Periodic Labour Force Survey and Annual Survey of Unincorporated Sector Enterprises
iasparliament
July 06, 2026
Mains: GS III – Economy
Why in News?
Recently, Periodic Labour Force Survey (PLFS) 2025 and the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 was released.
What PLFS and ASUSE?
PLFS – Periodic Labour Force Survey
Conducted by – The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
Introduced in – 2017, it replaced the earlier Employment-Unemployment Surveys to provide more frequent and reliable labour market data.
Objectives
Estimate employment and unemployment indicators
Measure labour force participation in rural and urban areas
Generate annual and quarterly labour market statistics
Support evidence-based policymaking on employment and skill development
Key Indicators
Labour Force Participation Rate (LFPR) – Percentage of the population that is either employed or actively seeking work.
Worker Population Ratio (WPR) – Percentage of the population that is employed.
Unemployment Rate (UR) – Percentage of the labour force that is unemployed but actively seeking work.
Current Weekly Status (CWS) and Usual Status (US) – Two different reference periods used to estimate employment and unemployment.
ASUSE – The Annual Survey of Unincorporated Sector Enterprises.
Conducted by – National Statistics Office NSO.
Coverage –It provides information on Employment generation, Number of enterprises, Gross Value Added (GVA), Productivity, Wages and emoluments and Ownership patterns.
It primarily includes Manufacturing units, Trade establishments and Service enterprises.
It covers unincorporated non-agricultural enterprises, excluding construction.
ASUSE serves as an important source of policy inputs for MSMEs, urban development, and labour reforms.
The National Statistical Office (NSO)
It is the apex statistical agency of the Government of India, operating under the Ministry of Statistics and Programme Implementation (MoSPI).
Formed in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO).
It is responsible for compiling macroeconomic indicators (such as GDP, IIP, and CPI) and conducting large-scale socio-economic surveys.
What are the key findings in PLFS?
Rising Labour Force Participation – The Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased from 47.7% in 2017–18 to 52.4% in 2025, indicating greater involvement of the working-age population in economic activities.
This steady increase reflects expanding employment opportunities and stronger labour market engagement.
Female LFPR rose sharply from 19.8% in 2017–18 to 27.2% in 2025, representing a remarkable increase of 7.4 percentage points.
Male participation also improved modestly, rising from 74.2% to 75.9% during the same period.
These trends suggest that economic growth in major cities is gradually becoming more inclusive.
Growth in Employment – The Worker Population Ratio (WPR), which measures the proportion of employed persons in the population, also recorded consistent growth.
Overall WPR increased from 43.9% in 2017–18 to 49.8% in 2025, reflecting the expansion of employment opportunities across large urban centres.
Women's employment witnessed particularly strong progress. Female WPR increased from 17.9% to 25.5%, while male WPR rose from 68.6% to 72.6%.
The faster increase among women indicates improving access to jobs and greater workforce participation, although a considerable gender gap still persists.
Declining Unemployment – Another notable achievement is the sustained decline in unemployment.
The overall Unemployment Rate (UR) under the usual status fell from 7.9% in 2017–18 to 4.9% in 2025.
Male unemployment declined significantly from 7.5% to 4.5%, while female unemployment reduced from a peak of 10.4% in 2018–19 to 6.1% in 2025.
The unemployment rate in million-plus cities is now almost identical to the urban national average, indicating healthy labour market conditions in major metropolitan areas.
Employment Pattern in Million-Plus Cities – The occupational structure of million-plus cities differs considerably from other urban areas.
More than 58% of workers are engaged in regular wage or salaried employment, compared to only 42.9% in other urban regions.
Casual labour accounts for only 6.3%, less than half the corresponding urban average.
These cities also have a larger concentration of employment in transport, communication, financial services, and other service sectors, while agriculture contributes only 1.6% of employment.
This highlights the advanced and diversified nature of metropolitan economies.
Higher Earnings and Better Working Conditions – Workers in million-plus cities enjoy higher average earnings across all categories of employment.
Average monthly earnings reached Rs.30,858 for self-employed workers, Rs.28,808 for regular salaried employees, and Rs.624 per day for casual labourers.
