According to the first Periodic Labour Force Survey (PLFS)-based report on labour-market dynamics in million-plus cities, these urban centers demonstrated superior performance compared to overall urban India across key employment indicators. The report, released by the Ministry of Statistics and Programme Implementation, analyzed 46 cities whose population, based on Census 2011, was above one million. These cities achieved a labour-force participation rate of 52.4 per cent, an unemployment rate of 4.9 per cent, and a higher share of regular wage or salaried jobs at 58.5 per cent. As per Business Standard, these cities are emerging as the country's most rewarding labour markets, with workers earning more and having fewer youth who are not in employment, education, or training compared to their counterparts elsewhere in urban India.
The report reveals significant wage improvements across all employment categories in million-plus cities. As reported by the Ministry of Statistics and Programme Implementation, workers earn more across all employment categories in these urban centers. The gains are particularly pronounced for women, with self-employed women in million-plus cities earning about 58 per cent more than overall urban India. Additionally, female casual labourers receive 18 per cent higher daily wages compared to their counterparts in other urban areas. According to Business Standard, a majority of men and nearly two in three women hold regular salaried positions in these cities, with self-employed women earning noticeably more than their urban peers.
According to the PLFS report, the employment landscape for young workers shows positive trends in million-plus cities. The share of the youth aged 15-29 years who are not in employment, education, or training is lower at 22.2 per cent, compared with 25 per cent in urban India. This difference reflects relatively good access to education and employment opportunities in these urban centers, indicating stronger integration of youth into the formal economy. As per Business Standard, these cities offer higher wages and better job quality, with workers earning more and having fewer youth who are not in employment, education, or training than their counterparts elsewhere in urban India.
The report highlights stark disparities across cities in employment performance and gender participation. Cities in Gujarat such as Surat, Ahmedabad and Rajkot report low unemployment below 1.5 per cent, while Patna (20.9 per cent), Dhanbad (15 per cent) and Srinagar (11.7 per cent) lag behind. Female labour-force participation remains particularly low, with only 15.5 per cent in Delhi, 15.1 per cent in Faridabad, and 14.8 per cent in Patna. The gender pay gap itself varies sharply by city, with men earning nearly twice of women's earnings in Kalyan-Dombivli, while in Prayagraj, women earn more than men. The survey identifies child care or personal commitments in home-making as the primary reason women remain outside the labour force, highlighting the need for expanding affordable child care and ensuring workplace flexibility.
A significant finding from the PLFS report is the correlation between manufacturing employment share and wage levels. Million-plus cities where manufacturing accounts for a larger share of employment tend to pay lower hourly wages to salaried workers. For instance, Ludhiana and Surat, where manufacturing contributes over 50 per cent of total employment, are among the lowest-paying cities for salaried workers in hourly terms. In contrast, Navi Mumbai, where manufacturing accounts for only about 13 per cent of employment, records the highest hourly wage rate among million-plus cities. This pattern suggests that cities with higher manufacturing bases may have lower-skilled manufacturing jobs, while those with smaller manufacturing sectors show better wage distribution. As per Business Standard, cities with more manufacturing jobs tend to pay less, with Ludhiana and Surat being two clear examples of this trend.
