Periodic Labour Force Survey (PLFS) Annual Report 2025, Key Highlights

The Periodic Labour Force Survey (PLFS) Annual Report 2025 provides a comprehensive and data-driven picture of India’s labour market, highlighting trends in employment, unemployment, workforce participation, sectoral shifts, and wage patterns during the period January-December 2025.

About Periodic Labour Force Survey (PLFS)

Periodic Labour Force Survey (PLFS), launched in 2017 by the National Statistical Office (NSO), is India’s main source of data on employment, unemployment, and wages. It was introduced to provide more frequent and reliable labour market information compared to the earlier National Sample Survey (NSS) rounds. 

The PLFS uses a scientifically designed sampling method covering both rural and urban areas, and collects data on individuals’ work status, type of employment, and earnings. 

PLFS measures employment using two main approaches:

• Usual Status: Based on a person’s activity over the past year. It is useful for long-term trends.
• Current Weekly Status (CWS): Based on activity in the last 7 days. It captures short-term and seasonal changes.

This dual approach reflects India’s complex labour market, where people often shift between work, unemployment, and inactivity.

From 2025, the survey has undergone key methodological changes:

• The survey cycle has shifted to a calendar year (January-December) from the earlier agricultural year (July-June).
• The sample size has significantly increased to improve representativeness.
• A rotational panel sampling design has been introduced to generate more frequent and dynamic estimates.

Key Highlights of Periodic Labour Force Survey (PLFS) Annual Report 2025

The Periodic Labour Force Survey (PLFS) Annual Report 2025 presents several important findings:

• Labour Force Participation Rate (LFPR): Remained stable at 59.3%, with male LFPR at 79.1% and female LFPR at 40.0%, reflecting gradual improvement in women’s participation.
• Worker Population Ratio (WPR): Estimated at 57.4%, showing consistency in employment levels across the country.
• Unemployment Rate (UR): Declined to 3.1%, with rural unemployment at 2.4% and urban unemployment at 4.8%, indicating better employment conditions in rural areas.
• Youth Unemployment: Reduced to 9.9% (age group 15-29 years), though still relatively high, highlighting challenges in youth employment.
• Sectoral Distribution: Agriculture remains the largest employer but its share declined, while manufacturing and services sectors witnessed increased participation.
• Rising Female Earnings: Women’s wages grew faster than men’s across categories, though a significant gender wage gap persists.
• Increase in Salaried Jobs: Share of regular wage employment rose from 22.4% in 2024 to 23.6% in 2025, indicating improvement in job quality.
• Education and Skills: Around 67.8% of people (15+) have at least secondary education, but only a small proportion received formal vocational training, indicating a skill gap.
• Employment Size: About 61.6 crore people were employed in 2025, reflecting the scale of India’s workforce.

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Key Labour Market Trends

Key Labour Market Trends show that India’s workforce is gradually shifting towards regular jobs, with more women participating, a move from agriculture to industry and services, and rising wages; however, challenges like unemployment, gender wage gaps, and youth underemployment continue to persist.

• Employment Structure Transformation: The share of self-employment has declined, while regular wage/salaried employment has increased to 23.6%. This indicates a slow movement towards more formal and stable jobs, although a large proportion of the workforce still remains in informal or vulnerable employment.
• Gender Dimensions of Employment: Female participation in the labour force has improved, with the Labour Force Participation Rate reaching 40%, but it still lags significantly behind male participation (79.1%). Women’s wages have grown faster than men’s in recent years; however, a substantial gender wage gap persists, with women earning only around 76% of male wages in salaried jobs and even less in self-employment. Social factors such as household responsibilities and care work continue to limit women’s workforce participation.
• Rural-Urban Employment Divide: Rural areas exhibit lower unemployment rates due to the absorptive capacity of agriculture and informal sectors, while urban areas have higher unemployment but offer relatively better quality and higher-paying jobs. The Worker Population Ratio remains stronger in rural areas, whereas urban employment is more sensitive to economic cycles and structural changes.
• Sectoral Shift in Employment: There is a noticeable decline in the share of employment in agriculture (from 44.8% to 43.0%), accompanied by an increase in manufacturing and services. This reflects a structural transformation of the Indian economy, where labour is gradually moving from low-productivity agriculture to higher-productivity sectors, although the pace of this transition remains moderate.
• Education and Employment Linkages: The average years of schooling have increased to around 10 years, and higher education levels are associated with greater workforce participation. However, educated unemployment continues to be a concern, indicating a mismatch between the education system and labour market requirements, particularly in terms of skills and employability.
• Youth Employment Challenges: While youth unemployment (15-29 years) has declined to 9.9%, it remains significantly higher than the overall unemployment rate. A considerable proportion of youth fall under the category of Not in Employment, Education or Training (NEET), reflecting underutilisation of India’s demographic dividend and the need for targeted employment and skill development policies.
• Wage Trends and Inequality: Wages have increased across categories, with female wages growing at a faster rate than male wages. However, gender-based wage inequality persists across all forms of employment – salaried, self-employed, and casual labour.

Challenges Highlighted in PLFS Annual Report 2025

Despite positive trends, the Periodic Labour Force Survey (PLFS) Annual Report 2025 highlights several structural challenges:

• Gender Wage Gap: Women earn significantly less than men across all categories of employment, reflecting deep-rooted inequalities.
• Low Female Labour Participation: Social norms, unpaid care work, and lack of opportunities continue to restrict women’s participation in the workforce.
• Youth Employment Concerns: High youth unemployment indicates a mismatch between education and industry requirements.
• Dominance of Informal Sector: A large proportion of workers still lack formal contracts, job security, and social protection benefits.
• Skill Deficit: Limited access to vocational and technical training reduces employability and productivity.
• Regional Disparities: Employment opportunities vary significantly across states and regions, leading to uneven development.

Significance of PLFS Annual Report 2025

The Periodic Labour Force Survey (PLFS) Annual Report 2025 is highly significant in multiple ways:

• Policy Formulation: Provides a strong empirical basis for designing employment and labour policies.
• Economic Planning: Helps track structural transformation and sectoral shifts in the economy.
• Inclusive Development: Highlights gaps in gender, youth, and regional employment, enabling targeted interventions.
• Skill Development Strategy: Identifies the need for aligning education with labour market demands.
• Monitoring Progress: Serves as a benchmark to evaluate government initiatives like skill development and employment schemes.

Way Forward

To build on the findings of the Periodic Labour Force Survey (PLFS) Annual Report 2025, a multi-pronged approach is needed:

• Strengthen Skill Ecosystem: Expand vocational and technical training to bridge the skill gap and improve employability.
• Enhance Female Workforce Participation: Provide supportive measures such as childcare facilities, safe workplaces, and flexible employment opportunities.
• Promote Labour-Intensive Manufacturing: Focus on sectors like textiles, food processing, and MSMEs to generate large-scale employment.
• Encourage Formalisation: Expand social security coverage and incentivise formal job creation.
• Improve Job Quality: Focus not just on employment quantity but also on wages, job security, and working conditions.
• Address Regional Imbalances: Promote balanced regional development through targeted investments and infrastructure.