Assam’s services sector employment share has dipped over the last decade, according to a recent Niti Aayog report. As of 2023-24, 30.1% of the state’s workforce, or 5.1 million workers, are employed in services. This marks a slight decline from 30.7% in 2011-12, yet it remains just above the national average of 29.7%. The findings highlight shifting employment patterns in the region.
Despite the drop, Assam’s services sector still outperforms the national figure marginally. The report titled ‘India’s Services Sector: Insights from Employment Trends and State level Dynamics’ provides a detailed analysis. It underscores how regional economies are evolving differently across India.
Chandigarh leads with 77.9% of its workforce in services, followed by Delhi at 71.0%. Goa and Puducherry also show high shares of 59.1% and 59.6%, respectively. These areas have maintained strong services employment since 2011-12, driven by urban development and sectors like tourism and public administration.
In the Northeast, Mizoram and Nagaland report services shares of 49.6% and 43.1%, well above the average. Sikkim follows closely at 43.8%, while Arunachal Pradesh is lower at 26.2%. This regional disparity reflects varied economic structures and urbanisation levels.
Agriculture remains the largest employer in Assam, engaging 47.2% of the workforce. Construction and manufacturing follow with 13% and 9.3%, respectively. The dominance of agriculture highlights the state’s reliance on traditional sectors.
Rural areas in Assam see only 25.8% of workers in services, compared to 71% in urban zones. This urban-rural divide points to unequal access to service-based jobs. Female participation in the services sector is particularly low at just 15.1%.
Within Assam’s services sector, wholesale and retail trade account for the highest employment share at 41.7%. Transportation and storage come next with 18.8%, followed by education at 13% and accommodation at 6.4%. These subsectors form the backbone of local services employment.
The report suggests promoting cultural events and creative hubs to boost jobs. Developing arts, crafts, and media could enhance local culture and generate roles in event management and hospitality. Such initiatives might revitalise the services sector in Assam.
Leveraging tourism and eco-based services in areas like Kaziranga and Majuli is also recommended. This could provide employment opportunities for rural youth. Additionally, expediting a multi-modal logistic park would improve regional connectivity and cut logistics costs.
Services employment across India varies widely by state, influenced by economic structure and urbanisation. Uttar Pradesh has the largest number of service workers at 22.1 million, despite a low share of 22.7%. Maharashtra follows with 21.5 million workers and a 36.2% share, supported by its urban base.
West Bengal, Tamil Nadu, and Gujarat also contribute significantly to services employment. West Bengal has 15.7 million workers at 32.5%, Tamil Nadu 13.5 million at 37.9%, and Gujarat 10.5 million at 30.2%. These states showcase diverse economic strengths.
Kerala and Andhra Pradesh show strong reliance on services, with shares of 48.5% and 31.8%, respectively. Kerala employs 7.5 million workers, while Andhra Pradesh has 7.8 million. Healthcare, education, and trade drive their services sectors.
The Niti Aayog report emphasizes the need for targeted strategies to enhance services employment. Focusing on regional strengths and infrastructure can help bridge gaps. Assam’s slight decline calls for innovative approaches to sustain growth.
Overall, the services sector remains a critical component of India’s economy. State-level insights reveal opportunities for tailored policies. Encouraging diversification could lead to more balanced employment trends nationwide.