New Delhi: The recent Economic Survey highlighted some exciting changes in India’s labor markets. Union Finance Minister Nirmala Sitharaman presented findings showing that digitalization, green energy, and gig work are driving major shifts.
The survey emphasizes that new Labour Codes could significantly boost job creation and economic growth. The government has been working hard to lower unemployment and expand benefits for workers. They are shifting focus from merely creating jobs to improving job quality, aiming for a more inclusive workforce.
Key findings from the survey reveal that employment has been on the rise, thanks to structural reforms and a renewed emphasis on skill development. Changes like deregulation and the rollout of GST 2.0 have positively impacted employment across various sectors.
Interestingly, the Female Labour Force Participation Rate (FLFPR) has grown from 23.3% in 2017-18 to 41.7% in 2023-24, indicating a significant shift toward greater inclusion. Additionally, the unemployment rate has dropped from 5.6% to 3.2%, reflecting improved economic conditions.
Recent statistics show a steady labor market, with data indicating that in the first half of FY26, employment increased by about 8.7 lakh new jobs. The organized manufacturing sector, according to the Annual Survey of Industries, also reported a 6% year-on-year rise in employment.
One crucial element in this transformation is the e-Shram portal, which has registered over 31 crore unorganized workers as of January 2026. This database helps connect workers in various sectors, including construction and gig work, to social protections and support systems.
The four Labour Codes—covering wages, industrial relations, social security, and occupational safety—were designed to simplify rules and enhance protection for workers. They result from extensive discussions among government officials, trade unions, and the business community.
The National Career Service (NCS) portal has emerged as a vital tool for job seekers, offering services like free registration, job applications, and career counseling in multiple languages.
The gig workforce is also on the rise. From 77 lakh in FY21, it grew to 120 lakh by FY25, driven by increased smartphone usage and digital transactions. This sector now represents over 2% of India’s total workforce and is projected to contribute significantly to the economy in the coming years.
As the gig economy grows, it offers both opportunities and challenges. Experts warn that while it provides flexible employment, addressing job security and worker rights is crucial for sustainable growth. Additionally, many female workers are drawn to gig roles due to the dual pressure of caregiving and paid work, highlighting the need for flexible job options.
For more in-depth insights, consider exploring the full Economic Survey here.
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