India's Job Market Brightens! Women and Rural Workers at Forefront as Unemployment Falls to 5.1% in August

India’s unemployment rate fell to 5.1% in August 2025, marking a steady decline for the second month. Women’s workforce participation and rural employment improved, while urban male unemployment also dropped, according to PLFS data.

India’s overall unemployment rate dropped to 5.1 per cent in August 2025, marking the second consecutive month of decline, according to the Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. The rate had fallen from 5.6 per cent in June to 5.2 per cent in July, before reaching 5.1 per cent in August, signaling steady improvement in the country’s job market.

Men See Decline in Unemployment

Unemployment among men aged 15 years and above declined to 5.0% in August, the lowest since April 2025. Urban male unemployment fell from 6.6% in July to 5.9% in August, while rural male unemployment decreased to 4.5%.

The rural unemployment rate showed a steady decline over three months, dropping from 5.1% in May to 4.3% in August. Overall, combining rural and urban areas, the unemployment rate stood at 5.1%.

Women’s Participation in Workforce on the Rise

The survey also highlighted encouraging trends for women in the labour market. The Worker Population Ratio (WPR) for women increased to 32.0% in August, up from 30.2% in June. Rural female WPR rose from 33.6% in June to 35.9% in August, while urban female WPR inched up from 22.9% to 23.8%.

Labour Force Participation Rate (LFPR) for women also improved. It increased from 32.0% in June to 33.7% in August. Rural female LFPR rose from 35.2% to 37.4%, and urban female LFPR climbed from 25.2% to 26.1%.

Overall Labour Market Indicators Improve

The overall Worker Population Ratio (WPR) increased to 52.2% in August, compared with 51.2% in June. Similarly, the overall LFPR for individuals aged 15 years and above rose from 54.2% in June to 55% in August.

The August 2025 PLFS bulletin is based on responses from 376,839 individuals, including 215,895 from rural areas and 160,944 from urban areas.

About the PLFS Survey

The Periodic Labour Force Survey (PLFS), conducted by the National Statistical Office (NSO), MoSPI, is the primary source of data on activity participation, employment, and unemployment conditions in India.

Since January 2025, the survey methodology has been modified to provide monthly and quarterly estimates of labour force indicators. Monthly bulletins, like the one for August 2025, present estimates of key labour market indicators—including Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR)—at the all-India level, using the Current Weekly Status (CWS) approach.

The August bulletin is the fifth in the series, following the release of monthly results for April to July 2025.