India’s post-liberalization growth has been led by the service sector, now the largest contributor to the gross domestic product. However, its employment potential remains unevenly realized, especially for women who are concentrated in informal, low-paying rural jobs. This study examines the gendered patterns of sectoral employment from 2017–2018 to 2022–2023, using National Sample Survey Office (NSSO), Periodic Labour Force Survey (PLFS) and International Labour Organization data. Employing ISIC Rev. 4 for classification, it applies descriptive statistics and three indices, the Employment–Income Gap Index, the Labour Mobility Index and the Relative Absorption Index, to analyse sectoral shifts and gender disparities. Findings reveal persistent gender gaps, rural–urban divides and limited female mobility, with high employment–income gaps in agriculture and weak labour absorption in services. India’s service-led growth has not delivered inclusive employment outcomes. Addressing structural imbalances through gender-responsive skilling, safer workspaces and rural service-sector expansion is critical for enabling equitable labour transitions and harnessing the full potential of the service sector for inclusive development.
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