PLFS 2025 Annual Report: Jobs Up, Wages Stagnant
Why in the news
After the Periodic Labour Force Survey was overhauled, its 2025 annual report showed calm headline unemployment but pointed to poor job quality and flat earnings.
Key facts
- Revamp: monthly estimates, more rural coverage, bigger samples.
- Low unemployment in India often reflects a compulsion to work rather than access to productive jobs.
- Over 56% of the workforce is self-employed, often in low-productivity family enterprise or farming; regular salaried jobs rose only slightly.
- Casual labour (about 20% of workers) is most vulnerable, with limited daily wage gains.
| Indicator (age 15+) | 2022 (approx.) | 2025 |
|---|---|---|
| Labour Force Participation Rate | 56% | 59% |
| Worker-Population Ratio | Not given | 57% |
| Unemployment rate (usual status) | Not given | About 3% |
Terms
- LFPR: share of population working or seeking work.
- WPR: share of total population that is employed.
- Usual status: long-run employment measure using a 365-day reference period.
Concerns
- Gender gap: female LFPR 40% against 80% for men; only about 1 in 4 urban women is in the labour force. Higher rural female participation may signal distress as families try to supplement falling income.
- Real wages: pay has risen in nominal terms, but after adjusting for inflation growth is weak or flat.
- Low unemployment misleads because most people lack a safety net and take any work to survive, even badly paid.
Way forward
- Shift focus from simply creating jobs to creating productive jobs with stable, living wages.
Exam angle
- Know definitions of LFPR, WPR and usual status.
- Numbers: 59%, 57%, about 3%, 56% self-employed, 40% vs 80% gender gap.
- Concept: nominal versus real earnings; disguised unemployment.