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Rung 01 — Below middle school

53.97 million people aged 21–34. 9.08% hold a regular salaried job, of which 1.66% of the rung is formal work.

Self-contained: everything below is derived from PLFS CY2025 for this rung alone. The ladder-wide comparison is in ../README.md.


Filter Value
release_id calendar_2025
visit V1 — usual principal activity is collected only at the first visit
gedu_lvl 0106: not literate, literate without formal schooling, below primary, primary
age 21–34

Sample: 34,503 people across 14,056 first-stage units, representing 53.97 million.

This is the largest single rung on the ladder by sample and the second largest by population. It holds everyone who did not complete middle school, from the never-schooled to those who finished primary. Nobody here holds any technical qualification — tedu_lvl is 01 for all 34,503.

Why the sub-groups are merged. Not-literate (20.54m), below-primary (6.81m) and primary (26.38m) are reported together because their labour-market outcomes are indistinguishable at this resolution and splitting them would imply a precision the wage cells cannot support. Anyone needing the split can rerun extract.sql with the CASE expanded.


Share People
Formal work — salaried, paid, with a contract or social security 1.66% 898k
Informal wage work — salaried without either, plus casual labour 31.34% 16.91m
Self-employed, earning 15.55% 8.39m
Studying 0.01% 3,409
Unemployed, seeking 0.50% 267k
Domestic duties 35.25% 19.02m

Two numbers define this rung. Informal wage work is nineteen times formal work. And unemployment is 0.50% — not because people are working, but because at this education level almost nobody can afford to search. Being out of work here means domestic duties or informal labour, not a job queue. Any headline “unemployment rate” for this group is close to meaningless.

Share of rung Formal work Domestic duties Median wage People
Female 60.0% 0.71% 58.28% ₹8,000 32.39m
Male 40.0% 3.09% 0.68% ₹14,000 21.57m

Six in ten people on this rung are women, and 58% of them are in domestic duties against 0.68% of men. The rung’s 35.25% domestic-duties figure is almost entirely a female figure. A man here is 4.4 times more likely to hold a formal job than a woman, and the women who do work formally earn a median of ₹8,000 a month against men’s ₹14,000.

Reading the rung’s headline 1.66% without this split describes a labour market that does not exist: it is 0.71% for the majority of the people in it.

Share Formal work Median wage People
Rural 77.0% 0.95% ₹12,000 41.55m
Urban 23.0% 4.04% ₹13,500 12.42m

Formal work is four times more likely in a town, but from a base so low that it remains rare everywhere.


What formal work pays, and whether it grows

Section titled “What formal work pays, and whether it grows”

Monthly wage among the 1.66% in formal work. Measured on tenure — time in the present activity status — which is available for this rung and preferable to age because it measures time in work directly.

Tenure n p25 Median p75 p90 ≥₹10k ≥₹15k ≥₹20k
Under 1 year 37 ₹9,000 ₹12,000 ₹16,000 ₹20,000 61.4% 27.3% 6.2%
1 to 3 years 118 ₹10,000 ₹13,500 ₹16,000 ₹20,000 79.5% 43.9% 5.6%
Over 3 years 454 ₹9,000 ₹12,000 ₹15,500 ₹20,240 69.2% 38.0% 11.8%

The median does not move — ₹12,000 at entry, ₹12,000 after three years or more — but this table is not the evidence for that.

The three tenure cells here are not entrants versus veterans. Their mean ages are 27.4, 27.1 and 29.6: 19 of the 37 people in the “under 1 year” cell are aged 27–34, job-changers with a decade of work behind them, and they earn a ₹16,000 median. Restrict to ages 21–26 and the same rung reads ₹10,000 → ₹12,300, a 1.23× rise in line with middle school’s 1.17×. The flat 1.00× is an age-composition artefact of a 37-person cell, not a measurement of stalled wages.

The claim survives on the lifecycle evidence instead — median ₹12,200 at 21–23, ₹12,000 at 30, ₹12,000 at 40, on cells of 4,872 / 8,085 / 18,868. That is the row to cite.

The ₹6 lakh threshold used elsewhere in this analysis is meaningless here — ₹50,000 a month is cleared by 2 people out of 34,503. The thresholds that carry information at this rung are ₹10,000 and ₹15,000, which is why they are the columns above.

Top occupations among those in formal work:

Occupation n Share Median wage
Manufacturing labourers 130 21.7% ₹13,240
Agricultural, forestry and fishery labourers 24 7.7% ₹6,800
Domestic, hotel and office cleaners 51 7.3% ₹10,000
Refuse workers 45 6.9% ₹11,000
Market gardeners and crop growers 33 5.5% ₹6,500
Heavy truck and bus drivers 22 4.8% ₹15,000

Shares are of all formally employed on the rung; occupations with fewer than 15 people are suppressed, so the column sums to 54% rather than 100%.

