Context:
The latest Periodic Labour Force Survey (PLFS) 2025 shows that India’s worker population ratio and labour force participation rate have improved since 2022, with a notable rise in women’s participation, especially in rural areas. However, concerns continue regarding urban female participation, educated unemployment, and high youth unemployment.
- The Periodic Labour Force Survey (PLFS) is conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) to measure employment and unemployment trends in India.
- PLFS estimates important indicators such as Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).
- Labour Force includes persons who are employed or actively seeking employment.
- Labour Force Participation Rate (LFPR) represents the percentage of population participating in economic activity through work or job search. India’s overall LFPR stood at 44.9% in 2025 compared to 44.7% in 2024.
- Worker Population Ratio (WPR) measures the proportion of employed persons in the total population. India’s overall WPR increased from 39.7% in 2022 to 43.5% in 2025, while female WPR rose from 24.6% to 29.8% during the same period.
- Unemployment Rate (UR) refers to the percentage of unemployed persons within the labour force. India’s overall unemployment rate declined from 3.6% in 2022 to 3.1% in 2025.
- Rural female labour force participation reached 34.6%, significantly higher than urban female participation at 22.2%, mainly due to agricultural and household-based work.
- Male LFPR remains substantially higher, with rural male participation at 58.8% and urban male participation at 59.7%.
- Youth unemployment (15–29 years) remains a major concern. Urban young women recorded the highest unemployment rate at 18.9%, while urban young men recorded 11.8%.
- Educated unemployment remains relatively high, especially in urban areas, where unemployment among educated persons reached 7.2% compared to the all-India average of 3.1%.
- Employment categories in PLFS include self-employment, regular wage/salaried employment, and casual labour. About 70.7% of rural working women are self-employed, whereas 50.9% of urban working women are engaged in regular salaried employment.
- High self-employment in rural India often reflects subsistence agriculture and informal work rather than productive formal-sector employment.
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