India Unemployment Rate Falls to 5% in August as Rural Jobs Improve

India’s unemployment rate for people aged 15 years and above declined marginally to 5% in August from 5.1% in July, according to the latest Periodic Labour Force Survey data. The improvement was driven largely by rural areas, where unemployment fell to 4.1% from 4.5%, the lowest level recorded since January 2026.

Urban unemployment, however, edged up to 6.8% in August from 6.7% in July. Overall unemployment was broadly unchanged from August 2025, while rural unemployment improved from 4.3% a year earlier.

Labour force participation also increased, with the LFPR rising to 55.6% from 55.4% in July. Rural participation rose to 58.2%, while the urban rate remained at 50.4%. Female LFPR increased to 34.8%, supported by a rise in rural female participation to 39.4%.

Employment indicators also showed improvement. The Worker Population Ratio increased to 52.8% in August from 52.5% in July. Rural WPR rose to 55.8%, while the urban figure remained unchanged at 47%.

Male unemployment also declined, with the overall rate falling to 4.9%. Rural male unemployment stood at 4.3%, while urban male unemployment increased slightly to 6.1%. Female unemployment fell to 5.1%, with rural female unemployment declining to 3.9%.

The August estimates were based on data collected from 3,70,160 people nationwide, including 2,11,353 respondents from rural areas and 1,58,807 from urban areas.

Published: 9h ago

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