Subject and purpose of work: This paper examines employment and income trends in Punjab, with a focus on youth, and level of education. It aims to identify structural labour market gaps and recommend targeted policies for inclusive, sustainable employment. Materials and methods: This study is based on unit-level data from the Periodic Labour Force Survey (PLFS) for the years 2017–18 to 2023–24. Employment indicators and average wage estimates were calculated using Stata 17 statistical software to ensure precise, consistent, and policy-relevant analysis. Results: The analysis reveals persistent youth unemployment, low wage returns despite rising education, and a labour market dominated by informal and low-quality jobs in Punjab. While some employment indicators have improved post-pandemic, structural gaps remain in job creation and income mobility. Conclusions: Punjab’s labour market shows modest recovery but remains constrained by high youth unemployment, low wage returns, and structural informality, demanding urgent policy intervention.