cities with graduates in subjects other than engineering,
technology and medicine, 2011
Delhi, 1,411
Greater Mumbai, 1,214
Ghaziabad, 168
Bangalore, 793
Hyderabad, 602
Kolkata, 618 Thane, 155
Ahmadabad, 506
Lucknow, 342 Kalyan Dombivali , 145
Jaipur, 287 Bhopal, 139
Chennai, 434
Surat, 190 Ranchi, 138
Pune, 330 Visakhapatnam, 138
Kanpur, 271
Patna, 211
Vadodara, 170 Guwahati , 132
Nagpur, 204 Ludhiana , 136
Indore, 173 Allahabad , 137
Top 25 cities with postgraduates in subjects other than
engineering, technology and medicine, 2011
Delhi, 510
Greater Mumbai, 303 Allahabad , 68

Lucknow, 180
Bangalore, 265
Chennai, 201 Meerut, 58
Kanpur, 139
Hyderabad, 231 Bhopal, 91 Agra , 57
Ahmadabad, 132
Jabalpur , 57
Nagpur, 95
Jaipur, 172 Chandigarh , 54
Faridabad, 53
Kolkata, 123
Pune, 137
Ghaziabad, 101 Gurgaon, 75 Patna, 51
Bhubaneswar, 53
Indore, 96 Gwalior, 53
The transformation reflects in the educational profile of the
workforce…
Educational qualification of workforce: Rural & Between 2004-05 and 2011-
Urban India 12, 10 mn g raduates and 5
6.73 11.98 mn postg raduates were
100%
95% 21.20 31.56 Postgraduate added to the workforce
90% 6.83
85% 6.87
80% Graduate
75% 129.29
70%
65% 163.94 The share of illiterates still account
60% Diploma/
55% Certificate for nearly a third of those
50% 109.66
45% Up to higher employed. The share of graduates
40% 110.61
35% secondary and postgraduates has nearly
30%
25% Up to primary doubled in two decades, but they
20% 172.49
15% 139.46 account for less than a tenth of the
10%
5% Illiterate workforce.
0%
2004-05 2011-12
Workers in the informal sector are characterised by the low levels
of higher education
The education profile:
• Informal sector: Less than 10% are graduates; nearly 90%are educated only up to the primary and
higher secondary level
• The formal sector: 30% are graduates and above; but over 66% are still at the level of primary and
higher secondary education
Source: NSSO, IMA analysis, all ages

...but, a large proportion of the higher educated remaining out of
the workforce is a matter of concern
Nearly half of the g raduates and over 40% of the postg raduates in both rural and urban
areas are out of the workforce
Graduates constitute a quarter of the unemployed
Share of each educational qualification labour force and the postgraduates another tenth
level in employment, 2015-16 (%) Nearly 15 mn graduates and 4 mn postgraduates
are not even seeking employment
59.7
58.9
57.9
54.7
54.6
52.2
51.7
51.2
51.1
48.3
46.4
46.4
45.5
43.2
42.6
41.4
38.2
35.6
33.6
37
Rural Urban
Illiterate Below primary

Primary Middle
Secondary Higher secondary
Certificate (undergraduate) Diploma/certificate

Talent supply
Between 2012-13 and 2015-16, nearly 25 mn people completed their g raduation and 6 mn
completed their studies at postg raduation or higher level
Graduates and postgraduates are being added

to the employable talent pool at a faster rate
than a few years ago.
While on average 2.5 mn graduates and 1.1

mn postgraduates joined the employable
talent pool each year between 2004-05 and
2011-12, over the next four years, the figures
increased to 6.2 mn and 1.4 mn respectively.
In the last four years, more women with graduate and
postgraduate qualification have been added to the
employable talent pool than men
Source: NSSO, All India Survey on Higher Education, IMA analysis
Specialised courses have greater demand…
The share of unemployed and those who chose not to seek employment increased in 2011-12 over 2004-05, in the talent pool
with technical degrees. However, the share of unemployment among those with diploma or certificates in engineering and
medicine declined during the same period, with a concomitant increase in the share of those not seeking employment
Employed Unemployed Out of labour force
2004-05 2011-12 2004-05 2011-12 2004-05 2011-12

