New Delhi [India], March 7 : India's labour market is showing signs of strengthening with rising employment levels and improved workforce participation, including among women, according to the Finance Ministry's Monthly Economic Review for February 2026.
The report noted that labour market indicators have been improving steadily, supported by policy reforms, social protection measures and skill development initiatives. "Recent labour market indicators reflect an improving employment landscape driven by a combination of regulatory reforms, expanded social protection, and targeted skill development initiatives," the review said.
According to the latest quarterly Periodic Labour Force Survey (PLFS) estimates for October-December 2025 (Q3 FY26), employment increased to an average of 57.4 crore persons, up from 56.2 crore in the previous quarter. Of the total employed population aged 15 years and above, 40.2 crore were male and 17.2 crore were female, reflecting rising female participation in the workforce.
The review noted "Labour market indicators point to a gradual strengthening of employment conditions... Employment increased to an average of 57.4 crore persons in Q3 FY26, including rising female participation." It adds the Budget strategy integrates job creation, skill development, education and healthcare investments to improve employability and workforce participation.
The employment conditions remained stable during the quarter, with rising labour force participation and a gradual decline in unemployment indicating stronger worker absorption across sectors.
"Employment conditions remained steady during the quarter, with rising labour force participation alongside a gradual moderation in unemployment, indicating continued worker absorption across sectors," the report said.
High-frequency indicators also suggest improving hiring trends, particularly in emerging service segments. The review noted that white-collar hiring began in 2026 on a stable footing, supported by growth in sectors such as BPO/ITES, hospitality, insurance and healthcare.
The Budget's employment push spans labour-intensive manufacturing, agriculture-linked activities and services sectors such as tourism, healthcare and the care economy, while also focusing on strengthening skill pathways and aligning training with industry demand.
The Finance Ministry review said these measures aim to deepen labour market participation and ensure that economic growth remains employment-oriented and inclusive.