New government data from the 2025 Periodic Labour Force Survey shows Prayagraj and Patna lead major Indian cities in unemployment, both surpassing 20%. In contrast, industrial hubs like Ahmedabad and Kolkata reported rates below 2.5%. The report highlights distinct employment disparities across large cities, showing a higher reliance on regular wage jobs compared to the general urban average.
A recent government report titled 'Labour Market Dynamics in Million-plus Cities' has highlighted a stark divide in employment levels across India's largest urban centers. According to the data from the January-December 2025 Periodic Labour Force Survey (PLFS), which covered over 19,000 households, Prayagraj and Patna are facing the highest unemployment rates among cities with populations exceeding one million. Both cities reported unemployment exceeding 20 percent, standing in sharp contrast to Ahmedabad and Kolkata, where rates were recorded at under 2.5 percent.
Gender Disparities and Student Populations
The survey data reveals significant gender-based differences within these labor markets. In Prayagraj, female unemployment reached over 31 percent, while male unemployment sat at approximately 23 percent. Patna reported even higher female unemployment at over 36 percent, with male unemployment around 18 percent. The report suggests that high unemployment in these regions is partly influenced by large populations of students actively preparing for competitive examinations. Under the current weekly status approach, individuals are classified as unemployed if they do not work for at least one hour in a week despite being available for and seeking work.
Employment Trends in Major Urban Hubs
Beyond unemployment statistics, the report identifies clear structural differences between million-plus cities and the broader urban landscape of India. Regular wage and salary employment is significantly more common in these large cities, accounting for 58.5 percent of jobs compared to 47.6 percent across urban India. Female participation in these regular roles is particularly notable, with women in these cities holding 65.1 percent of regular wage jobs, surpassing the 56.4 percent share held by men. Conversely, casual labor is less common in these major hubs, making up 6.3 percent of employment compared to 12 percent in general urban areas.
Economic Drivers and Earnings
Workers in these major cities generally command higher earnings than the national urban average. Self-employed individuals in these cities earned an average of ₹30,858, significantly higher than the urban average of ₹23,013. Similarly, regular salaried employees earned an average of ₹28,808, while casual laborers saw average daily earnings of ₹624. These figures suggest that while employment availability varies drastically by region, those who are employed in these million-plus cities often benefit from higher wage structures. The report indicates that for men outside the labor force, education remains the primary reason, while for women, childcare and domestic responsibilities continue to be the main factors.