RIGHT SKILLING, ENTREPRENEURIAL SPIRIT AND GOVERNMENT INITIATIVES CONTINUE TO BRING DOWN UNEMPLOYMENT, SAYS THE ECONOMIC SURVEY 2025-26

1. At a Glance

• Economic Survey 2025-26 (tabled by Ministry of Finance, Jan 2026) flags declining unemployment driven by skilling, entrepreneurship and labour-market reforms [1][2].
• Captures India's structural labour-market transformation — digitalisation, green transition, gig/platform work, rising female LFPR [1].
• UPSC-relevant for GS-III (employment, growth, inclusive development) and GS-II (welfare schemes, labour codes) — laden with examinable numbers on e-Shram, NCS, gig economy, PLFS.

2. Why in the News

• Economic Survey 2025-26 released on 29 Jan 2026 ahead of the Union Budget; dedicated chapter on labour markets [1].
• PLFS Annual Report 2025 (Jan–Dec 2025) released alongside, reflecting H1 FY26 improvements in unemployment & LFPR [2][3].

3. Background & Evolution

• PLFS launched by NSO/MoSPI in 2017–18, replacing quinquennial NSS Employment-Unemployment rounds [3].
• e-Shram portal launched 26 Aug 2021 by Ministry of Labour & Employment as national database of unorganised workers [1].
• National Career Service (NCS) portal launched 2015 by Ministry of Labour & Employment [1].
• Four Labour Codes enacted 2019–2020 (Wages 2019; Industrial Relations, Social Security, OSH&WC 2020) consolidating 29 central labour laws [1].
• PLFS revamp from Jan 2025 — monthly bulletins, expanded sample, rural CWS estimates [4].

4. Core Static Facts

• Source document: Economic Survey 2025-26, Ministry of Finance (Department of Economic Affairs) [1].
• NCS Portal: Over 2.3 crore vacancies mobilised in first six months of FY 2025-26 [1].
• e-Shram: 31+ crore registered unorganised workers; women = 54% of registrants [1][5].
• Gig economy: Grew from 77 lakh (FY21) → 1.20 crore (FY25) → 55% rise; ~2% of workforce; projected 6.7% of workforce by 2029-30; GDP contribution ₹2.35 lakh crore [1][5].
• Unincorporated non-farm sector: 12.9 crore individuals; 28% women [1].
• Total employed (Q2 FY26): 56.2 crore persons aged 15+; ~8.7 lakh new jobs added vs Q1 FY26 [5].
• Implementing ministries: Labour & Employment (e-Shram, NCS, Codes); MoSPI (PLFS); MSDE (skilling).
• Labour Codes: Code on Wages 2019; Industrial Relations Code 2020; Social Security Code 2020; OSH & Working Conditions Code 2020 [1].

5. Multi-Dimensional Analysis

Economic

• Self-employment revolution in rural India via 12.9 crore-strong unincorporated non-farm sector [1].
• Gig/platform economy emerging as parallel labour market — 55% growth in 4 years [1].
• NCS as labour-market intermediation tool (2.3 crore vacancies in H1 FY26) reducing search frictions [1].

Social

• Female labour force participation rising — Survey acknowledges need for flexi work hours [1].
• Women constitute 54% of e-Shram registrants and 28% of unincorporated non-farm entrepreneurs [1].
• e-Shram extends social protection to construction, migrant, domestic, street-vendor, gig workers [5].

Legal / Constitutional

• Four Labour Codes subsume 29 central laws — balance worker welfare with ease of business [1].
• Labour falls under Concurrent List (Entry 22, 23, 24) — implementation depends on state rule-notification.

Scientific / Technological

• Digital public infrastructure (e-Shram, NCS) anchors formalisation drive [1].
• Gig/platform work driven by digitalisation; green-energy transition reshaping skill demand [1].

Administrative

• PLFS revamped Jan 2025: monthly bulletins, larger sample, rural CWS coverage [4].

6. Recent Developments (last 12-18 months)

• Jan 2025: PLFS methodology overhaul — monthly bulletins begin [4].
• 2025: PLFS Annual Report (Jan–Dec 2025) released [2].
• 29 Jan 2026: Economic Survey 2025-26 tabled in Parliament — Employment chapter highlights gig growth & e-Shram milestones [1].
• H1 FY26: 2.3 crore vacancies on NCS; 56.2 crore employed in Q2 FY26 [1][5].

7. Prelims Hooks

• e-Shram portal launched 26 Aug 2021 by Ministry of Labour & Employment (not MoSPI) [1].
• e-Shram registrations crossed 31 crore; 54% women [1].
• NCS portal mobilised >2.3 crore vacancies in first 6 months of FY 2025-26 [1].
• Gig workforce: 77 lakh (FY21) → 1.20 crore (FY25), a 55% rise [1].
• Non-agri gig share projected at 6.7% of workforce by 2029-30 [5].
• Gig sector GDP contribution estimated at ₹2.35 lakh crore [5].
• Unincorporated non-farm sector: 12.9 crore persons, 28% women [1].
• Four Labour Codes: Wages (2019); IR, Social Security, OSH (all 2020) [1].
• PLFS conducted by MoSPI/NSO, launched 2017-18 [3].
• Total employed persons aged 15+ in Q2 FY26 = 56.2 crore [5].
• Economic Survey is presented by Department of Economic Affairs, Ministry of Finance, authored by Chief Economic Adviser [1].
• PLFS shifted to monthly bulletins from January 2025 [4].

8. Mains Relevance

• GS-III: Indian Economy — Growth, Development & Employment; Inclusive Growth.
• GS-II: Welfare schemes for vulnerable sections; Government policies for development.
• Probable question stems: 1. "The gig and platform economy is reshaping India's labour market. Examine the adequacy of the existing social-security architecture for gig workers." (GS-III, 250 words) 2. "Discuss how the four Labour Codes seek to balance worker welfare with ease of doing business. What are the implementation bottlenecks?" (GS-II/III) 3. "Despite rising female labour force participation, structural barriers persist. Evaluate the role of flexi-work and skilling in bridging the gap." (GS-I/III)

9. Related Topics to Study Next

• PLFS methodology & key indicators (LFPR, WPR, UR, CWS/UPS) — primary measurement framework.
• Code on Social Security, 2020 — defines gig & platform worker, mandates social-security fund.
• PM Vishwakarma & Skill India Mission (PMKVY 4.0) — skilling complement to NCS.
• Mudra Yojana / Stand-Up India / Start-Up India — entrepreneurship pillars.
• PM Internship Scheme (Budget 2024-25) — top-500 corporate internships.
• EPFO/ESIC formalisation data — alternative employment indicator.
• NITI Aayog report on gig economy "India's Booming Gig and Platform Economy" (2022).
• Female Labour Force Participation & Care Economy — gender-employment nexus.

10. Common Errors / Trap Areas

• e-Shram is under MoL&E, not MoSPI or NITI Aayog.
• NCS portal ≠ National Career Counselling; NCS launched 2015, not under Skill India.
• PLFS is conducted by MoSPI/NSO, not by Labour Ministry.
• Labour Codes were enacted in 2019 & 2020 but rules are state-notified — codes not yet uniformly operationalised.
• Confusing gig workers (task-based) with platform workers (online-platform mediated) — Social Security Code 2020 defines both separately.
• Economic Survey is presented by Ministry of Finance, not by NITI Aayog.