4 min readAug 31, 2026 05:03 PM IST First published on: Aug 31, 2026 at 05:03 PM ISTIndia enters its next employment decade with notable achievements. The government has expanded the foundations of work through infrastructure development, formalisation, financial inclusion, skilling and encouragement to entrepreneurship. The Reserve Bank of India’s KLEMS productivity database provisionally estimates that employment rose from 47.15 crore in 2014-15 to 64.33 crore in 2023-24. The question is how this base can now produce more formal jobs, higher productivity, better wages and career progression.NITI Aayog’s report, Reimagining Skilling for Viksit Bharat@2047, released on August 18, places the challenge within a blueprint for demand-led, industry-linked and outcome-oriented skilling. It estimates that 9 crore young Indians were neither in education, employment nor training, excluding those seeking jobs, and that about 88 per cent were engaged in domestic duties. It is inaccurate to describe all of them as unemployed. But it’s also true that millions of young women remain outside paid work because unpaid care, safety, mobility, social norms and limited local opportunities restrict choice.AdvertisementCare is also needed when monthly, weekly and annual labour data are discussed together. The monthly Periodic Labour Force Survey bulletin provides a current pulse, but its Current Weekly Status classifies activity over the preceding seven days; the annual survey’s usual status captures the durable yearly pattern. Monthly and weekly-status figures should track short-term movement, while annual usual-status figures assess structural progress. They are not interchangeable.The aspiration of 2 crore jobs a year also needs clarity. It cannot mean 2 crore salaried government posts annually. The provisional KLEMS series records 17.18 crore additional workers over nine years through 2023-24, averaging about 1.9 crore a year. That is meaningful expansion, but aggregate numbers cannot settle the debate. India should publish an employment dashboard covering formalisation, real wage growth, social security, hours worked, sectoral productivity and movement from low-income work into stable careers.Also Read | With Tukaram Mundhe’s crackdown, a question: Why celebrate civil servants for doing their jobs?This brings us to every family’s concern: Where is the opportunity after graduation? Educated unemployment among first-time entrants is real. Yet saying graduates form a large share of unemployed youth is not the same as saying most graduates are unemployed. Important building blocks are in place. More than 1.64 crore candidates have been trained or oriented under the Pradhan Mantri Kaushal Vikas Yojana, while over 56.08 lakh apprentices have been engaged since 2016.AdvertisementThe start-up sector offers evidence of progress. By April 2026, start-ups had reported more than 23 lakh direct jobs. India moved from four unicorns in 2014 to over 120 firms valued above $1 billion, with a combined valuation exceeding $350 billion. Around half of recognised start-ups emerge from Tier II and Tier III cities, and over 45 per cent had at least one woman director or partner by December 2025.Public employment remains important. Sanctioned vacancies should be filled transparently; examination integrity and timely results must be non-negotiable. But the government cannot be the sole employer for a country adding millions of workers. The next step is helping viable micro-enterprises scale, formalise and hire.Women will be the decisive measure of the next employment transformation. Female labour force participation in usual status rose from 23.3 per cent in 2017-18 to 41.7 per cent in 2023-24. Women hold 56 per cent of Jan Dhan accounts, receive about two-thirds of MUDRA loans and number over 10 crore in self-help groups. Tap water, clean cooking fuel and sanitation reduce drudgery, while housing ownership strengthens assets. This must be matched by affordable childcare, safe transport, working women’s hostels, flexible formal work, digital access and quality jobs closer to home.India’s employment record gives the government a credible platform for the next leap. A compact among government, industry and education can convert scale into quality.The writer is professor of Finance, XLRI and part-time member of the Economic Advisory Council to the Prime Minister. Views are personal