Unemployment Rate Declines in July-September 2025

Unemployment Rate Declines in July-September 2025
  • Context: 

  • The Ministry of Statistics and Programme Implementation (MoSPI) has released the Periodic Labour Force Survey (PLFS) report for the second quarter of 2025-26 (July-September) 

  • This is the second quarterly report under the revamped methodology that provides estimates for both rural and urban India.  

  • The data is based on the Current Weekly Status (CWS) approach.  

  • Key Findings on Unemployment: 

  • The all-India Unemployment Rate (UR) for persons aged 15 years and above declined to 5.2 per cent in July-September 2025 (down from 5.4 per cent in the previous quarter) 

  • Rural vs. Urban:  

  • The trend was divergent. 

  • Rural UR saw a decline to 4.4% from 4.8% 

  • Urban UR experienced an uptick of 10 basis points to 6.9%.  

  • Urban female unemployment rose to 9.0% 

  • Youth Unemployment:  

  • The rate for those aged 15-29 years edged up to 14.8%.  

  • The rise was noteworthy in urban areas, where it hit 18.4%, with young urban women at 25.3% 

  • Employment Trends: 

  • In urban areas, the share of salaried jobs rose to 49.8%.  

  • This included a rise for both males (to 48%) and females (to 55.5%) 

  • In rural areas, salaried jobs, which are a smaller portion of employment, declined to 15% 

  • Sectoral Employment:  

  • In rural areas, the share of employment in the agriculture sector rose significantly from 53.5% to 57.7%. 

  • This is attributed to Kharif agricultural operations 

  • Female LFPR:  

  • The overall Female Labour Force Participation Rate (LFPR) showed an upward momentum, increasing to 33.7%.