PLFS Annual Report 2025: Labour Trends, Unemployment Rate & Workforce Shift in India

India released the Periodic Labour Force Survey (PLFS) Annual Report 2025, marking a shift to a calendar-year methodology with improved sampling and labour market estimation.

Key Highlights of the Survey

• Labour Force Participation Rate (LFPR): LFPR for persons aged 15+ remained stable at 59.3% in 2025, with male participation at 79.1% and female at 40.0%.
  • Rural female participation sustained earlier gains, while urban participation levels remained largely unchanged.

• Worker Population Ratio (WPR): WPR stood at 57.4%, showing stability compared to 2024.
  • Male WPR was 76.6%, while female WPR was 38.8%, reflecting persistent gender disparity.
• Unemployment Rate (UR): Overall UR declined to 3.1%, indicating improved labour absorption.
  • Rural UR (2.4%) remained lower than urban UR (4.8%), with notable reduction in youth unemployment.
• Employment Structure: Share of self-employed declined from 58.2% (2023) to 56.2% (2025).
  • Regular wage/salaried employment increased to 23.6%, indicating gradual formalization.
  • Casual labour remained stable at around one-fifth of total employment.
• Sectoral Trends: Agriculture remained the largest employer but its share declined to 43%.
  • Manufacturing and services sectors recorded increased employment share, indicating structural shift.
• Gender Dimensions: Female workforce participation improved moderately, but disparities persist in wages and working hours.
  • Women reported domestic responsibilities as the major reason for not participating in the labour force.
• Education & Skills: Average years of schooling reached 10 years (15+ age group).
  • Only 4.2% of persons (15–59 years) received formal vocational training, highlighting skill gaps.

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About Periodic Labour Force Survey (PLFS) Annual Report

• The National Statistics Office (NSO) conducts PLFS to generate high-frequency labour market data for employment and unemployment analysis.
• Published by : Ministry of Statistics and Programme Implementation (MoSPI).
• Period Covered: The 2025 report covers January–December 2025, marking a shift from the earlier July–June agricultural cycle.
• Methodology Changes: Revamped sampling design with increased sample size (~2.7 lakh households) and rotational panel system for higher accuracy.
• Key Indicators 
  • Labour Force Participation Rate (LFPR): Percentage of persons aged 15 years and above who are part of the labour force.
    • Labour force includes:
      • Persons working (employed)
      • Persons seeking or available for work (unemployed)
    • It indicates the extent of active participation of the population in economic activities.
  • Worker Population Ratio (WPR): Percentage of persons aged 15 years and above who are employed in the population.
    • It includes all individuals engaged in any economic activity (paid/unpaid, formal/informal).
    • Reflects the actual employment level in the population.
  • Unemployment Rate (UR): Percentage of persons aged 15 years and above who are unemployed among the labour force.
    • Unemployed persons are those who are not working but seeking/available for work.
    • It measures the severity of joblessness within the active labour force (not total population). 
  • Activity Status Measures
    • Usual Status (PS+SS): Based on last 365 days (principal + subsidiary activities).
    • Current Weekly Status (CWS): Based on the last 7 days, capturing short-term employment dynamics.
• Factors Influencing Labour Trends: Education levels, gender roles, sectoral shifts, and urban–rural differences significantly influence employment patterns.

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Conclusion

PLFS 2025 reflects stable participation, declining unemployment, and gradual structural transformation, but highlights gender gaps and skill deficits as key policy challenges.

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