India’s labour market continues to improve, with unemployment rates declining and more women entering the workforce, according to the latest Periodic Labour Force Survey (PLFS) released for August 2025. Unemployment rate hit a new low in five months, as per the data released by the Ministry of Statistics and Programme Implementation on Monday.
The overall unemployment rate for individuals aged 15 and above has steadily decreased for the second consecutive month, dropping to 5.1 per cent in August 2025 from 5.6 per cent in June. Male unemployment fell to a five-month low of 5.0 per cent, driven by decreases in both urban (6.6 per cent to 5.9 per cent) and rural areas (4.5 per cent). Rural unemployment also saw a consistent decline over three months, falling from 5.1 per cent in May to 4.3 per cent in August, signalling strengthening employment opportunities across the country.
Female Workforce Participation Sees Sustained Growth
The female Worker Population Ratio (WPR) rose from 30.2 per cent in June to 32.0 per cent in August, reflecting a positive trend over two consecutive months. Rural female WPR increased notably from 33.6 per cent to 35.9 per cent, while urban female WPR improved from 22.9 per cent to 23.8 per cent. This steady rise in female participation marks an important step toward gender balance in India’s workforce.
Overall Labour Force Participation Rate Shows Improvement
India’s overall labour force participation rate (LFPR) rose to 55 per cent in August 2025, up from 54.2 per cent in June, indicating a broader engagement of working-age individuals in the labour market. Female LFPR also climbed from 32.0 per cent to 33.7 per cent, supported by gains in both rural (35.2 per cent to 37.4 per cent) and urban (25.2 per cent to 26.1 per cent) sectors. These improvements point to a gradually strengthening labour market landscape.