India’s largest urban centres are witnessing a significant transformation in their labour markets, with service-sector employment and formal salaried jobs driving workforce growth, according to the National Statistics Office’s (NSO) latest report, Labour Market Dynamics in Million-plus Cities, based on the Periodic Labour Force Survey (PLFS) 2025.

The report marks the first official city-level employment estimates for India’s 46 million-plus cities, including Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Pune and Ahmedabad. Released by the Ministry of Statistics and Programme Implementation, the data is expected to support evidence-based policymaking as urban centres continue to power the country’s economic growth.

One of the report’s key findings is the sharp shift from agriculture to the service sector. Agriculture now accounts for just 1.6% of employment in million-plus cities, compared to 10.1% in other urban areas. Meanwhile, 13.6% of workers are employed in transport, storage and communication services, while 31.5% work in finance, real estate, professional services, education, healthcare and public administration. The trend reflects India's transition towards knowledge-based industries, logistics and urban consumer-driven economic activity.

The report also highlights the growing prevalence of formal employment in metropolitan cities. Regular salaried jobs account for 58.5% of total employment in million-plus cities, significantly higher than 42.9% in other urban centres. Organised employers provide 24.3% of all jobs in these cities, while the share of casual labour is less than half that recorded in smaller urban areas, indicating greater job stability, social security benefits and career opportunities.

Higher wages are another defining feature of metropolitan labour markets. According to the NSO, self-employed workers in million-plus cities earn around 34% more than the urban average, while regular salaried employees receive nearly 10% higher earnings, reflecting stronger demand for skilled professionals and greater economic activity.

The findings underscore the growing role of India’s largest cities as engines of formal employment and high-value service-sector growth. However, the report also points to the need for sustained investment in tier-II and tier-III cities to ensure balanced regional development and expand quality employment opportunities beyond metropolitan centres.