PLFS and ASUSE 2025: Labour Market and Informal Enterprise Landscape

Context

The National Statistics Office (NSO) has released two reports—Labour Market Dynamics in Million-plus Cities and the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025. Together, they provide the first comprehensive city-level assessment of labour market dynamics and the informal enterprise landscape across India’s 46 million-plus cities, offering valuable inputs for labour market reforms, MSME development, and urban planning.    

Periodic Labour Force Survey (PLFS)

1. The Periodic Labour Force Survey (PLFS) is conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
2. Introduced in 2017, it replaced the earlier Employment–Unemployment Surveys to provide regular and reliable labour market statistics.
3. It is India’s principal source of official data on employment and unemployment.

Objectives

1. Estimate employment and unemployment indicators.
2. Measure labour force participation, employment, and unemployment trends.
3. Generate annual and quarterly labour market statistics.
4. Support evidence-based policymaking on employment, skill development, and labour welfare.

Key Labour Market Indicators

1. Labour Force Participation Rate (LFPR): Percentage of the population that is employed or actively seeking work.
2. Worker Population Ratio (WPR): Percentage of the population that is employed.
3. Unemployment Rate (UR): Percentage of the labour force that is unemployed but actively seeking work.
4. Current Weekly Status (CWS): Employment status based on an individual’s activity during the previous seven days.
5. Usual Status (US): Employment status based on an individual’s usual activity over a longer reference period.

Annual Survey of Unincorporated Sector Enterprises (ASUSE)

1. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) is an annual survey conducted by the NSO.
2. It provides official statistics on the structure and performance of unincorporated non-agricultural enterprises, excluding the construction sector.
3. The survey collects information on:

1. 1. Employment.
   2. Number of enterprises.
   3. Gross Value Added (GVA).
   4. Productivity.
   5. Wages and emoluments.
   6. Ownership patterns.

1. It serves as a key source of official statistics for policymaking on MSMEs, urban employment, and the informal economy.

Coverage of ASUSE

1. Covers unincorporated non-agricultural enterprises.
2. Includes:
   1. Manufacturing enterprises.
   2. Trade establishments.
   3. Service enterprises.
3. Excludes:
   1. Agriculture.
   2. Construction.
   3. Incorporated companies.

Key Findings of PLFS 2025

1. Labour Market Trends

1. The Labour Force Participation Rate (LFPR) stood at 52.4%, marginally higher than in other urban areas.
2. The Worker Population Ratio (WPR) increased to 49.8%, reflecting improved employment outcomes.
3. The Unemployment Rate (UR) under the Usual Status approach declined to 4.9%, broadly in line with the national urban average.
4. Urban unemployment has shown a sustained decline since 2017–18, indicating improving labour market conditions.

2. Female Labour Force Participation

1. The female Worker Population Ratio increased from 17.9% in 2017–18 to 25.5% in 2025.
2. Million-plus cities also recorded a lower proportion of youth classified as Not in Employment, Education or Training (NEET) compared to other urban areas.

3. Employment Profile

1. 58.5% of workers are engaged in regular wage or salaried employment.
2. Casual employment accounts for only 6.3%, reflecting relatively higher employment stability than in other urban areas.
3. Workers also recorded higher average working hours than those in other urban areas.

Key Findings of ASUSE 2025

1. Informal Enterprise Landscape

The 46 million-plus cities account for:

1. Around 39 lakh unincorporated enterprises.
2. Nearly 98 crore informal workers.
3. About 13% of India’s informal establishments.
4. Around 16% of India’s informal employment.
5. Nearly 21% of the Gross Value Added (GVA) of India’s unincorporated non-agricultural sector.

The surveyed cities are located across 17 States and one Union Territory.

2. Major Urban Centres

1. Greater Hyderabad recorded the largest informal workforce.
2. Kolkata had the highest number of unincorporated enterprises.
3. Delhi, Bengaluru, Surat, Jaipur, and Greater Mumbai also emerged as major hubs of informal employment and enterprise activity.
4. Together, these six cities account for nearly 40% of informal employment across the surveyed cities.

3. Women in the Informal Economy

1. Women constitute nearly 26% of the informal workforce.
2. Female participation is highest in Greater Visakhapatnam and Surat, while Srinagar and Varanasi record the lowest levels.
3. The variation reflects differences in local economic structures, industrial composition, and socio-cultural factors.

4. Productivity and Earnings

1. Pimpri-Chinchwad, Greater Hyderabad, and Delhi recorded the highest Gross Value Added (GVA) per worker.
2. Jaipur recorded the highest average annual emoluments per hired worker, followed by Greater Hyderabad.
3. The average annual emoluments across the surveyed cities stood at approximately ₹1.51 lakh.

Policy Implications

1. Promote quality and productive urban employment.
2. Increase women’s labour force participation through skill development, safe workplaces, childcare support, and improved employment opportunities.
3. Strengthen MSMEs and informal enterprises through better access to finance, technology, infrastructure, and markets.
4. Expand formalisation by improving access to institutional finance, social security, and digital platforms.
5. Align skill development programmes with the evolving requirements of urban industries.
6. Enhance enterprise productivity through technology adoption, innovation, and capacity building.
7. Strengthen evidence-based policymaking by effectively utilising PLFS and ASUSE data for employment generation and urban planning.

Conclusion

The PLFS and ASUSE 2025 reports highlight improving labour market outcomes while reaffirming the central role of the informal economy in India’s urban development. Their findings provide a robust evidence base for policies aimed at generating quality employment, strengthening MSMEs, promoting formalisation, and enhancing productivity. By supporting inclusive and sustainable urban growth, these surveys will play an important role in advancing the vision of Viksit Bharat.