Diploma/certificate Occupation status of graduates and
above graduation - postgraduates: 2015-16 (%)
agri 0.19 0.04 0.03 0.00 0.02 0.02
Diploma/certificate
above graduation - 37.5 33.4 32 28.3
38.9
engineering & 4
technology 0.97 1.43 0.16 0.15 0.13 0.28 11.6 6.6
10.5 10.6
Diploma/certificate
above graduation -
medicine 0.31 0.57 0.02 0.01 0.03 0.11 61.4 67.7
50.6 51.9 55
Diploma/certificate
above graduation -
other subjects 1.69 1.57 0.17 0.14 0.36 0.36
Degree in Humanities Science Engineering, Accounting Medical
agriculture, tech & & law sciences
engineering, management
technology and Employed Unemployed Out of labour force
medicine 1.61 2.35 0.11 0.23 0.16 0.31
Source: NSSO, IMA analysis Source: Labour Bureau
Preferred courses
10 subject streams accounted for 88% of graduating students and 65% of those who completed
their post-graduation, MPhil and PhD. Engineering, law and science have produced more
postgraduate students compared to other subject streams
Source: All India Survey on Higher Education, IMA analysis

Industry sectors have scaled up their employee education levels…
Share of graduates and postgraduates among the workforce among various industry sectors
1999-2000 2011-12
83%
68% 74%
57% 65% 64%
52%
43% 42% 47%
34% 42% 40% 39% 38% 38% 37%
28% 25% 24% 33% 30% 30%
21% 21% 21% 19% 20%
13%
9%
Electrical and…
Electrical and…
Professional services
Communication
Automotive (M)
Community
Real Estate
Financial services
Healthcare & social work

R&D
Petrochem (M)
IT
Oil & gas
Public admin & defence

Pharma (M)
Publishing (M)
Automotive (M)
Public utility
Communication
Real Estate
Financial services

R&D
Petrochem (M)
Trade
Education
IT
Publishing (M)
These numbers reflect graduates/post graduates across all educational streams

IT
54%
33%
Oil & gas
25%
R&D
Electrical and Electronics
21%20%
Public utility
Education

Automotive (M)
15%15%14%
Publishing
12%10%
Petrochem
1999-2000
Communication
Financial services 8% 8% 6%
Paper
Other Manufacturing
Real Estate
Automotive (S)
Transport
Mining
5% 5% 4% 4% 3% 3% 3%
IT
41%
© IMA India, 2017

Automotive
32%

30%
Electrical and Electronics

R&D
26%24%
Communication
14%
Public utility
Share of employees with technical education among various industry sectors
Petrochem
12%11%10%
…and some are recruiting more with technical skills
Publishing
Oil & gas
2011-12
Paper
Financial services
Pharma
These numbers reflect graduates/post graduates only from technical courses – technology, medicine etc
Community
9% 9% 9% 9% 8% 8%

Real Estate
Automotive (S)
7% 7% 6%
Other Manufacturing
www.ima-india.com 89
Food and Beverages

4% 3%
The share of the technical skilled in the workforce hasn’t improved
significantly
Share of men and women with technical

People with technical education qualifications among employed
constitute a miniscule share of population
2.7%
the total employed population – 2.6%
a situation which has not
changed much in two decades. 1.5%
Women, however, have 0.7%
1.0%
0.6%
performed marginally better 0.3%
0.1%
than men
1993-94 2011-12
Technical Degree - Male Technical Degree - Female
Diploma/Certificate - Male Diploma/Certificate - Female

Mismatch between available jobs and the job-seekers’ skill sets
and experience are the key reasons for unemployment
Key reasons for Key reasons for

unemployment among rural unemployment among urban
graduates:2015-16 graduates:2015-16
Other Other
problems problems
Mismatch 19%
19%
between Mismatch
available Mismatch in between
jobs and remuneration available
Mismatch in skill/ expectation jobs and
remuneration experience 17% skill/
expectation 56% experience
25% 64%

