Telangana Workforce Crisis Over 53% of Population Classified as Non-Workers
Despite Telangana’s strong economic growth, a startling 53% of its population is classified as ‘non-workers,’ meaning they are not engaged in any income-generating activity. The Telangana Statistical Abstract (Atlas) 2024 report highlights a major workforce participation crisis in the state, with only 47% of residents actively contributing to the economy. While the state has seen rapid urbanisation and high Gross State Domestic Product (GSDP), this data underscores the glaring gap between economic progress and employment opportunities. Hyderabad, the economic nerve centre of Telangana, presents an even starker picture, with 64% of its population classified as non-workers. In contrast, rural districts such as Jogulamba Gadwal and Mulugu report a higher percentage of main workers, indicating a deep urban-rural employment divide.
This trend raises concerns about job creation and skill development, particularly in a state known for its booming IT and industrial sectors. Experts attribute this imbalance to multiple factors, including the growing emphasis on degrees over vocational skills and the lack of adequate employment opportunities. “The education system has prioritised degrees rather than equipping students with employable skills. Additionally, a mismatch between available jobs and workforce qualifications has left many without work. Without a comprehensive strategy to improve job accessibility, the situation could worsen,” said Krishna Reddy Chittedi, assistant professor at the School of Economics, University of Hyderabad. The report identifies 1.37 crore people as ‘main workers’ (engaged in economic activity for over 183 days a year), 1.86 crore as ‘non-workers,’ and 26 lakh as ‘marginal workers’ (employed for less than 183 days annually), reflecting a concerning employment gap.
From a sustainability perspective, the high percentage of non-workers puts additional pressure on the state’s social and economic infrastructure. With fewer individuals contributing to economic productivity, there is a greater dependence on a smaller working population, leading to financial strain on government welfare schemes and urban resources. Comparisons with employment trends in states like Tamil Nadu and Maharashtra suggest that skill-based training and labour-intensive industries play a crucial role in improving workforce participation. Telangana, despite its advancements, must bridge the gap between education and employability to prevent a long-term economic imbalance. Sustainable employment strategies such as skill development programmes, startup incubators, and incentives for women’s workforce participation could be key to reversing this trend.
From an urban development standpoint, the lack of employment in Hyderabad, despite being a major business hub, points to a deeper issue in job distribution. Unlike Bengaluru, where a strong gig economy and startup culture have absorbed a significant portion of the workforce, Hyderabad appears to lack diversified employment avenues beyond IT and government jobs. Policymakers must focus on expanding sectors such as manufacturing, tourism, and green energy to create more opportunities. The findings of the Telangana Statistical Abstract 2024 serve as a wake-up call for the state government, urging an urgent reassessment of job creation policies. If employment gaps persist, the long-term sustainability of Telangana’s economic growth could be at risk, potentially widening socio-economic inequalities and stalling progress in the coming years.
