The Economic Survey 2025-26 states that India has seen improvements in the labour market, which is supported by a combination of regulatory reforms, expanded social protection policies and more.
The document read, “Recent labour market indicators suggest improving employment conditions supported by ongoing structural reforms. Monthly PLFS data show a broadly steady labour market with seasonal variations.”
According to the survey, monthly PLFS data show a broadly steady labour market with seasonal variations. “The quarterly averages of monthly estimates point to a decline in the unemployment rate and a stabilising labour force participation rate,” the document reads.
However, the key focus was definitely the labour code reforms. The survey states that the consolidation of 29 central laws into four Labour Codes aims to simplify compliance, enhance labour market flexibility, and extend security to a broader section of the workforce, while maintaining safeguards for wages, occupational safety, and social security.
“Importantly, the recognition of the gig and platform workers, with provisions to enable their registration and inclusion within social security schemes, marks a step towards formalising non-traditional forms of employment,” the document reads.
Complementing these reforms, government-led skilling initiatives have focused on enhancing employability through industry-aligned training. According to the finance ministry, these reforms aim to strengthen labour market resilience, improve job quality, and better align workforce capabilities with the requirements of a rapidly changing economy.
