Employment, Unemployment and Poverty in India: PLFS 2026 Data, MPI, Poverty Lines, Labour Codes (+ Quiz)

Employment and poverty are two of the most important “social issues” in RBI Grade B ESI and NABARD papers, both for objective questions and descriptive answers. This guide explains the concepts and gives the latest numbers.

Measuring employment: PLFS

The Periodic Labour Force Survey (PLFS), run by the National Statistics Office (MoSPI), started in 2017. Since January 2025, it gives monthly estimates for rural and urban India.

TermFormula / meaning
Labour Force Participation Rate (LFPR)(Employed + unemployed seeking work) ÷ Population × 100
Worker Population Ratio (WPR)Employed ÷ Population × 100
Unemployment Rate (UR)Unemployed ÷ Labour force × 100
Usual statusActivity over the last 365 days (principal + subsidiary status)
Current Weekly Status (CWS)Activity in the last 7 days (used for monthly estimates)

Latest monthly PLFS (September 2026, CWS, age 15+)

IndicatorAll-IndiaRuralUrban
Unemployment rate5.0%4.2%6.9%
LFPR55.5%58.0%50.7%
WPR52.7%55.5%47.2%
Female LFPR34.6%38.9%25.9%

Monthly CWS figures are higher than the annual usual-status unemployment rate (about 3.2% in PLFS 2023-24), because they use a shorter reference period. Female LFPR has risen sharply since 2017-18 (approx 23% then).

Types of unemployment

TypeMeaningExample
DisguisedMore people working than needed; marginal productivity is zeroFamily farms
SeasonalWork only in certain seasonsAgriculture, tourism
StructuralMismatch between skills and jobsWorkers displaced by automation
FrictionalShort gap while changing jobsJob seekers between jobs
CyclicalDue to economic slowdownsRecession layoffs
Educated unemploymentGraduates unable to find suitable jobs–

The four Labour Codes

CodeReplaced
Code on Wages, 20194 laws (Minimum Wages, Payment of Wages, Payment of Bonus, Equal Remuneration)
Industrial Relations Code, 20203 laws (Trade Unions, Industrial Disputes, Standing Orders)
Code on Social Security, 20209 laws (EPF, ESI, Maternity Benefit, gratuity, etc.); covers gig and platform workers
Occupational Safety, Health and Working Conditions Code, 202013 laws

The 4 codes replaced 29 central labour laws and were brought into force in November 2025 (approx).

Employment-linked schemes: PM Viksit Bharat Rozgar Yojana (2025), VB-G RAM G (125 days of rural work from July 2026), e-Shram (unorganised workers’ database), PM Internship Scheme. See our government schemes list.

Measuring poverty

Official poverty lines (history)

CommitteeYearKey pointPoverty ratio
Y.K. Alagh task force1979Calorie-based: 2,400 (rural) and 2,100 (urban) calories–
Lakdawala1993State-specific lines using CPI-AL and CPI-IW36% (1993-94)
Suresh Tendulkar2009Added health and education spending; common basket21.9% (2011-12)
C. Rangarajan2014Higher lines (₹32/day rural, ₹47/day urban in 2011-12)29.5% (2011-12)

No new official poverty line has been fixed after Rangarajan; the government relies on MPI and consumption surveys.

Multidimensional Poverty Index (MPI)

PointDetail
Global MPIUNDP and OPHI (Oxford); 3 dimensions: health, education, standard of living (10 indicators)
National MPINITI Aayog; 12 indicators (adds maternal health and bank account)
Latest NITI findingMultidimensional poverty fell from 29.17% (2013-14) to 11.28% (2022-23); about 24.82 crore people escaped poverty

World Bank estimates

  • Extreme poverty in India fell from about 27% (2011-12) to about 5.3% (2022-23), using the new $3 a day (2021 PPP) line (as reported in 2025).
  • India’s consumption Gini index was about 25.5 (2022-23), making it one of the more equal countries by consumption (as reported).

Household Consumption Expenditure Survey (HCES) 2023-24

IndicatorRuralUrban
Average monthly per capita consumption (MPCE)about ₹4,122about ₹6,996
Share of food in spendingbelow 50%about 40%

The urban–rural gap in MPCE narrowed to about 70% (approx).

Exam-ready one-liners

  1. PLFS started in 2017; monthly estimates since January 2025 (CWS).
  2. Unemployment rate in September 2026 (CWS, 15+): 5.0%; rural 4.2%, urban 6.9%.
  3. Female LFPR in September 2026: 34.6%.
  4. Disguised unemployment means zero marginal productivity.
  5. Four Labour Codes replaced 29 central labour laws.
  6. Tendulkar poverty ratio (2011-12): 21.9%; Rangarajan: 29.5%.
  7. NITI Aayog: MPI poverty fell from 29.17% (2013-14) to 11.28% (2022-23).
  8. Global MPI is published by UNDP and OPHI.

Related reading

Quiz: test yourself

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Data from MoSPI, NITI Aayog and World Bank as reported. Figures are revised; check mospi.gov.in and niti.gov.in.

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