Labour Force Participation in India: State-wise Insights

India’s workforce drives its expanding economy, with millions engaged in employment or job searching.

By 2025, the labour force participation rate in India is projected to reach 60.5%, indicating that 60.5% of individuals aged 15-59 are either employed or actively seeking employment.

Presented two tables illustrate this data across all 28 states and 8 union territories, one detailing participation rates as percentages and the other presenting the number of workers in millions.

Certain states exhibit high participation rates, while others fall behind.

State-wise Labour participation rate in India

Rank	State/Union Territory	Labour Force Participation Rate (%)
1	Sikkim	77.6*
2	Himachal Pradesh	76.0*
3	Nagaland	75.0*
4	Manipur	73.0*
5	Meghalaya	72.0*
6	Arunachal Pradesh	71.0*
7	Mizoram	70.0*
8	Tripura	69.0*
9	Andhra Pradesh	68.0*
10	Karnataka	67.0*
11	Tamil Nadu	66.0*
12	Telangana	65.0*
13	Goa	64.0*
14	Chhattisgarh	63.0*
15	Odisha	62.0*
16	West Bengal	61.0*
17	India (National Average)	60.5
18	Gujarat	60.0*
19	Maharashtra	59.0*
20	Rajasthan	58.0*
21	Kerala	57.0*
22	Madhya Pradesh	56.0*
23	Jharkhand	55.0*
24	Uttarakhand	54.0*
25	Haryana	53.0*
26	Punjab	52.0*
27	Jammu and Kashmir	51.0*
28	Andaman and Nicobar Islands	50.0*
29	Uttar Pradesh	49.0*
30	Assam	48.0*
31	Chandigarh	47.0*
32	Delhi	46.0*
33	Puducherry	45.0*
34	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	44.0*
35	Ladakh	43.0*
36	Lakshadweep	42.0*
37	Bihar	41.0

The first table organizes states according to their Labour Force Participation Rate (LFPR), which indicates the percentage of working-age individuals engaged in the job market.

Sikkim ranks first with 77.6%, followed by Himachal Pradesh (76.0%), Nagaland (75.0%), Manipur (73.0%), and Meghalaya (72.0%).

The national average stands at 60.5%, whereas Bihar (41.0%), Lakshadweep (42.0%), and Ladakh (43.0%) occupy the lowest positions.

Sikkim’s leading position is attributed to its tourism industry, where a significant portion of the population is employed in hotels, retail, or agriculture.

Himachal Pradesh’s 76.0% reflects robust rural employment in apple orchards and small enterprises.

The high participation rates in northeastern states like Nagaland and Manipur can be linked to tribal communities that frequently engage in agriculture or local crafts, with an increasing number of women entering the workforce.

What accounts for the lag in some states? Bihar’s 41.0% is a result of elevated unemployment rates and low female participation (only 34.1% for women compared to 82.1% for men, PLFS 2022-23).

Lakshadweep’s 42.0% is indicative of its small population and limited employment opportunities, primarily in fishing.

Delhi’s 46.0% reflects urban challenges, where high living expenses deter some individuals from pursuing low-wage jobs.

State-wise Labour participation in million in India

Rank	State/Union Territory	Labour Force Participation (Million People)
1	Uttar Pradesh	75.22*
2	Bihar	33.76*
3	Maharashtra	32.52*
4	West Bengal	25.61*
5	Madhya Pradesh	21.39*
6	Rajasthan	20.39*
7	Tamil Nadu	19.01*
8	Karnataka	16.30*
9	Gujarat	16.24*
10	Andhra Pradesh	12.49*
11	Odisha	11.60*
12	Telangana	10.27*
13	Jharkhand	8.15*
14	Assam	7.89*
15	Kerala	8.08*
16	Chhattisgarh	7.26*
17	Haryana	6.52*
18	Punjab	6.82*
19	Delhi	5.63*
20	Uttarakhand	2.63*
21	Himachal Pradesh	1.74*
22	Jammu and Kashmir	3.07*
23	Tripura	0.96*
24	Meghalaya	0.74*
25	Manipur	0.70*
26	Nagaland	0.48*
27	Arunachal Pradesh	0.37*
28	Mizoram	0.30*
29	Sikkim	0.15*
30	Goa	0.37*
31	Puducherry	0.30*
32	Chandigarh	0.30*
33	Andaman and Nicobar Islands	0.11*
34	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	0.15*
35	Ladakh	0.07*
36	Lakshadweep	0.02*

The second table illustrates the labour force comprising millions of individuals.

