India's labour force is one of the largest in the world, reflecting the country's vast population and diverse economy. The labour market in India is characterized by a complex occupational pattern, influenced by factors such as economic development, technological advancements, and socio-cultural dynamics. Despite significant economic growth over the past few decades, India faces persistent challenges related to unemployment, underemployment, and labour market disparities. Understanding the intricacies of the labour force, the distribution of occupations, and the nature of unemployment is crucial for formulating effective labour policies and promoting inclusive economic development.

The activity status of the population in India provides insights into the employment and economic engagement of individuals within the labour market. This status is typically categorized into three main groups: the employed, the unemployed, and those not in the labour force (inactive population).

1.Labour Force Participation Rate (LFPR)

i.Definition: LFPR is the percentage of the working-age population (usually aged 15 and above) that is either employed or actively seeking employment.

ii.Current Trends: As of the Periodic Labour Force Survey (PLFS) 2019-2020, India’s overall LFPR stood at approximately 40.1%. However, there are significant disparities between genders, with male LFPR at around 57% and female LFPR at only 21.8%.

iii.Age Distribution: LFPR is higher among the prime working-age group (25-54 years) and lower among the younger (15-24 years) and older (55+ years) age groups. For youth, the LFPR is about 28.5%, reflecting a significant number of young people engaged in education and training.

2.Employment Status