India’s labour market shows gains, but challenges persist, Pg12

Key Highlights:

• India's labour market shows gains with a Labour Force Participation Rate of 59%, a Workforce Participation Rate of 57%, and an unemployment rate of 3% in 2025.
• Youth unemployment has decreased since 2024, with improvements noted for both rural and urban youth.
• The proportion of regular wage and salaried employment has risen from 22% to 24%, indicating better job quality.
• Female earnings in regular salaried employment grew by 7%, outpacing the 6% growth for men.
• Agriculture's share of employment has decreased to 43%, while manufacturing and services have grown to approximately 12% and 13%, respectively.

Detailed Insights:

• The Periodic Labour Force Survey (PLFS) 2025 indicates positive trends in India's labour market, including increased workforce participation and improved employment quality.
• Despite progress, challenges persist, such as the education-to-employment transition, where a significant number of graduates struggle to find employment.
• Limited access to formal skills training remains a barrier, with only 4% of individuals aged 15-59 having received such training, highlighting the need for skill development initiatives.
• Women's workforce participation is hindered by childcare and household responsibilities, leading to an unequal distribution of unpaid work and longer working hours for men.
• A significant portion, around 25%, of individuals aged 15-29 fall into the NEET (Not in Education, Employment, or Training) category, requiring timely intervention to prevent long-term disengagement from the workforce.
• Targeted interventions, such as industry-relevant skills training, gender-responsive policies, and apprenticeship programs, are crucial for translating labour market gains into productivity-led economic growth.
• The shift towards salaried employment is providing more tangible economic gains for women, although gender gaps in absolute earnings persist across different employment types.

Key Concepts Involved:

• Labour Force Participation Rate (LFPR): Proportion of a population that is either employed or actively seeking employment.
• Workforce Participation Rate: Proportion of the population that is employed.
• NEET (Not in Education, Employment, or Training): Individuals who are not in education, employment, or training programs.