“Formal” here means a contract or a provident fund contribution, not a desk. A fifth of it is factory labour and another seventh is cleaning and refuse work. The best-paid common occupation is driving.


Three life stages. This is a synthetic cohort, not a projection — the age-40 column describes people who are 40 today, not what a 21-year-old on this rung will experience.

At entry (21–23) Age 30 Age 40
Sample n 4,872 8,085 18,868
Population 7.18m 13.00m 22.58m
— of whom in formal work 52 163 364
In formal work 0.84% 1.70% 2.17%
Mean wage ₹13,088 ₹12,704 ₹13,904
Median wage ₹12,200 ₹12,000 ₹12,000

Twenty years of working life move the mean wage by 6% and the median not at all. Formal employment roughly doubles, from 0.84% to 2.17% — which is to say it goes from almost never to almost never.

“At entry” is ages 21–23 rather than the age this group left school, which was around 13. There is no graduation moment to anchor to, and PLFS at 13–15 is child-labour territory rather than labour-market entry. 21–23 is the earliest age at which this rung’s outcomes can be read as adult labour-market outcomes, and it is used for every school rung so they are comparable.


The same rung at three points in a working life

Section titled “The same rung at three points in a working life”
Life stage Regular salaried Of which formal People
Entry 8.7% 0.8% 7.18m
Age 30 9.5% 1.7% 13.00m
Age 40 9.0% 2.2% 22.58m

Regular salaried is a salaried job of any kind (pas='31'). Formal is the subset that is actually paid and carries a written contract or social security. The difference between the two columns is the informal salaried workforce.

These are three different cohorts, not one cohort ageing. Today’s 40-year-olds finished a different school system in a different labour market from this year’s entrants, so this table shows where each age group stands now. It does not say what today’s entrant will earn at 40.

Entry uses each rung’s own window — three years from that course’s normal completion age; age 30 is ages 29–31 and age 40 is ages 39–41, three-year bands for sample.

Job function among those in formal work, rolled up from NCO 2015 three-digit occupation groups by build_job_function.py. NCO orders by skill level before function, so a raw occupation table splits one function across three divisions — software work sits in 251/252, 351/352 and 133. Shares sum to 100; nothing is suppressed.

Function Share People Public sector Median wage
Skilled trades & production 44.03% 395k 5.9% ₹14,000
Hospitality, personal & care services 21.39% 192k 50.7% ₹10,000
Agriculture, forestry & fishing 14.86% 133k 7.8% ₹6,500
Transport & logistics 12.53% 112k 14.1% ₹15,000
Sales & marketing 2.10% 19k 0.0% ₹12,000
Protective services & armed forces 1.87% 17k 49.7% ₹11,000
Clerical & office support 0.75% 6,723 35.9% ₹15,000
Health & medical 0.57% 5,138 100.0% ₹8,500
Law, public administration & policy 0.56% 4,990 100.0% ₹12,580
Finance & accounting 0.55% 4,954 0.0% ₹9,000
Arts, media, culture & social 0.43% 3,878 18.2% ₹10,000
Management & business operations 0.23% 2,066 0.0% ₹18,000
Engineering, science & technical 0.13% 1,162 0.0% ₹25,300
Cut n
The rung, ages 21–34 34,503
— in formal work 609
Formal, tenure under 1 year 37
Formal, tenure over 3 years 454
At age 40, in formal work 364
Earning ≥₹50,000 a month 2

The binding constraint is the entry-tenure cell at 37 people. The claim that the median does not grow rests on comparing 37 people against 454 of the 609 in formal work, and should be read as directional. The claim that formal work is rare — 1.66% on 34,503 people — is among the most precisely measured numbers in this whole analysis.

The wage figures describe 1.66% of the rung. They say what the rare formal job pays, not what this population earns. Most of these 54 million people are in informal wage work or self-employment, where PLFS records no earnings figure comparable to ern_reg.

“Below middle school” is not one group. It merges the never-schooled with primary completers. Their outcomes look alike here, but that is partly a limit of what a 609-person formal-work cell can resolve.

No causation. People who left school before middle school differ from those who did not in ways this cannot see.


Provenance: assumptions governing this note are numbered in ../ASSUMPTIONS.md; the queries behind every figure are in ../QUERIES.md; every claim’s confidence grade, and the seven claims this analysis has retracted, are in ../FINDINGS.md. Check a number against FINDINGS before quoting it.