The labour market in India displayed positive signs in August 2025, with unemployment rates easing and female participation in the workforce showing a steady rise, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
According to the survey, the overall unemployment rate among persons aged 15 years and above dropped to 5.1 percent in August, compared with 5.2 percent in July and 5.6 percent in June. Male unemployment fell to its lowest level in five months at 5 percent, led by a sharp decline in urban unemployment, which eased from 6.6 percent in July to 5.9 percent in August. Rural male unemployment also declined to 4.5 percent, the lowest level observed in the past four months.
The bulletin noted that the overall rural unemployment rate has fallen consistently for three months in a row, coming down from 5.1 percent in May to 4.3 percent in August. This improvement has been accompanied by a visible rise in the participation of women in the workforce. The Worker Population Ratio (WPR) among females rose to 32 percent in August, continuing its upward trend from 31.6 percent in July and 30.2 percent in June. Gains were reported in both rural and urban areas, with the rural female WPR rising from 33.6 percent in June to 35.9 percent in August, while in urban areas it moved from 22.9 percent to 23.8 percent during the same period.
The female Labour Force Participation Rate (LFPR) also recorded consecutive increases, reaching 33.7 percent in August compared to 32 percent in June. In rural areas, the LFPR went up from 35.2 percent to 37.4 percent, while in urban areas it improved from 25.2 percent to 26.1 percent. The overall Worker Population Ratio showed a similar rise, touching 52.2 percent in August against 51.2 percent in June. Meanwhile, the overall LFPR for persons aged 15 years and above stood at 55 percent in August, higher than 54.2 percent in June.
The NSO has been releasing monthly PLFS bulletins since January 2025, following changes in methodology to provide more frequent and timely estimates of key labour market indicators, including unemployment rate, worker population ratio, and labour force participation rate. The August 2025 bulletin is the fifth in the series and is based on information collected from nearly 5.92 lakh individuals across the country, including over 3.76 lakh respondents in rural areas and 2.15 lakh in urban areas.