Number of people with vocational training increased from 45.3 mn to
78.3 mn between 2009-10 and 2011-12…
Age-wise distribution of population with vocational training

15% The percentage share of
13%
14%
13% people with vocational
12% training in the working age
11%
11% 10%
10% 9% population increased from
8% 8% 7% in 2009-10 to 12% in
6% 7% 7%
6% 5% 2011-12
4%
Note: Data on vocational training is available for

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60
the entire working age group of 15-60 for only 2009-
2009-10 2011-12 10 and 2011-12

The employed are turning to vocational training to strengthen
their skills The percentage share of people with vocational training in the working age
population increased from 45.3 mn to 78.3 mn between 2009-10 and 2011-12:
number of people receiving on-the-job training more than doubled in two years
Trend in vocational training,
Different types of vocational training availed, age-wise
% share (no in mn) 2009-10
66.5%
8% 7% (5.8)
61.3%
59.0%
54.9%
(3.5)
48.0%
45.3%
44.6%
19%
41.9%
22%
37.8%
(14.5)
29.9%
27.4%
27.3%
(10.0)
25.3%
23.0%
22.8%
22.2%
22.1%
21.8%
21.6%
20.3%
20.0%
19.4%
19.1%
18.3%
16.3%
15.3%
14.7%
13.3%
11.8%
30%
5.7%
23%
5.4%
4.9%
3.6%
3.4%
3.2%
2.4%
(10.4) (23.5)
Receiving formal training Received formal training On-the-job training Other non-formal training
47% 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-60
44%
(21.3) 2011-12
61%
(34.4)
58%
53%
51%
45%
44%
38%
35%
34%
34%
31%
31%
30%
29%
29%
29%
26%
25%
24%
23%
2009-10 2011-12
21%
21%
17%
15%
15%
14%
13%
13%
12%
Receiving formal training
7%
5%
4%
4%
3%
3%
1%
Received formal training

On-the-job training Receiving formal training Received formal training On-the-job training Other non-formal training
Other non-formal training Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 93
People with vocational training more employable than graduates
Vocational training: 2009-10 Vocational training: 2011-12
Compared to the pool of
Studying
7%
OLF
10%
Studying
6%
OLF g raduates and
9%
postg raduates, those with
Unemployed Unemployed
3% 2%
vocational training have
Employed Employed been doing better in
80% 83% terms of employment.
Obtaining vocational
Graduate & above: 2009-10 Graduate & above: 2011-12 training can be
Studying
OLF OLF
26%
considered to be one
22%
8% Studying explanatory factor for the
10% predominance of the
Employed Employed secondary educated in
Unemployed 64% Unemployed 59% the employed population
6% 5%

Training preferences: Computer and electrical/electronic engineering top
the chart although other vocations top the employment chart
Field of training, 2011-12 Employment rates of various disciplines of vocational
training: 2011-12
Computer trade 25.3% Photography 99% 1%
Motor mechanic 12.3% Leather-related 98%
Electrical & electronic engg 11.2% Motor mechanic 96% 1%
Textile-related 10.7% Civil engg, construction 95% 2%
Other 9.8% Travel & tourism 94%
Health & paramedical 7.2% Electrical & electronic engg 90% 2%
Mechanical engg 6.9% Chemical engg 90% 4%
Office & business-related 4.2% Creative arts 89% 8%
Personal care 2.9% Mechanical engg 89% 5%
Civil engg, construction 2.7% Hospitality 86% 7%
Agri-related 84% 16%
Agri-related 1.3%
Mass communication 84% 7%
Arts & crafts 1.1% Health & paramedical 81% 15%
Childcare 1.1% Office & business-related 79% 17%
Hospitality 0.8% Childcare 78% 16%
Creative arts 0.7% Other 75% 18%
Mass communication 0.5% Computer trade 70% 18%
Printing technology 0.4% Arts & crafts 69% 29%
Chemical engg 0.3% Printing technology 57% 29%
Photography 0.3% Personal care 56% 43%
Travel & tourism 0.2% Source: NSSO, IMA analysis Textile-related 54% 43%
Leather-related 0.1% © IMA India, 2017 Employed Unemployed OLF www.ima-india.com 95
Linear projections: 2020-21
Caveat: Education and employment are social and economic choices which depend on a number of complex variables, which future
projections uncertain. The projections used in this report are based on the assumption that the conditions which shaped the employment
scenario from 2004-05 to 2011-12 will continue up to 2020-21. This of course is an overtly simplistic assumption which is useful only
to the extent to understand how the near-term future might look like if the present policies and other conditions continue.
Ageing population to exert greater employment demand
2021
In 2021 the age group of 0-

