Services sector employs 30% Indians, lower than global average

According to the report, India faces a growing mismatch: education levels are rising faster than the quality of service jobs, underscoring the urgency of aligning skilling with sector needs

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India's services sector employs nearly 30 per cent of the country's workforce, which is still lower than the global average of 50 per cent, reflecting a slower structural transition, NITI Aayog said in a report Tuesday.

The Aayog, in a report titled ‘India's Services Sector: Insights from Employment Trends and State-Level Dynamics’, further said that services remain the mainstay of India's employment growth and post-pandemic recovery, but challenges persist.

“Services employment rose to 29.7 per cent in 2023-24 compared to 26.9 per cent in 2011-12 with 40 million jobs created in the last six years,” the Aayog said.

“However, it still lags the global average of 50 per cent, reflecting a slower structural transition,” it said, suggesting the need for structural reforms, fast-tracking social protection, digitising informal worker registration and formalising care services to boost formal employment in the services sector.