Syllabus: GS-III: Employment 

Why in the news?

Recent reports by NITI Aayog on India’s services sector have revealed that while the national share of services employment has risen, the state of Assam shows a slight decline — highlighting structural issues in job growth, rural-urban divide and sectoral transition.

What does the data show?

• As of 2023-24, 30.1 percent of Assam’s workforce (about 5.1 million workers) was employed in the services sector, down from 30.7 percent in 2011-12. 
  • Despite this slight dip, the figure remains marginally above the national average of 29.7 percent. 
• In rural Assam, services employment stands at only 25.8 percent, while in urban areas it is 71 percent, indicating a wide rural–urban gap. 
• Gender disparity is stark: only 15.1 percent of the female workforce in Assam is employed in the services sector. 
• Within services, the largest employment shares are in wholesale & retail trade (41.7 percent), followed by transport & storage (18.8 percent), education (13 percent), and accommodation (6.4 percent).

Why this matters

• The services sector in India is increasingly the engine of growth and jobs — contributing nearly 55 % to the national GVA and about 30 % to employment.
• Assam’s stagnation or slight decline in services employment signals limited structural transformation, meaning fewer transitions from agriculture or construction to higher value-added services.
• A strong services sector contributes to better wages, urbanisation, skill development, and innovation — hence lag in services employment can slow down the state’s economic and human development.
• The rural-urban and gender divide in services jobs point to inequities in access to opportunity, skills, mobility and quality of employment — all key concerns under inclusive growth frameworks.

Key concepts explained

• Services sector: Economic activities that provide intangible goods or services, e.g., trade, transport, education, hospitality, IT-enabled services.
• Gross Value Added (GVA): A measure of the value of goods and services produced in an area, industry or sector of an economy.
• Sectoral employment share: The percentage of total workforce employed in a particular sector (agriculture, industry, services).
• Structural transformation: The process by which the workforce moves from low-productivity sectors (agriculture) to high-productivity sectors (industry & services).
• Rural-urban divide: Disparity in employment, income, access to services and infrastructure between rural and urban areas.

Suggestions & way forward

• Tailor an Assam services-strategy leveraging local strengths: culture, eco-tourism (e.g., Kaziranga and Majuli), handloom-crafts, logistics, and agrarian-services linkages.
• Expand skills and digital training for rural youth and women to access services jobs beyond urban centres.
• Strengthen infrastructure (digital, transport, connectivity) and develop second-tier towns as service hubs.
• Improve formalisation and job quality in services, especially for MSMEs, gig-workers and informal segments — recommended by NITI Aayog’s roadmap.

Exam Hook: Key Take-aways

• In Assam, services employment has marginally declined to 30.1 percent of workforce in 2023-24 — below pace of national services-led transition.
• Major structural challenge: Rural services employment just 25.8 percent, while urban is 71 percent.
• Key internal policy route: Build diver­sified services economy (tourism, crafts, logistics), focus on rural women’s access, formalise gig/SME services jobs.

Short Mains Question:
“Analyse the implications of stagnating services employment in Assam’s economy. What policy measures should the State adopt to boost services-sector growth and inclusive job creation?”

One-line wrap:
Assam’s service-sector employment challenge is a wake-up call — transforming from rural agrarian to inclusive services economy is vital for the State’s growth story.

https://epaper.assamtribune.com/full-page-pdf/epaper/pdf/2025/11/01/the-assam-tribune/7242