Since the 1993-94, India has witnessed an inconsistent trend in employment elasticity (EE). The paper investigates the factors that led to the revival EE in early 2000s. Among all, the agriculture and allied activities sector recorded the steepest rise (more than unity); owing to various micro development programs. Likewise, mining and quarrying; manufacturing; electricity; gas and water supply; construction; and other services also recorded the inconsistent behavior in EE. A comparative analysis of organized and unorganized sectors shows that in the former (organized manufacturing sector), EE increased consistently, whereas in the latter EE remained at low level. For instance, EE among OAMEs is recorded to be -4.0. It is the same pattern recorded in unorganized services sector. The focus of the paper is to investigate the factors that led to this pattern of EE.