The NSO has released the Periodic Labour Force Survey (PLFS) Annual Report for 2025, marking the first comprehensive transition to a calendar-year reporting cycle (January–December). The report reveals a stable labor market with the Labour Force Participation Rate (LFPR) holding steady at 59.3% and the Worker Population Ratio (WPR) at 57.4% for persons aged 15 and above.
A significant trend identified in the Usual Status data is the ongoing formalisation of the workforce, with the share of workers in regular wage/salaried employment rising to 23.6% in 2025, up from 22.4% in 2024. Conversely, the share of self-employed persons continued its gradual decline, falling to 56.2%. The absolute number of workers in India (aged 15+) is estimated at 61.6 crore, comprising 41.6 crore males and 20.0 crore females.
Sectoral Shifts and Demographic Trends
Industrial Transition: The manufacturing sector witnessed an increase in worker participation to 12.1%, while the agriculture sector saw a decline to 43.0% from 44.8% in 2024.
Unemployment Improvements: The overall Unemployment Rate (UR) for youth (15-29 years) fell to 9.9%from 10.3%; urban female unemployment specifically declined to 6.4%.
Educational Attainment: 67.8% of the workforce has at least a secondary education. Among those with technical training, workforce participation is robust at 83.3% for males and 51.4% for females.
Income Growth: Nominal wages for females grew more strongly than males across categories, notably rising by 8.8% in self-employment compared to 6.0% for males.
What is "Usual Status (ps+ss)"? Usual Status is an activity status determination based on a reference period of 365 days preceding the date of the survey. It combines the Principal Status (ps)—the activity on which a person spent a major part of the year—with the Subsidiary Status (ss), which accounts for persons who performed secondary economic activities for at least 30 days. This metric establishes a formal baseline for measuring long-term employment trends, providing a more stable view of the labor market than short-term fluctuations. It functions as a strategic maneuver to capture chronic unemployment and stable worker engagement, particularly in rural economies where seasonal labor is prevalent.
Policy Relevance: Transitioning to a Data-Driven Labor Framework
Standardizes High-Frequency Labor Tracking: The revamped PLFS methodology, featuring a 2.65 times larger sample size (covering 2.72 lakh households), establishes a formal baseline for monthly and quarterly rural-urban estimates.
Systemically Addresses the Formalization Gap: The growth in salaried employment to 23.6% signals a structural shift where more workers are moving into the organized sector, potentially expanding the social security net.
Fortifies Targeted Skill Development: Data showing 25.0% of youth (15-29) are not in employment, education, or training (NEET) provides the necessary technical infrastructure for the Ministry of Skill Development to refine vocational quotas.
Catalyzes Gender-Responsive Economic Policy: Stronger nominal wage growth for women (up to 8.8%) provides a strategic safeguard for narrowing the gender pay gap, though the LFPR gap (79.1% male vs 40.0% female) remains a structural hurdle.
Anchors Urban Planning via Migrant Data: The rise in urban WPR to nearly 50.0% underscores the need for resilient urban infrastructure to absorb the increasing influx of regular salaried workers.
Follow the Full Data Here: Periodic Labour Force Survey Annual Report 2025 - 27 March 2026
