Lanka’s employed population crosses 8 Mn in 2025

Sri Lanka’s employed population surpassed eight million in 2025, reaching 8,079,040, while the country’s unemployment rate declined to 3.9% from 4.4% the previous year, according to the latest labour force survey released by the Department of Census and Statistics (DCS).

The report shows that males accounted for 5,299,777 of the employed population, while 2,779,262 were females. The overall employment rate was recorded at 96.1%.

The estimated population aged 15 years and above stood at 17,034,109 in 2025, of whom 8,408,251 were in the labour force, resulting in a labour force participation rate of 49.4%.

However, a substantial gender gap continued to characterise participation in the labour market. The male labour force participation rate was 69.1%, compared with only 32.4% among females.

Of the 8,625,859 people outside the labour force, 6,185,730 were women, accounting for 71.7% of the economically inactive population.

Household work was by far the main reason cited by women for being outside the labour force, accounting for 58.1% of economically inactive females.

Another 17.8% were engaged in education, while 16% were retired or elderly and 6.6% were outside the labour force due to illness or disability.

The number of unemployed persons fell to 329,211 in 2025, comprising 149,931 males and 179,280 females.

The female unemployment rate stood at 6.1%, more than twice the male rate of 2.8%.

Nevertheless, female unemployment also declined from 7.1% in 2024 to 6.1% in 2025, contributing to the reduction in the overall unemployment rate from 4.4% to 3.9%.

Youth unemployment remained a significant feature of the labour market, with 19.5% of people aged 15 to 24 unemployed.

The youth unemployment rate was 16.5% among males and 24.5% among females. Female unemployment among those aged 25 to 29 was also relatively high at 17.1%.

The services sector remained the largest source of employment in 2025, accounting for 49.8% of total employment, or 4,026,037 workers.

The industrial sector accounted for 26.2% of employment, while agriculture accounted for 23.9%.

The share of employment in services increased from 48.5% in 2024 to 49.8% in 2025. In contrast, agriculture’s share fell from 26% to 23.9% during the same period.

The figures indicate a continued shift in the structure of employment towards the services sector, while the relative share of agricultural employment declined.

The estimated average gross monthly salary of a monthly-paid employee in 2025 was Rs. 65,325, according to the DCS.

Male employees earned an average gross monthly salary of Rs. 70,942, compared with Rs. 57,867 for female employees.

The earnings gap was also evident among daily-paid workers. Their average monthly earnings were estimated at Rs. 41,290 for males and Rs. 22,640 for females.

Meanwhile, 439,839 employed persons, or 5.4% of the total employed population, held a second job in addition to their main occupation.

When both primary and secondary employment are taken into account, the total number of jobs in the country was estimated at 8,518,878 in 2025.

The DCS report also provides data on literacy and digital access.

The literacy rate among the population aged 10 years and above was 93.3% in 2025. The rate was highest in urban areas at 96.3%, followed by rural areas at 93.2%, while the estate sector recorded 82.7%.

Computer literacy increased to 39.2% in 2025 from 35.9% in 2024.

Male computer literacy was recorded at 40.5%, compared with 38% among females.

Digital literacy was substantially higher, at 72%, while 62.4% of the population aged between five and 69 had used the internet during 2025.

Internet usage has continued to rise in recent years, increasing from 51.2% in 2023 to 54.6% in 2024 and 62.4% in 2025.

The latest figures therefore show a labour market with lower overall unemployment and a growing services sector, alongside persistent disparities in female labour force participation, female earnings and youth employment.