What the Government's New Labour Survey Reveals About Hyderabad?

By Aman Somkunwar

Hyderabad's workers earn more than those in most of India's large cities. According to the National Statistical Office's newly released Labour Market Dynamics in Million-plus Cities report, regular salaried employees in Hyderabad earn an average monthly wage of ?31,153 compared to ?28,808 across million-plus cities. The finding offers an important glimpse into how one of India's fastest-growing urban economies is translating growth into employment and incomes.

Released on 29 June 2026, the National Statistical Office's (NSO) Labour Market Dynamics in Million-plus Cities report provides the first comprehensive city-level profile of labour markets across India's 46 million-plus cities, including Greater Hyderabad. Drawing on data from the Periodic Labour Force Survey (PLFS), it examines indicators such as employment, earnings, labour force participation, unemployment and the sectoral composition of the workforce, offering a detailed picture of how people work and earn their livelihoods in India's largest urban centres.

Beyond higher earnings, the survey also shows that Hyderabad has become a city of salaried workers. Around 62 per cent of employed persons are in regular wage or salaried jobs, compared with 59 per cent across India's million-plus cities. These are workers who receive a fixed salary from an employer, including those employed in IT firms, schools, hospitals, banks and other private or public organisations. In contrast, 27 per cent are self-employed, such as shopkeepers, street vendors and small business owners, while only 10 per cent work as casual labourers, whose employment is typically temporary or daily-wage based. This employment profile suggests that Hyderabad has a relatively more formal labour market than many other large Indian cities.

The predominance of salaried employment is closely linked to Hyderabad's service-driven economy. Nearly 73 per cent of the workforce is employed in the service sector, including information technology, healthcare, education, banking, retail, hospitality and other business services. Another 26 per cent work in the secondary sector, comprising manufacturing and construction, while less than one per cent remain engaged in agriculture. These figures highlight the city's transformation into a predominantly urban, service-led economy, where formal employment opportunities have expanded alongside rapid economic growth.

However, the survey also reveals a persistent gender gap in Hyderabad's labour market. While 78 per cent of men participate in the labour force, only 33 per cent of women do so. A similar disparity is reflected in employment itself: the Worker Population Ratio stands at 73 per cent for men but only 30 per cent for women. For a city that prides itself on being a modern knowledge and technology hub, these figures suggest that the benefits of economic growth are not being shared equally across its workforce.

The survey does not explain why this gap persists, but the reasons are likely to be multifaceted. Women's participation in the labour market is often shaped by social norms, unpaid care responsibilities, workplace accessibility, commuting constraints and safety concerns. While Hyderabad has emerged as a major centre for technology and services, the findings suggest that economic transformation alone is not sufficient to ensure equal access to employment opportunities for women.

More broadly, the report marks an important shift in how urban labour markets can be understood. Cities are often evaluated through indicators such as investment inflows, infrastructure projects, real estate growth or the number of companies they attract. While these metrics capture economic expansion, they reveal little about how that growth is experienced by ordinary citizens. Labour market indicators, by contrast, offer a more people-centred perspective. They show whether economic growth is generating employment, the kinds of jobs being created, how much workers earn, and whether opportunities are distributed equitably across different sections of society. By providing comparable city-level data for the first time, the survey enables policymakers, researchers and citizens to move beyond broad narratives of urban success and assess whether economic transformation is translating into meaningful improvements in people's livelihoods.