Shift Towards Regular Wage Employment

Self-employment:

• • 57.5% → 56.2% (decline)
• Regular wage/salaried:
  • 22.4% → 23.6% (increase)
  • Male: 25.4% → 26.5%
  • Female: 16.6% → 18.2%
• Casual labour: ~20% (stable)
• Shows shift towards formal employment

Manufacturing and service sectors witnessed enhanced worker participation

• Agriculture:
  • 44.8% → 43.0% (decline, still largest)
• Construction:
  • 12.3% → 12.0% (slight fall)
• Manufacturing:
  • 11.6% → 12.1% (increase)
• Services:
  • 12.2% → 13.1% (increase)
• Indicates structural shift from agriculture to industry & services

Rising Earnings with Gender Improvements

• Regular employment:
  • Male: ₹22,891 → ₹24,217 (+5.8%)
  • Female: ₹17,126 → ₹18,353 (+7.2%)
• Self-employment:
  • Male: ₹16,893 → ₹17,914 (+6.0%)
  • Female: ₹5,861 → ₹6,374 (+8.8%)
• Casual labour:
  • Male: Stable (~₹455)
  • Female: ₹299 → ₹315 (+5.4%)
• Female earnings growing faster, but still lower overall

Challenges Associated

1. Gender-based Reasons for Labour Force Exit

• There is a clear difference between men and women in reasons for remaining outside the labour force.
• Example: Around 69.8% of males stay out due to education, whereas 44.4% of females remain out due to childcare and domestic responsibilities.
• This reflects deep-rooted social and economic constraints on women’s participation.

2. Inequality in Working Hours

• A notable gap exists in the number of hours worked by men and women.
• Example: In urban self-employment, males work 17.5 hours more per week than females.
• This indicates that women are engaged more in unpaid domestic work, reducing their economic participation.

3. High NEET Population

• A significant share of youth is not engaged in productive activities.
• Example: About 25% of persons aged 15–29 are Not in Employment, Education or Training (NEET).
• This may lead to loss of demographic advantage.

4. Limited Vocational Training

• Skill development remains inadequate.
• Example: Only 4.2% of people (15–59 years) have received formal vocational/technical training.
• This shows a large skill gap in the workforce.

5. Issues in Data Comparability

• Changes in methodology affect comparison over time.
• Example: The 2025 survey uses a new sampling design and calendar-year format, making it difficult to directly compare with earlier reports.

Way Forward

1. Reducing Gender Gap

• Promote affordable childcare services and flexible working arrangements.
• Encourage women’s participation through supportive policies and workplace reforms.

2. Expanding Skill Development

• Strengthen initiatives like Skill India Mission.
• Increase vocational training coverage from 4.2% to higher levels to meet industrial needs.

3. Addressing Urban Youth Unemployment

• Promote start-ups and service sector growth in Tier-2 and Tier-3 cities.
• Focus on employment generation in urban areas.

4. Promoting Formal Employment

• Encourage shift towards regular salaried jobs.
• Expand social security coverage for workers.

5. Engaging NEET Youth

• Introduce bridge courses, internships, and apprenticeship programmes.
• Target the 25% inactive youth population for skill integration.

Conclusion

The PLFS 2025 report indicates that India’s labour market is showing signs of stability and structural transformation, especially towards manufacturing and formal employment. However, challenges such as high NEET levels, gender disparities, and low skill development continue to limit progress. Addressing these issues is essential for effectively utilising India’s demographic potential in the coming years.