The unemployment rate in India's million-plus cities stood at 4.9% in 2025, compared with 4.7% in other urban areas, even though these larger cities offer better-quality jobs and higher incomes, according to an NSO report.
The numbers suggest that India's 46 million-plus cities have not been able to generate robust employment opportunities during the period.The report said that 58.5% of workers in million-plus cities receive regular salaries or wages, compared with 42.9% in other urban areas. Moreover, only 6.3% of workers are engaged in casual labour in bigger cities, compared with 14.4% in other urban areas.
Meanwhile, workers engaged in transport, storage and communication accounted for 13.6% of employment in million-plus cities, against 9.2% in smaller cities. However, the data do not indicate whether these jobs are contractual or permanent.Labour force participation has also improved in bigger cities. The labour force participation rate (LFPR) rose to 52.4% in 2025 from 47.7% in 2017-18, slightly higher than 52.1% recorded in other urban areas in 2025.Earnings in million-plus cities remained higher than those in urban India across all employment categories. Average earnings stood at Rs 30,858 during the last 30 days for self-employed workers, Rs 28,808 during the last month for regular salaried employees and Rs 624 per day for casual labourers, compared with Rs 23,013, Rs 26,258 and Rs 550, respectively, in urban India.Among males, 53.5% reported wanting to continue their studies as the main reason for not being in the labour force. Among females, 68.7% cited child care or personal commitments related to homemaking as the primary reason.On the enterprise side, the report provides further insights into the share of establishments and workers in these 46 cities. The million-plus cities account for about 13% of all establishments, 16% of workers and 21% of the Gross Value Added (GVA) of the unincorporated non-agricultural sector.
Kolkata, Surat and Greater Hyderabad emerged as the leading centres of entrepreneurial activity, jointly accounting for more than 22% of the total estimated establishments across all million-plus cities. Women entrepreneurs also play an important role in the growth of the unincorporated sector.
In 32 of the 46 cities, more than 20% of establishments are run by women proprietors.The GVA per worker in these cities stood at Rs 2,11,433, compared with Rs 1,80,177 in other urban areas. GVA per establishment was Rs 4,17,012, against Rs 3,23,945 in other urban areas, while average emoluments stood at Rs 1,69,130, compared with Rs 1,49,536.