19 years – the age group that
increasingly comprises
students – will shrink by 44
mn, while the 19+ group of
population will increase by
173 mn.
The increased population of the

older group clearly translates to
greater demand for employment
Source: Census, Registrar General of India, IMA analysis

Greater share of urban population
Rapid urbanisation
9% The cities and towns will add 117 mn to their

2011 2021
909 existing population in contrast to 75 mn in the
834
31% villages resulting in an increase in share of
494
urban population from 31% in 2011 to
377 35% in 2021.
Rural population Urban population
Source: Census, World Bank, IMA analysis

Employment situation in 2020-21
Between 2011-12 and 2020-21, while nearly

Projected occupation profiles in 2020-21 33 mn additional people are projected to
100% gain employment, 6 mn are likely to be
90% Studying, Studying,
338.5
added to the pool of people seeking
80% 409.4
employment but unable to find one – taking
70%
60%
OLF, 406.2 OLF, 470.7 the number to 16 mn.
50% Unemployed, Unemployed,
40% 10.6 16.0 The number of people who choose to stay
30% out of the workforce will also increase by
Employed, Employed,
20%
475.5
70 mn.
508.1
10%
0% The demand for employment can intensify
2011-12 2020-21
if a section of the ‘out of labour force’
Employed Unemployed OLF Studying
choose to seek employment.

A quarter of the employed population will still be illiterate…
18 mn graduates and postgraduates will enter the workforce between 2011 and 2021, but their share in
the workforce will still be less than those who are educated up to primary and higher secondary levels
Education profile of employed Education profile of employed

population, 2011-12 population, 2020-21
Graduate, Postgraduate, Graduate, Postgraduate,
Diploma/ 30.4, 6% 11.4, 2% 19.5, 4%
Certificate, Diploma/ 40.8, 8%
6.7, 2% Certificate,
9.0, 2%
Illiterate, Illiterate,
145.9, 31% 128.9, 25%
Up to HS,
165.8, 35% Up to HS, Up to
Up to 193.2, 38% Primary,
Primary, 116.8, 23%
115.3, 24%

Key states for employed talent pool
About 31 mn out of 41 mn employed graduates More than 15 mn out of about 20 mn employed

will be accounted for by ten states postgraduates will be accounted for by ten states

The burden of unemployment on graduates and
postgraduates will increase
With the share of higher educated among the population increasing fast, the graduates and
postgraduates are likely to see an increase in their share among the unemployed population. The share
of illiterates and those with up to primary education, however, is also likely to increase.
Education profile of unemployed Education profile of unemployed

population, 2011-12 population, 2020-21
Postgraduate, Illiterate, Illiterate,
Up to Postgraduate,
0.9, 9% 0.7, 6% 1.3, 8% Up to
Primary, 1.8, 11%
1.3, 12% Primary,
2.3, 15%
Graduate,
2.5, 23% Graduate,
4.0, 25%
Up to HS, Up to HS,
Diploma/ 4.7, 44% Diploma/ 5.8, 36%
Certificate, Certificate,
0.6, 6% 0.8, 5%

