Female Workforce Participation Rises to 37% as India’s Unemployment Falls to 5.2%: PLFS Survey 2025

India’s labour market continued its upward momentum in the July–September 2025 quarter, with fresh data from the Periodic Labour Force Survey (PLFS) pointing to stronger female workforce participation and a nationwide decline in unemployment. The findings, released by the Ministry of Statistics and Programme Implementation (MoSPI), underline a steady strengthening of labour indicators as the country moves further away from post-pandemic disruptions.

Female Workforce Participation Edges Up

Female Labour Force Participation Rate (LFPR) rose to 33.7%, a modest but consistent increase over the previous quarter’s 33.4%. The rise was primarily driven by rural India, where female LFPR climbed from 37.0% to 37.5%. The data reflects gradual improvements in gender inclusion within the country’s employment landscape, particularly in rural labour markets where women are increasingly contributing to economic activity.

Employment Indicators Strengthen Further

The Worker Population Ratio (WPR), which measures the proportion of the working-age population currently employed, increased from 52.0% to 52.2%. Again, the improvement was linked to rising female employment, especially in rural regions.

The Unemployment Rate (UR) for individuals aged 15 years and above declined to 5.2%, compared to 5.4% in the previous quarter. Rural unemployment showed the strongest improvement, dipping from 4.8% to 4.4%. Urban unemployment, however, saw marginal increases, with male unemployment inching up from 6.1% to 6.2% and female unemployment rising from 8.9% to 9.0%.

Rural and Urban Labour Trends Diverge

Labour patterns continued to show clear rural–urban differences. Rural job gains were largely attributed to the Kharif agricultural season, which increased the share of workers in agriculture from 53.5% to 57.7%. Rural self-employment also saw a notable rise, jumping from 60.7% to 62.8%, signaling a shift toward independent and agriculture-linked activities.

In urban regions, service-led employment remained dominant. The tertiary sector—including education, trade, healthcare, and modern services—engaged 62.0% of the workforce, up marginally from 61.7%. Regular wage and salaried employment in cities also showed slight improvement, rising from 49.4% to 49.8%.

56 Crore Indians Employed Nationwide

The survey estimated that 56.2 crore individuals aged 15 and above were employed during the quarter—39.6 crore men and 16.6 crore women. With data collected from 5.6 lakh respondents across the country, the PLFS provides one of the most detailed snapshots of India’s labour landscape.

The continued rise in female participation and the reduction in unemployment signal a maturing labour market supported by rural activity, agricultural cycles, and stable urban services. As policymakers refine job-generation strategies and gender-focused initiatives, the latest PLFS figures offer a clear indication of India’s ongoing shift toward a more inclusive and resilient employment ecosystem.