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NSO ‘Labour Market Dynamics in Million-Plus Cities’ Report

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Source: Times of India

Context

A newly released National Statistics Office (NSO) report titled “Labour Market Dynamics in Million-Plus Cities” has revealed that ~69% (68.7%) of women in India’s top 46 cities with million-plus population are kept out of the labour force by childcare and household chores — highlighting the persistent gender bias in care work even in India’s most affluent urban centres. The report — based on the Periodic Labour Force Survey (PLFS) 2024-25 — provides the first comprehensive statistical profile of employment across India’s 46 largest cities. It also shows that women in these cities earn 23% less than men in salaried jobs (₹23,700 vs ₹30,700/month), and less than half of men in self-employment (₹16,160 vs ₹33,880). Only 1% of men cited childcare as a reason for staying out of the labour force. Despite this, Female LFPR in million-plus cities has risen from 19.8% (2017-18) to 27.2% (2025) — indicating slow but visible progress. The report also flags city-level variations — with Howrah (83%), Surat (81%), Pimpri-Chinchwad and Bhopal (78%) at the top for women citing care burdens, while Coimbatore (38%) and Agra (41%) are at the bottom.

The report at a glance

  • Report: “Labour Market Dynamics in Million-Plus Cities”.
  • Published by: National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
  • Coverage: 46 cities with 1 million+ (10 lakh+) population.
  • Data year: 2025 (reference period July 2024 – June 2025).
  • Based on: Periodic Labour Force Survey (PLFS) 2024-25.
  • Companion report: Urban Unincorporated Enterprise Landscape: ASUSE 2025 — on informal enterprises.

Which cities show the highest share of women citing care work as the reason?

  • Howrah (West Bengal)83%.
  • Surat (Gujarat)81%.
  • Pimpri-Chinchwad (Maharashtra)78%.
  • Bhopal (Madhya Pradesh)78%.
  • Dhanbad (Jharkhand)77%.

Which cities show the lowest share?

  • Coimbatore (Tamil Nadu)38%.
  • Agra (Uttar Pradesh)41%.
  • Kota (Rajasthan)57%.
  • Hyderabad (Telangana)58%.
  • Visakhapatnam (Andhra Pradesh)60%.
  • Srinagar (Jammu & Kashmir)60%.

What about youth (15-29) NEET rate?

  • NEET (Not in Employment, Education, or Training): 22.2% in million-plus cities vs 25% urban India.
  • Slightly better than the urban average — but 1 in 5 urban youth still NEET.

What is PLFS?

  • Full form: Periodic Labour Force Survey.
  • Conducted by: NSO (National Statistics Office) under MoSPI.
  • Introduced: 2017-18.
  • Replaced: Earlier quinquennial (once every 5 years) Employment-Unemployment Surveys of the NSSO.
  • Recommended by: Amitabh Kundu Committee (2010).
  • Reference period: July to June (annual PLFS reports).
  • Frequency: Annual + monthly bulletins introduced from 2025-26.
  • Sample: ~1 lakh households per year.
  • Urban households: Interviewed 4 times a year (rotational panel).
  • Rural households: Interviewed once a year.

What are the key definitions?

  • LFPR (Labour Force Participation Rate): % of population aged 15+ that is either employed or seeking work.
  • WPR (Worker Population Ratio): % of population aged 15+ that is actually employed.
  • Unemployment Rate: % of labour force that is unable to find work despite seeking.
  • Usual Status (US): Reference period = last 365 days.
  • Current Weekly Status (CWS): Reference period = last 7 days.
  • NEET: Not in Employment, Education, or Training (aged 15-29).

What is ASUSE?

  • Full form: Annual Survey of Unincorporated Sector Enterprises.
  • Covers unincorporated non-agricultural enterprises (excluding construction).
  • Includes: Manufacturing units, Trade establishments, Service enterprises.
  • Serves as a key source for MSME + urban development + labour reform policy.
  • ASUSE 2025 highlights:
    • Greater Hyderabad: Highest informal workers — ~15.7 lakh.
    • Kolkata: Largest number of unincorporated enterprises — ~8.84 lakh.

