Labour Market Momentum Continues: Unemployment Declines to 5.2%; Rural Female Participation Rises
SDG 8: Decent Work and Economic Growth | SDG 5: Gender Equality | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Statistics and Programme Implementation (MoSPI) | NITI Aayog
The Periodic Labour Force Survey (PLFS) Quarterly Bulletin for July–September 2025 indicates sustained positive momentum in India’s labor market (for persons aged 15 years and above), driven largely by the rural sector and increased female participation. On average, 56.2 crore (562 million) persons were employed during the quarter. The continued stability and growth confirm the resilience of the workforce and validate policy efforts toward greater economic inclusion.
Unemployment Decline: The overall Unemployment Rate (UR) declined to 5.2 percent in July–September 2025, down from 5.4 percent in the previous quarter. This decline was primarily driven by the rural sector, where the UR fell from 4.8 percent to 4.4 percent.
Rising Participation and Workforce: The overall Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) marginally increased to 55.1 percent and 52.2 percent, respectively.
Gender and Rural Inclusion: Female LFPR witnessed an increase to 33.7 percent. This improvement was driven largely by the increase in female LFPR in rural areas, rising from 37.0 percent to 37.5 percent.
Structural and Sectoral Shifts
Rural Sector: The share of workers engaged in the agriculture sector increased substantially from 53.5 percent to 57.7 percent. This surge is directly attributed to Kharif agricultural operations.
Self-Employment Surge: The share of self-employed workers in rural areas witnessed a notable rise, increasing from 60.7 percent to 62.8 percent.
Urban Sector: The tertiary sector remained the dominant urban employer, engaging 62.0 percent of workers. The share of regular wage/salaried employees in urban areas showed a modest improvement, rising to 49.8 percent
The decline in unemployment and the sustained increase in female LFPR, particularly in rural areas, validate policy efforts aimed at gender inclusivity and strengthening rural livelihoods. The structural shift towards agricultural employment during the Kharif season highlights the sector’s continued role as a major job absorber, reinforcing the critical link between seasonal agricultural policies and national employment stability.
Follow the full report here: PERIODIC LABOUR FORCE SURVEY (PLFS) Quarterly Bulletin July – September, 2025