A new MoSPI report on million-plus cities shows Hyderabad performing better than the national urban average on labour participation, salaried employment and earnings, even as women continue to remain underrepresented in the workforce
Hyderabad: These are among the key findings of the Ministry of Statistics and Programme Implementation’s latest report on labour and employment indicators for million-plus cities, based on data from the Periodic Labour Force Survey (PLFS).
The report estimates Hyderabad’s Labour Force Participation Rate (LFPR) under the usual status at 55.4 per cent, significantly higher than the average of 51.3 per cent across India’s million-plus cities and above the urban national average of 50.8 per cent. The figures indicate that a larger proportion of the city’s working-age population is either employed or actively seeking work compared to many other major urban centres.
The city’s performance remains consistent under the Current Weekly Status measure as well, where Hyderabad records an LFPR of 55.5 per cent against the million-plus city average of 52.4 per cent.
Much of Hyderabad’s employment landscape is shaped by its strong services sector, reflecting the city’s growth as a technology, pharmaceutical, financial services and business process outsourcing hub. According to the report, nearly 58 per cent of workers are employed in service-sector activities, making services the dominant source of urban employment.
The nature of employment also distinguishes Hyderabad from many other urban centres. A majority of workers are engaged in regular wage or salaried employment rather than casual labour. Around 62.1 per cent of male workers and 59.3 per cent of female workers fall under the regular salaried category, highlighting the city's relatively formal employment structure.
Income levels among self-employed workers also reflect Hyderabad’s relatively strong urban economy. The report estimates average monthly earnings of self-employed workers at Rs 30,075. Male self-employed workers earn an average of Rs 33,420 per month, while women earn Rs 15,558, pointing to a substantial gender earnings gap that mirrors broader national trends.
Workers in Hyderabad also put in longer hours than many of their counterparts elsewhere. The average work week in the city stands at around 49 hours, above the average recorded across million-plus cities. The longer working hours reflect the demands of formal sector jobs, particularly in services and urban industries.
Despite these encouraging indicators, women continue to participate in the labour market at much lower levels than men. While the male Labour Force Participation Rate stands at 77.6 per cent, the corresponding figure for women is only 32.5 per cent. The data highlights that although Hyderabad performs well overall, increasing women's participation remains one of the city’s biggest opportunities for future economic growth.
Economists have long argued that improving female labour force participation can significantly boost household incomes, productivity and economic output. For rapidly expanding cities such as Hyderabad, bridging this gap could become increasingly important as demand for skilled workers continues to rise.
The report also reflects Hyderabad’s transition into a predominantly knowledge and service-based economy. Regular salaried employment, relatively higher labour participation and better earnings collectively indicate a labour market that is more formal than those of many comparable Indian cities.
Beyond Hyderabad, the MoSPI report offers one of the most detailed snapshots yet of employment patterns across India’s million-plus cities. It examines labour force participation, unemployment, industry-wise employment, earnings, working hours, education levels and workforce composition, providing policymakers with city-specific insights instead of relying solely on national averages. The report underlines that while India’s major urban centres continue to drive employment growth, improving women's workforce participation, reducing employment disparities and creating quality jobs remain central challenges for sustaining inclusive urban development.
