India Unemployment Rate Falls to 5% in August as Rural Jobs Improve
India’s unemployment rate eased to 5% in August, with rural unemployment falling to 4.1% and labour force participation showing further improvement.
India’s unemployment rate for people aged 15 years and above eased to 5% in August from 5.1% in July, according to the latest Periodic Labour Force Survey (PLFS) data. The improvement was largely driven by rural areas, where unemployment declined to 4.1% from 4.5% in July, the lowest level recorded since January 2026.
Urban unemployment, however, increased marginally to 6.8% from 6.7%. Compared with August 2025, the overall unemployment rate remained broadly unchanged, while rural unemployment fell from 4.3% to 4.1%.
Labour market participation also improved. The Labour Force Participation Rate (LFPR) rose to 55.6% in August from 55.4% in July. Rural LFPR increased to 58.2%, while the urban rate remained at 50.4%.
Women’s participation showed further improvement, with overall female LFPR rising to 34.8% from 34.4%. Rural female LFPR increased to 39.4%, while urban participation remained around 25.4%.
The Worker Population Ratio (WPR), which measures the share of the population that is employed, also increased to 52.8% from 52.5% in July. Rural WPR rose to 55.8%, while the urban figure stayed at 47%.
The August estimates were based on responses from 3,70,160 people across India, including 2,11,353 respondents in rural areas and 1,58,807 in urban areas.
