Citation :

Muktazur Rahman Kazi, "Assessing Labour Market Transformation in India: Insights from the Redesigned Periodic Labour Force Survey (PLFS) 2025," International Journal of Economics and Management Studies, vol. 13, no. 8, pp. 1-8, 2026. Crossref, https://doi.org/10.14445/23939125/IJEMS-V13I8P101

Abstract

The labour market in India has been undergoing major changes in recent times due to sustained economic growth, demographic transition and changing patterns of employment. However, it is not clear whether improvements in key labour market indicators are the result of real structural transformation or merely greater labour absorption in relatively low-productivity employment. Prior research has largely depended on earlier rounds of the Periodic Labour Force Survey (PLFS) and has generally considered dimensions of the labour market in isolation, thereby constraining the scope for a full appreciation of recent developments. In this regard, the present study uses data from the redesigned Periodic Labour Force Survey (PLFS) 2025 to examine the Indian labour market. The study is descriptive analytical in nature and uses the Annual Report 2025 of the National Statistical Office to examine Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), employment status and demographic variations in terms of gender, rural – urban residence, age and educational attainment. The findings reveal continued improvements in labour market participation and unemployment outcomes. Nevertheless, the persistent dominance of self-employment, rural–urban disparities, gender inequalities in employment quality and earnings, and relatively high unemployment among educated youth suggest that improvements in employment quantity have outpaced gains in employment quality. The study concludes that India’s labour market is undergoing a gradual, not total, structural transformation. The study provides one of the earliest comprehensive assessments based on the redesigned PLFS 2025, contributing updated empirical evidence and policy-relevant insights for promoting productive, formal and inclusive employment to support sustainable and inclusive economic growth.

Keywords

Labour Market Transformation, Periodic Labour Force Survey, Employment Quality, Structural Change, India, Labour Market Inclusion.

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