SBI Report Shows Agriculture Still Employs 43% of India's Workforce Amid Slow Shift to Non-Farm Jobs

India's agriculture sector employed 43% of the workforce in 2023–24, down from 66% in 1987–88, according to SBI's analysis of unit-level data from the Periodic Labour Force Survey (PLFS) 2025, underscoring a gradual but uneven transition to non-farm work. Small non-agricultural enterprises with fewer than 19 workers account for 42.3% of jobs, while larger firms with over 20 employees employed 13.7%—a modest rise from 10.8% in 2024.

The labour force participation rate (LFPR) for those aged 15 and above stood at 59.3% in 2025, slightly lower than 59.6% in 2024, with a stark gender gap: male LFPR was 79.1% compared to 40.0% for females. Rural areas reported higher participation at 62.8%, versus 52.2% in urban regions, reflecting stronger reliance on labor-based livelihoods outside cities.

Youth unemployment for the 15–24 age group was 9.9% in 2025, below the global average of 12.6%, though the report cautions that ongoing education skews trends for those under 30. Unemployment rates were lower among older workers, with rural male unemployment at 0.78% and urban male unemployment at 2.26%, both below official PLFS estimates.

Job quality varies significantly: regular wage work shows the lowest earnings inequality (Gini coefficient: 0.095), while self-employment shows the highest (0.183), especially among women (0.240). Women from SC, ST, and OBC groups are more likely to work in casual labour, and education strongly correlates with reduced casualisation and higher formal employment.

States show divergent employment outcomes—Karnataka, Tamil Nadu, and Odisha report higher participation and better job quality, while Uttar Pradesh, Bihar, and Punjab lag on both fronts. The SBI report will inform ongoing government assessments of labor market reforms, with the next PLFS data update scheduled for release in early 2026.