The paper examines the growth and structure of employment in Uttaranchal, with a focus on the post-formation period of the state. It argues that despite high growth in gross state domestic product (GSDP) in the state, a large section of population particularly in its hill districts still has very low levels of income. It also examines various policy measures taken by the state government towards improving income levels and raises the issues that need to be tackled by policy planners, particularly in the next plan of the state.