More primary and higher secondary educated people are likely
to opt out of the workforce than graduates and postgraduates
While 16 mn additional graduates and postgraduates are projected to opt out of the workforce, the same
as those primary educated, the big addition to this category is likely to those with higher secondary
education – adding 32 mn to the category.
Education profile of ‘out of labour Education profile of ‘out of labour

force’ population, 2011-12 force’ population, 2020-21
Graduate, Postgraduate,
Postgraduate, Diploma/ 10.7, 2%
24.6, 5%
3.9, 1% Certificate,
3.1, 1%
Graduate, Illiterate,
13.8, 4% 230.5, 57%
Up to HS,
118.9, 25% Illiterate,
Diploma/ 227.9, 49%
Certificate, Up to HS,
1.4, 0% 86.6, 21% Up to
Up to
Primary,
Primary,
85.4, 18%
69.9, 17%

24 states to employ more than 1 mn people…
…up from 23 in 2011-12
In the ranking of
states by number of
people employed,
Rajasthan,
Chhattisgarh,
Jharkhand and
Himachal Pradesh
will register
improvements, while
Madhya Pradesh,
Kerala, Punjab
and Uttarakhand
will see a decline
For 2011-12 data, see appendix © IMA India, 2017 www.ima-india.com 104
Appendix: Data tables & methodology
Employment by states, 2015-16 (1)
Rural Urban Total
Male Female Total population
employment employment employment
Andhra Pradesh 18,321,699 5,467,389 14,687,171 9,013,011 23,789,088 39,452,512
Arunachal Pradesh 495,570 105,706 367,760 234,826 601,276 1,017,091
Assam 9,929,045 1,751,317 8,592,813 2,768,436 11,680,362 23,132,714
Bihar 29,752,267 3,649,627 26,991,213 5,743,225 33,401,894 69,294,589
Chhattisgarh 10,532,872 2,344,086 7,740,452 5,044,902 12,876,958 19,606,224
Delhi 104,939 5,523,211 4,739,902 765,974 5,628,149 13,850,415
Goa 179,650 366,992 428,187 130,750 546,642 1,222,913
Gujarat 13,353,421 9,280,658 18,359,033 4,211,760 22,634,079 47,392,304
Haryana 5,836,884 3,064,745 7,193,851 1,710,213 8,901,628 20,151,381
Himachal Pradesh 2,004,839 248,842 1,825,603 416,715 2,253,681 5,527,579
Jammu & Kashmir 2,279,617 1,121,741 3,060,004 356,542 3,401,358 9,228,341
Jharkhand 12,302,637 2,676,267 9,516,734 5,308,028 14,978,904 23,482,825
Karnataka 17,126,984 10,243,430 19,086,863 8,092,519 27,370,413 49,754,850
Kerala 5,469,776 7,244,138 9,076,110 3,550,937 12,713,914 28,280,269
Madhya Pradesh 17,792,147 6,199,343 19,347,491 4,353,935 23,991,491 54,175,639
Maharashtra 29,098,526 16,696,423 32,292,406 13,421,752 45,794,949 90,435,771
Manipur 1,014,970 365,846 829,037 553,358 1,380,815 2,275,456
Meghalaya 1,002,877 258,713 752,966 503,949 1,261,589 2,022,291
Mizoram 270,201 277,097 312,312 238,524 547,299 828,209
Nagaland 573,955 267,658 480,718 358,428 841,613 1,358,801
Employment by states, 2015-16 (2)
Rural Urban Total