These earnings exceed the corresponding urban India averages by substantial margins.
Additionally, workers in these cities generally reported longer working hours and lower levels of youth unemployment.
The proportion of youth aged 15–29 years who were Not in Employment, Education or Training (NEET) stood at 22.2%, lower than the urban average of 25%, indicating better opportunities for young people.
Reasons for Remaining outside the Labour Force – The survey also highlights persistent social and educational factors affecting labour participation.
Among men who were outside the labour force, over 53% cited continuation of studies as the primary reason.
In contrast, nearly 69% of women reported childcare responsibilities and household commitments as the main reason for remaining outside the workforce.
This finding underlines the need for improved childcare infrastructure, flexible work arrangements, and supportive social policies to increase female labour force participation further.
What are the key findings of ASUSE?
Urban Unincorporated Enterprise Landscape – The ASUSE 2025 report provides the first detailed statistical assessment of the unincorporated non-agricultural sector in India's million-plus cities.
Together, these 46 cities account for 13% of India's establishments, 16% of employment, and 21% of Gross Value Added (GVA) generated by the country's unincorporated non-agricultural sector.
These figures clearly demonstrate the central role of metropolitan cities in India's entrepreneurial ecosystem and urban economy.
Centres of Entrepreneurship – Some cities have emerged as major entrepreneurial hubs.
Kolkata, Surat, and Greater Hyderabad together account for more than 22% of all unincorporated establishments among million-plus cities.
Similarly, Greater Hyderabad, Delhi, and Kolkata employ nearly 22% of the workforce engaged in the unincorporated sector.
The concentration of enterprises in these cities reflects better infrastructure, larger consumer markets, improved connectivity, and favourable business ecosystems.
Women Entrepreneurship and Employment – Women are playing an increasingly important role in urban entrepreneurship.
In 32 out of 46 cities, more than 20% of establishments are owned by women.
Particularly impressive performances were observed in Surat, Vadodara, and Pune, where women-owned enterprises account for over 40% of all proprietary establishments.
Women also constitute a significant share of the workforce.
In 19 cities, female workers represent more than 30% of total employment in the unincorporated sector, highlighting the growing contribution of women to India's urban economy.
Productivity and Enterprise Performance – Million-plus cities outperform other urban areas in terms of productivity.
Gross Value Added per worker is estimated at Rs.2.11 lakh, compared to Rs.1.80 lakh in other urban areas.
Similarly, GVA per establishment is significantly higher at Rs.4.17 lakh, reflecting greater efficiency and value creation.
Cities such as Pimpri Chinchwad, Greater Hyderabad, Delhi, and Faridabad emerged as top performers in productivity, demonstrating the importance of industrial clusters, skilled labour, and modern infrastructure.
Nearly 24.3% of establishments regularly employ hired workers compared to 19% in other urban areas.
Cities such as Srinagar, Greater Hyderabad, and Delhi recorded the highest proportion of establishments employing regular workers.
This indicates that metropolitan enterprises are not only more productive but also contribute significantly to formal and semi-formal job creation.
Policy Significance – These reports represent an important milestone in strengthening India's urban statistical system.
The availability of city-level estimates enables governments to formulate evidence-based policies on employment generation, skill development, urban planning, infrastructure investment, women's economic empowerment, and enterprise promotion.
Improved statistical coverage also supports the broader vision of Viksit Bharat by facilitating better governance and efficient resource allocation.
What lies ahead?
The NSO's PLFS 2025 and ASUSE 2025 reports demonstrate that India's million-plus cities are becoming increasingly dynamic centres of employment, entrepreneurship, and productivity.
Rising labour force participation, declining unemployment, growing female workforce participation, higher earnings, stronger enterprise productivity, and expanding women-led businesses collectively highlight the transformative role of urban India in the country's economic development.
However, challenges such as gender disparities in labour participation and balancing work with family responsibilities remain.
Going forward, targeted policies that promote inclusive growth, skill development, women's employment, and enterprise expansion will be essential to fully realise the potential of India's metropolitan economy.
