Mumbai : SBI Research today released its latest report titled "How India Works Today," providing a comprehensive analysis of India’s labour market based on unit-level data from the Periodic Labour Force Survey (PLFS) 2025. The report highlights a significant structural shift in employment and a robust decline in youth unemployment.
Key Highlights of the Report:
Structural Shift from Agriculture: India's workforce is moving away from agriculture. The share of agriculture in the workforce has declined by 23% over a 37-year period, dropping from 66% in 1987-88 to 43% in 2023-24.
Rise in Manufacturing & Large Enterprises: Large enterprises (employing >20 workers) now account for 13.7% of the total workforce, up from 10.8% in 2024, driven by the government's push for manufacturing.
Labour Force Participation Rate (LFPR): The LFPR for individuals aged 15 and above stands at 59.3% in 2025. While male LFPR is 79.1%, female participation has shown progress reaching 40.0%.
Significant Drop in Youth Unemployment: Youth unemployment (aged 15-29) has dropped to 9.9% in 2025, which is significantly lower than the global average and previous Indian benchmarks.
Regional Performance: States like Gujarat (0.9%), Madhya Pradesh (1.5%), and Karnataka (2.3%) exhibit the lowest unemployment rates, indicating strong local labour market absorption.
The Impact of Skills: The report establishes a direct correlation between formal training and wages. Own-funded training was found to increase the probability of securing regular wage employment by 3%.
Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI, commented: "The latest PLFS data confirms that India is in the midst of a historic transition. The move towards manufacturing and large-scale enterprises, coupled with a steady rise in female labour participation, signals a maturing economy that is successfully generating diverse employment opportunities."