What is NSO / MoSPI?

  • NSO: National Statistics Office — the statistical wing of MoSPI, formed in May 2019 by merging CSO (Central Statistics Office) + NSSO (National Sample Survey Office).
  • MoSPI: Ministry of Statistics and Programme Implementation — created on 15 October 1999.
  • Union Minister (2026): Shri Rao Inderjit Singh (Minister of State – Independent Charge).
  • Nodal for: National statistical system, PLFS, NSS surveys, Consumer Expenditure Survey, GDP compilation, IIP, Housing Condition Survey, Census-linked statistics.

Practice MCQs

Q1. With reference to the NSO ‘Labour Market Dynamics in Million-Plus Cities’ Report, consider the following statements:

  1. It covers 46 cities in India with population of 10 lakh (1 million) or more.
  2. It is based on the Periodic Labour Force Survey (PLFS) 2024-25.
  3. It found that approximately 69% of women in these cities are out of the workforce due to childcare and household chores.
  4. It found that approximately 50% of men in these cities cited childcare as the reason for being out of the workforce.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; only ~1% of men cited childcare or household chores as the reason for being out of the workforce — NOT 50%. The dominant reason for men (~53.5%) was pursuing higher studies.)

Q2. With reference to the wage disparity findings in the NSO report on million-plus cities, consider the following statements:

  1. Women in salaried jobs earn about 23% less than men in these cities (₹23,700 vs ₹30,700/month).
  2. In self-employment, women earn less than half of what men earn (₹16,160 vs ₹33,880/month).
  3. Kalyan-Dombivli, Navi Mumbai, and Nagpur are among the worst cities for gender pay disparity.
  4. Prayagraj is the only major city where women earn more than men.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(All four statements are correct.)

Q3. With reference to India’s female workforce participation in million-plus cities, consider the following statements:

  1. Female LFPR in million-plus cities rose from 19.8% (2017-18) to 27.2% (2025).
  2. Coimbatore had the lowest share (38%) of women citing childcare/household chores as reasons for staying out of the workforce.
  3. Howrah had the highest share (83%) of women citing care work as the reason for exiting the workforce.
  4. India’s overall female LFPR is currently higher than the OECD average.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; India’s female LFPR (~42% per PLFS 2024-25 Usual Status) is well BELOW the OECD average of ~65% — NOT higher.)

Q4. With reference to the Periodic Labour Force Survey (PLFS), consider the following statements:

  1. PLFS was introduced by the NSO in 2017-18 to replace the earlier quinquennial Employment-Unemployment Surveys.
  2. Its introduction was recommended by the Amitabh Kundu Committee.
  3. PLFS interviews urban households four times a year on a rotational panel basis.
  4. PLFS is conducted by the Reserve Bank of India (RBI).

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; PLFS is conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) — NOT the RBI.)

Answer Key

  1. (c) — Statement 4 wrong: Only 1% of men cited childcare, not 50%.
  2. (d) — All four correct.
  3. (c) — Statement 4 wrong: India’s FLPR below OECD avg.
  4. (c) — Statement 4 wrong: PLFS conducted by NSO, not RBI.

Exam Relevance

  • UPSC Prelims & Mains: CRITICAL — GS-I (Society, Women, Urbanisation); GS-II (Government Policies, Vulnerable Sections); GS-III (Employment, Growth); Prelims (PLFS, NSO, definitions); Mains-Essay on Women/Gender.
  • NABARD Grade A: Very High — ESI on female workforce, rural-urban labour dynamics; Phase II descriptive.
  • State PCS: Very High — Especially for Maharashtra, Gujarat, Tamil Nadu, UP, WB, MP, Karnataka — city-specific data.
  • RBI Grade B (Phase I + II): CRITICAL — ESI on labour markets, gender + productivity, PLFS methodology; Phase II descriptive.
  • SIDBI Grade A: Very High — Women entrepreneurship + MSMEs + informal sector (ASUSE).
  • SEBI Grade A: High — Gender pay gap = ESG factor.
  • IRDAI Grade A: Medium-High — Women workforce = insurance market.

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