Unemployment rate declines in August 2025; Women’s participation increases

The unemployment rate in rural areas has been falling for three consecutive months. From 5.1% in May, it rose to 4.8% in June, 4.6% in July and 4.3% in August. Overall, the unemployment rate was recorded at 5.1%, both rural and urban.

New Delhi: India's unemployment rate has come down to 5.1 percent in August 2025. This is the second consecutive month when the unemployment rate has declined. According to the Periodic Labor Force Survey (PLFS) data released by the Ministry of Statistics and Program Implementation (MOSPI) on Monday, the unemployment rate was 5.6% in June, which came down to 5.2% in July and now 5.1% in August.

Unemployment Rate Decreased Among Men

According to the report, the unemployment rate for men aged 15 years and above declined to 5.0% in August, the lowest since April 2025.

Urban male unemployment: Decreased from 6.6% in July to 5.9% in August.

Rural male unemployment: 4.5% in August, while it was 5.1% in May.

The unemployment rate in rural areas has been falling for three consecutive months. From 5.1% in May, it rose to 4.8% in June, 4.6% in July and 4.3% in August. Overall, the unemployment rate was recorded at 5.1%, both rural and urban.

Increase In Women's Participation

A significant increase has been recorded in the participation of women's workforce in August 2025.

Worker Population Ratio (WPR): 30.2% in June, which increased to 32.0% in August.

Rural women: WPR increased from 33.6% in June to 35.9% in August.

Urban women: WPR increased from 22.9% in June to 23.8% in August.

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Similarly, the labor force participation rate (LFPR) of women also increased from 32.0% in June to 33.7% in August.

The LFPR of rural women was 35.2% in June, which increased to 37.4% in August.

The LFPR of urban women increased from 25.2% in June to 26.1% in August.

Improvement In Overall Labour Force

The report shows that the worker population ratio and labour force participation rate have also improved at the overall level.

WPR: 51.2% in June, which increased to 52.2% in August.

LFPR: 54.2% in June, which increased to 55% in August.

Survey Basis

This bulletin of August 2025 is based on the responses of 3,76,839 individuals. Of these, 2,15,895 were from rural areas and 1,60,944 from urban areas.

The decline in unemployment rate in India and increasing participation of women are considered positive signs for the labour market of the country. Experts say that the labor market may strengthen further in the coming months due to increased employment opportunities in rural areas and an increase in the rate of women joining the workforce.