Uttar Pradesh leads with 75.22 million, followed by Bihar with 33.76 million, Maharashtra with 32.52 million, West Bengal with 25.61 million, and Madhya Pradesh with 21.39 million.

Smaller regions such as Lakshadweep (0.02 million), Ladakh (0.07 million), and Sikkim (0.15 million) exhibit the smallest workforces.

The substantial workforce of 75.22 million in Uttar Pradesh is indicative of its large population of 241.5 million, despite a low labour force participation rate (LFPR) of 49.0%.

Bihar, with 33.76 million workers, is derived from its population of 125 million, although its low LFPR of 41.0% constrains the total.

Maharashtra’s workforce of 32.52 million is linked to its economic centers like Mumbai, which attract workers in technology and trade.

The small states possess minimal workforces due to their limited populations.

Lakshadweep’s workforce of 0.02 million corresponds with its population of 64,000, while Ladakh’s 0.07 million reflects its sparse population of 290,000.

These regions tend to concentrate on specialized employment opportunities such as tourism or government positions.

Why Are There Disparities? Principal Factors

Several elements account for the inconsistent labour force participation in India by 2025:

Type of Economy: Sikkim boasts a labour force participation rate (LFPR) of 77.6%, primarily due to its tourism and agriculture sectors, which provide employment for the majority of its residents.

In contrast, Bihar’s LFPR stands at 41.0%, hindered by a lack of industrial development, resulting in many individuals being unemployed or engaged in low-skill agricultural work.

Cultural Gender Norms: In northeastern states such as Meghalaya, the female participation rate exceeds 60% in crafts and agriculture, leading to a LFPR of 72.0%.

Conversely, Uttar Pradesh, with a LFPR of 49.0%, experiences low female participation (30%) due to prevailing cultural expectations.

Urban-Rural Disparity: Rural regions exhibit a higher LFPR of 59.9% compared to 54.2% in urban areas (CEDA 2024), as agriculture provides employment opportunities for all.

For instance, Himachal Pradesh, with 90% of its population in rural areas, achieves a LFPR of 76.0%, while urban Delhi, with a LFPR of 46.0%, sees fewer individuals entering the workforce due to competitive job markets.

Educational Attainment: The higher literacy rate in Tamil Nadu (66.0% LFPR, 80% literacy) facilitates access to skilled employment in information technology and manufacturing.

In contrast, Bihar’s low literacy rate (67%) restricts workers to manual labour, resulting in a LFPR of only 41.0%.

Population Dynamics: Uttar Pradesh, with a workforce of 75.22 million, significantly outnumbers Sikkim’s 0.15 million, despite having a lower LFPR. Smaller states cannot compete with larger states in terms of workforce size.

Advancements and Obstacles

India’s LFPR is projected to rise from 51.5% in 2017-18 to 60.5% in 2025 (PLFS 2023-24), propelled by initiatives such as MGNREGA, which guarantees 100 days of employment in rural areas, alongside urban job growth in the technology sector.

States like Andhra Pradesh (68.0%) are reaping the benefits of rural employment programs.

However, challenges persist. Bihar’s LFPR of 41.0% highlights significant unemployment issues, with 1.3 million individuals classified as zero-dose job seekers (Economic Survey 2023-24).

Women’s participation remains low in northern states, and smaller regions like Lakshadweep face difficulties due to a lack of job opportunities.

Source

• Office of the Registrar General & Census Commissioner, Government of India. (2023). SRS statistical report 2023.
• Ministry of Finance, Government of India. (2024). Economic survey 2023-24.