Released on May 15, 2025, the Periodic Labour Force Survey (PLFS) Monthly Bulletin for April 2025 provides critical insights into India’s labour market dynamics. Conducted by the Ministry of Statistics and Programme Implementation, this survey tracks key indicators such as Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) in both rural and urban areas. This post explores the findings and their significance for understanding employment trends in India.
Key Labour Market Indicators
Labour Force Participation Rate (LFPR)
The LFPR for individuals aged 15 years and above in April 2025 was 55.6% under the Current Weekly Status (CWS). In rural areas, the LFPR stood at 58.0%, while in urban areas, it was 50.7%. Notably, male LFPR was significantly higher, with 79.0% in rural areas and 75.3% in urban areas, compared to female LFPR of 38.2% in rural areas and 25.7% in urban areas.
Worker Population Ratio (WPR)
The WPR, which measures the percentage of employed persons, was 52.8% at the national level. Rural areas recorded a WPR of 55.4%, while urban areas had a WPR of 47.4%. For females, the WPR was 36.8% in rural areas and 23.5% in urban areas, highlighting a significant gender gap in employment.
Unemployment Rate (UR)
The national Unemployment Rate for April 2025 was 5.1%. The male UR was 5.2%, slightly higher than the female UR of 5.0%. Urban areas reported a higher UR of 6.5% compared to 4.5% in rural areas, reflecting urban employment challenges.
Revamped PLFS Methodology
Enhanced Sampling Design
Since January 2025, the PLFS has adopted a revamped methodology to provide high-frequency labour market data. A rotational panel sampling design ensures that 75% of first-stage sampling units (FSUs) are retained between consecutive months. Each selected household is surveyed four times over four months, improving data reliability. In April 2025, the survey covered 7,511 FSUs, 89,434 households, and 3,80,838 individuals across rural and urban areas.
The updated methodology also includes changes in the survey schedule and increased household sampling (from 8 to 12 households per FSU), ensuring more robust estimates.
Why These Indicators Matter
Insights for Policy and Development
The PLFS data offers a comprehensive view of India’s labour market, highlighting disparities between rural and urban areas, as well as gender-based differences. The higher LFPR and WPR in rural areas suggest stronger workforce engagement, while urban areas face higher unemployment challenges. The gender gap in employment underscores the need for targeted initiatives to enhance female workforce participation. These insights are crucial for shaping policies that promote inclusive economic growth and job creation.
Key Facts About PLFS and Labour Market Trends
- The Periodic Labour Force Survey (PLFS) provides monthly, quarterly, and annual estimates of employment and unemployment indicators.
- The April 2025 bulletin, released on May 15, 2025, is the first under the revamped PLFS methodology introduced in January 2025.
- LFPR measures the percentage of people working or seeking work, with a national rate of 55.6% in April 2025.
- WPR indicates employment levels, with rural areas at 55.4% and urban areas at 47.4%.
- The Unemployment Rate of 5.1% reflects moderate job market challenges, with urban areas facing a higher UR of 6.5%.