Male Female Total population
employment employment employment
Odisha 13,937,837 2,546,047 12,421,746 3,759,481 16,483,884 32,410,148
Punjab 5,573,629 3,506,906 8,023,660 1,028,869 9,080,535 22,651,575
Rajasthan 21,160,241 5,329,830 18,808,935 7,444,856 26,490,071 50,318,356
Sikkim 214,041 95,457 199,911 108,615 309,499 515,302
Tamil Nadu 19,387,505 13,749,611 21,706,420 11,429,956 33,137,117 60,086,188
Telangana 10,308,267 5,510,352 9,947,893 5,788,279 15,818,620 28,525,819
Tripura 1,290,097 490,879 1,191,718 608,141 1,780,976 2,971,815
Uttar Pradesh 49,694,793 13,858,274 49,431,613 14,035,300 63,553,067 142,274,130
Uttarakhand 2,362,101 930,297 2,712,448 432,332 3,292,397 7,770,618
West Bengal 25,361,014 11,213,422 29,250,915 7,141,030 36,574,436 73,093,956
A & N Islands 100,766 64,277 132,826 34,659 165,042 306,582
Chandigarh 5,511 321,384 293,294 32,613 326,895 883,571
Dadra & Nagar
Haveli 60,756 80,468 128,530 19,434 141,224 319,338
Daman & Diu 16,601 131,664 171,513 13,016 148,264 293,546
Lakshadweep 2,109 18,385 17,515 4,360 20,495 59,063
Puducherry 178,187 363,684 386,386 153,986 541,871 1,075,269
All India 327,096,332 135,364,164 343,254,493 112,885,530 462,460,496 926,045,451

Occupation status in the states, 2011-12 (mn) (1)
Employed Unemployed Out of labour force Students
Uttar Pradesh 67.88 1.10 73.20 61.74

Maharashtra 50.48 0.67 35.14 30.81
Andhra Pardesh 42.45 0.86 24.46 22.64
West Bengal 37.36 1.26 33.77 22.81
Tamil Nadu 33.39 0.79 22.64 18.50
Madhya Pradesh 27.92 0.25 23.35 20.89
Bihar 27.72 0.99 40.71 32.19
Rajasthan 27.01 0.32 20.31 19.79
Gujarat 26.54 0.13 21.35 14.83
Karnataka 26.36 0.42 19.76 15.82
Odisha 17.76 0.43 14.75 10.21
Kerala 13.30 0.94 12.82 8.29
Chhattisgarh 12.02 0.17 5.91 7.87
Punjab 11.35 0.26 9.81 7.51
Jharkhand 10.60 0.29 10.51 8.80
Assam 10.19 0.50 10.73 8.47
Haryana 9.41 0.28 9.70 7.93
Delhi 4.90 0.20 4.85 4.58

Occupation status in the states, 2011-12 (mn) (2)
Employed Unemployed Out of labour force Students
Jammu & Kashmir 4.29 0.15 3.15 3.42

