Economic Survey 2025-26: India's workforce crosses 560 million mark
What's the story
Finance Minister Nirmala Sitharaman has presented India's Economic Survey 2025-26 in Parliament. The document highlights the country's workforce, which has now crossed a whopping 560 million. It also emphasizes the resilience of the labor market and steady job creation across sectors. The survey is considered an important precursor to the Union Budget, setting out macroeconomic context and policy priorities amid global economic challenges.
Market stability
India's labor market: A beacon of resilience
The Economic Survey 2025-26 highlights India's labor market as a beacon of resilience, with key indicators such as rising labor force participation and declining unemployment rates. The survey credits recent employment gains to tax rationalization, deregulation, state-level labor reforms, and a continued focus on skill development. It also notes that demographic changes, technological advancements, and changing industry needs are reshaping the employment landscape with gig work emerging as a major source of income.
Policy impact
Labour codes and skilling initiatives: A step toward quality employment
The survey emphasizes the importance of implementing Labour Codes to bolster formal employment and enhance worker security, especially for women and gig workers. It also stresses on flexible vocational pathways from school level to address skill mismatches and promote job creation. Targeted skilling programs for women and youth in high-productivity sectors are seen as key to achieving inclusive outcomes and improving workforce quality.
Tech integration
Integrated information system: A digital public infrastructure
The survey advocates for an integrated information system that combines data from e-Shram on unorganized workers, NCS on job vacancies and skill requirements, and SIDH on training opportunities. This integration could enable a sharper focus on industry-driven skilling, strengthen skill-industry linkages, and help build a job-ready workforce. The survey also stresses the need to improve income protection and grievance redressal mechanisms for gig workers to ensure their well-being.