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The state of affairs must be checked out objectively, for which official statistics are helpful. Beneath the Periodic Labour Power Survey (PLFS), the most recent State-level indicators on employment are the April-June 2025 quarterly report and the July 2023-June 2024 annual report, with insights on Bihar.
Trying past the unemployment fee
The quarterly and annual releases cite Bihar’s unemployment fee as 5.2% and three%, respectively, whereas it was 5.4% and three.2%, respectively, on the nationwide stage for ages 15 and above. To the informal reader, Bihar’s employment/unemployment image appears first rate to good. Nonetheless, such a superficial studying is deceptive. To actually perceive employment situations, one should perceive three interrelated indicators within the PLFS — Employee Inhabitants Ratio (WPR) or share of the inhabitants that’s employed; Labour Power Participation Charge (LFPR) or the share of the inhabitants both employed or actively in search of work, and Unemployment Charge (UR) or share of the labour drive that’s unemployed and actively searching for work.
Trying on the UR in isolation conceals the true image. The identical quarterly and nationwide releases cite the WPR for Bihar at 46.2% and 51.6%, respectively whereas the nationwide WPR is 52% and 58.2%, respectively, which reveals that the share of these employed within the working age inhabitants is far decrease in Bihar.
On checking the WPR and LFPR within the desk, Bihar has low WPR, low LFPR, and subsequently low UR. A extra holistic interpretation is grim as a result of many in Bihar aren’t working (low WPR), and lots of aren’t even searching for work (low LFPR). Since these not working aren’t even searching for work, the unemployment fee seems to be deceptively low. It is a traditional manifestation of the “Discouraged Employee Impact” whereby individuals with out jobs lose hope of discovering employment alternatives and utterly withdraw from the labour drive
A comparability of Bihar with comparable/comparable States strengthens the inference and reveals how dangerous employment situations are in Bihar. However it is very important evaluate Bihar towards States of the same dimension and financial background. On this, two elements are essential in figuring out similarity: inhabitants and per capita earnings.
For a significant comparability, Bihar was grouped with 9 giant, low-income States (inhabitants above three crore as within the Registrar Common of India’s 2024 projections, per capita earnings beneath nationwide common for 2025-25).
There are 9 States that fall below this standards, that are Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
When Bihar’s indicators are in contrast with the chosen group of States, the outcomes are alarming. Bihar ranks the bottom throughout WPR and LFPR. Uttar Pradesh fares marginally higher however nonetheless hovers close to the underside.
The quarterly PLFS (April-June 2025) reveals that amongst youth (15-29 years), the image is even bleaker: solely 28 out of 100 are working. Bihar is on the backside by way of youth work participation and youth labour drive participation. For a technology that needs to be constructing its future, the doorways of employment stay closed.
Since quarterly figures could also be influenced by seasonal fluctuations in employment, it is very important take a look at the annual PLFS estimates as nicely. Quarterly estimates are based mostly on Present Weekly Standing, during which the reference interval used to find out an individual’s employment standing is simply seven days.
The annual report additionally presents Regular Standing: principal+subsidiary standing, or figures which give a extra complete and secure image of employment over a long run, minimising the distortions attributable to short-term variations reminiscent of festivals, sickness or crop cycles. It additionally captures individuals’s subsidiary work. Nonetheless, these annual figures too reinforce the identical conclusion. For these aged 15 years and above, Bihar’s WPR stands at 51.6% and LFPR at 53.2%, that are abysmally low. Solely Bihar and Uttar Pradesh fall beneath 60% in WPR.
The state of affairs is grave for girls. Bihar’s feminine WPR is just 30.1%, or out of 100 ladies aged 15 years and above, solely 30 are working. The state of affairs is much more distressing for younger ladies. Within the 15-29 age group, Bihar’s feminine work participation fee stands at 31.2%, whereas neighbouring Jharkhand information 49.3%, which is almost 20 share factors greater.
The standard of jobs in Bihar is equally troubling. Solely 8.7% of staff are engaged in common wage/salaried jobs, the bottom amongst comparable States. Bihar is the one State — not simply on this group but in addition in your entire nation — with a single digit proportion. On the identical time, 23.8% of staff are employed as informal labourers, the very best share after Odisha throughout these States. This means an absence of safe and formal employment alternatives.
Such outcomes are in stark distinction to the claims of the Nationwide Democratic Alliance, which regularly highlights the formalisation of the financial system as one in every of its achievements. In Bihar, nevertheless, the labour market stays overwhelmingly casual, insecure and poorly remunerated.
Migration and the lacking numbers
A caveat have to be saved in thoughts whereas deciphering Bihar’s employment indicators. The PLFS counts solely these people residing within the State throughout the reference interval. The employment image may have been higher had the PLFS been capturing migration as nicely.
The grim labour market outcomes can’t be separated from Bihar’s governance file. Chief Minister Nitish Kumar’s authorities has failed to enhance literacy and human capital formation. The identical PLFS (annual) reveals Bihar’s literacy fee at solely 73.2% for the 5-plus age group, which is way beneath the nationwide common. With out important enhancements in schooling and abilities, the State can’t hope to generate significant employment alternatives.
Regardless of frequent bulletins, funding summits and guarantees of business revival, little has materialised on the bottom. Mr. Kumar’s political manoeuvres and shifting alliances have yielded little tangible advantages for Bihar’s financial system. The State has underperformed be it schooling, job creation, industrialisation and formalisation.
The employment disaster in Bihar isn’t a matter of notion however one in every of onerous proof. PLFS information persistently reveal that Bihar lags in all key labour market indicators. Mr. Kumar’s tenure of almost 20 years because the Chief Minister has failed to deal with these structural weaknesses. For a State with such a younger inhabitants, this represents not only a missed alternative however a possible social disaster within the making.
Bihar urgently wants a complete technique to revive schooling, create formal jobs, and stem the outmigration of its workforce. Something in need of this dangers perpetuating the cycle of poverty, migration, and underdevelopment that has lengthy haunted the State.
Jignesh Mevani is a Member of the Legislative Meeting in Gujarat and Convener on the Rashtriya Dalit Adhikar Manch
Printed – October 11, 2025 12:16 am IST