Uttarakhand 3.82 0.12 2.98 3.66
Himachal Pradesh 3.70 0.05 1.28 2.08
Tripura 1.48 0.22 1.09 1.02
Meghalaya 1.22 0.01 0.51 1.06
Manipur 0.95 0.04 0.69 0.87
Goa 0.54 0.03 0.58 0.36
Puducherry 0.48 0.01 0.49 0.38
Nagaland 0.46 0.10 0.27 0.42
Mizoram 0.43 0.01 0.24 0.32
Arunachal Pradesh 0.43 0.01 0.31 0.42
Chandigarh 0.40 0.03 0.37 0.33
Sikkim 0.31 0.00 0.10 0.18
Andaman & Nicober 0.16 0.01 0.12 0.09
Dadra & Nagar
Haveli 0.12 0.00 0.12 0.11
Daman & Diu 0.08 0.00 0.08 0.04
Lakshadweep 0.02 0.00 0.02 0.01
Higher education in cities, 2011 (1)
Engineering & technology
Non-technical graduate Non-technical postgraduate Medicine
degree
Greater Mumbai 1,214,426 302,902 185,157 58,069
Bangalore 792,509 265,476 453,651 48,733
Hyderabad 602,310 231,117 263,743 45,619
Delhi 1,411,102 510,355 200,447 43,916
Chennai 433,977 200,901 203,649 27,711
Ahmadabad 506,228 132,344 83,005 25,022
Pune 329,936 136,682 149,823 22,497
Kolkata 617,947 123,071 57,671 13,359
Nagpur 204,114 95,052 51,442 12,998
Jaipur 287,387 171,611 44,659 12,915
Lucknow 341,547 180,027 51,151 12,706
Surat 189,869 40,781 29,492 10,237
Vadodara 169,535 50,267 42,635 8,662
Thiruvananthapuram 78,372 35,291 23,994 8,269
Nashik 116,138 42,882 24,962 8,151
Srinagar 84,013 24,007 13,020 7,987
Bhopal 138,791 91,124 40,642 7,681
Pimpri Chinchwad 122,979 47,045 64,256 7,602
Indore 173,016 96,351 33,196 7,512
Source: Census
Thane 154,662 37,931 33,514 7,401
Source: Census © IMA India, 2017 www.ima-india.com 110
degree
Visakhapatnam 137,607 50,399 49,675 7,236
Patna 211,014 50,854 33,818 6,838
Aurangabad 83,039 36,401 21,616 6,706
Chandigarh 100,960 53,976 20,990 6,357
Navi Mumbai 108,512 36,626 36,297 6,048
Coimbatore 79,055 40,603 38,400 5,869
Kanpur 271,304 138,885 33,940 5,710
Kalyan Dombivali 144,896 32,209 23,001 5,434
Mysore 80,237 25,934 32,049 5,408
Ghaziabad 168,475 100,559 50,092 5,306
Gurgaon 107,379 74,601 39,568 5,153
Ludhiana 135,817 44,959 16,779 5,126
Warangal 54,566 25,808 19,755 4,854
Guwahati 132,499 28,846 15,496 4,733
Jammu 60,214 28,402 19,536 4,688
Cuttack 65,380 25,031 12,861 4,590
Kochi 67,494 25,164 15,005 4,519
Mangalore 48,892 10,551 11,960 4,511
Bhubaneswar 104,997 52,520 33,794 4,491
Vijayawada 77,804 25,561 23,868 4,483
degree
Guntur 49,754 18,737 17,377 4,389
Amritsar 86,039 29,619 13,418 4,388
Rajkot 98,361 25,922 14,555 4,332
Gwalior 89,724 52,984 19,296 4,261
Faridabad 123,564 53,158 32,612 4,107
Raipur 77,049 48,513 15,696 4,023
Varanasi 101,540 50,072 12,745 4,014
Allahabad 136,668 67,534 20,116 3,933
Hubli-Dharwad 69,097 17,578 16,536 3,752
Madurai 63,485 32,451 25,844 3,706
Jabalpur 86,576 56,761 19,534 3,618
Gulbarga 33,367 9,607 12,060 3,564
Kozhikode 37,485 11,380 5,732 3,556
Jalandhar 77,117 29,401 12,656 3,521
Ranchi 137,764 38,999 16,702 3,416
Kolhapur 59,147 15,301 10,698 3,416
Patiala 42,710 24,367 11,116 3,332
Amravati 47,654 21,383 11,583 3,297
Solapur 51,474 16,184 9,530 3,172
Tiruchirappalli 56,445 32,187 27,466 3,168
degree
Salem 41,506 23,393 21,736 3,158
Kurnool 31,128 11,370 11,146 3,079
Agra 104,950 56,996 16,098 3,067
Jodhpur 75,944 43,417 12,925 3,045
Noida 66,043 42,782 28,017 3,034
Meerut 89,495 57,674 19,231 3,015
Belgaum 40,459 7,762 9,651 2,986
Kota 62,379 43,669 13,034 2,979
Nanded Waghala 29,296 11,999 7,240 2,930
Ozhukarai 20,825 13,984 10,837 2,855
Sangli-Miraj Kupwad 37,581 9,456 7,403 2,802
Thrissur 31,278 10,747 6,140 2,791
Ambattur 44,687 22,520 25,314 2,757
Nellore 35,457 10,984 14,888 2,745
Aligarh 48,652 34,982 10,450 2,691
Tirupati 27,418 12,273 10,856 2,676
Dehradun 69,632 46,600 14,073 2,671
Akola 27,604 10,267 4,824 2,446
Gorakhpur 71,692 37,218 9,489 2,416
Vasai-Virar 95,107 15,781 8,982 2,386
degree
Mira Bhayandar 87,471 17,399 8,620 2,343
Jalgaon 30,288 12,025 6,464 2,321
Udaipur 41,109 35,012 9,504 2,309
Gandhinagar 29,766 10,106 7,544 2,309
Ahmadnagar 28,718 10,991 5,552 2,289
Rohtak 30,283 20,797 8,610 2,281
Davanagere 22,647 5,571 6,602 2,237
S.A.S. Nagar 26,918 15,989 9,157 2,235
Bidhan Nagar 39,195 14,201 9,734 2,212
Kollam 22,508 8,531 4,550 2,201
Panchkula 30,401 18,876 8,903 2,158
Latur 19,696 9,381 6,040 2,156
Bijapur 21,493 4,619 5,031 2,080
Tirunelveli 27,137 15,086 12,511 2,079
Bhilai Nagar 39,603 26,737 11,730 1,978
NDMC 37,189 16,890 6,378 1,949
Bareilly 57,419 39,837 8,834 1,915
Brahmapur 25,831 13,023 8,372 1,913
Imphal 46,088 10,035 4,765 1,846
Jamnagar 34,355 8,862 5,137 1,834
Methodology
All calculations in this report are based on unit level (raw) data compiled by the National Sample
Survey Organisation (NSSO), Census data tables and reports published by the Labour Bureau,
Central Statistics Office of the Ministry of Statistics and Programme Implementation, and the
Ministry of Human Resource Development. All NSSO data used in this report have been
normalised with the Census data for standardisation. However, in view of the different sampling
methods and sizes used by the different organisations, there is unavoidable variation in the data
in a few slides, although not significant to influence the inferences drawn from the trend analysis.

