The emergence of services as the prominent income generating sector in the Indian economy has generated considerable debate, especially in the last two decades. While there is optimism regarding this services-led growth, the disproportionate relationship between income and employment in the sector is a matter of concern. This anomaly presents a critical challenge to the economy, as service has been identified as a potential sector for more employment generation. Relying on the National Sample Survey (NSS) quinquennial Employment and Unemployment Surveys(1983, 1987–88, 1993–94, 1999–2000 and 2004–05) this paper analyses the structure of services employment at the disaggregate level. By examining the trends and pattern of services employment, its nature and remuneration, the paper explores the claim of whether major share of employment in Indian services result from proliferation of low paying jobs, pointing towards unemployed entering into services.