An Economic analysis of the growth and pattern of employment in Karnataka was done. Employment in Karnataka was largely unorganized, rural and non- industrial. The employment growth has been on decline inspite of economic liberalization which has not altered the employment patterns in many sectors including manufacturing sector. Redistribution of income in favour of the low-income groups, public investment; and incentives for private investment are some of the pertinent policy measures. The major objective of any employment programmes is to reduce poverty and thus needs to be designed and implemented in such a way that they ultimately increase productive assets – private or social, in order to achieve lasting impact on the local economy and society as well as has a multiplier effect on economy. Therefore. analysis will be useful for researchers, planners and policy makers who are working on employment, income redistribution and poverty reduction.