Thank you
International Market Assessment India Private Limited

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Gurgaon 122002
Tel: +91 124 4591200 (Board)
Fax: +91 124 4591250
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© IMA India, 2017 www.ima-india.com 2

© IMA India, 2017 www.ima-india.com 3

© IMA India, 2017 www.ima-india.com 7

© IMA India, 2017 www.ima-india.com 11

© IMA India, 2017 www.ima-india.com 12

Nearly 72% of these establishments (~42 mn), however, are

Source: Census, NSSO, IMA analysis

Trend in number of unemployed MGNREGA employment and quantum of work

excluded from the overall estimates. 87.7

Source: Census 2011; 14+ years age group

in 2004-05. Their number and share in the

workforce, however, have declined significantly

1999-00 2004-05 2011-12 2013-14 2015-16

All workers including part-time workers Excluding part-time workers

Composition of self-employed Composition of self-employed

The rapid increase in the number of

Source: NSSO, IMA analysis

Public Sector: 30.5 mn

Private sector: 19.1 mn

© IMA India, 2017 www.ima-india.com 25

The low share of

© IMA India, 2017 www.ima-india.com 26

Govt./Public sector 6.5

Source: NSSO, IMA analysis

*Proprietary and partnership firms Source: NSSO, IMA analysis

© IMA India, 2017 www.ima-india.com 29

16.6 15.3 20.00

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 31

PTE, Jharkhand: KEY: g rowth between 2004-05

UP -5,560.6 -11% MP 21.6 1% Karnataka -2,794.9 -26%

Increase in employment was

Source: NSSO, Labour Bureau, IMA analysis

Highest net increase in urban population – Kerala (13.8

Highest net increase in rural population – Bihar (14.7

Trend in migration (in mn)

Source: Census, IMA analysis

Source: Census, IMA analysis

© IMA India, 2017 www.ima-india.com 38

© IMA India, 2017 www.ima-india.com 39

Source: NSSO, Labour Bureau, IMA analysis

Source: NSSO, IMA analysis,

© IMA India, 2017 www.ima-india.com 42

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 43

Source: Annual Survey of Industries, various years.

Wholesale & retail trade 33%, 92% employed in the

77% employed in the 22% employed in the

26% employed in the 67% employed in the

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 45

Employment in the agriculture

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 47

The top 10 states

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 48

The top 10 states

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 49

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 50

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 51

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 52

Source: NSSO, IMA analysis © IMA India, 2017 www.ima-india.com 53

Gujarat 1,510.98 West Bengal 41.61 Rajasthan 179.35