India's unemployment rate for people aged 15 and above fell to 5% in September, a drop from 5.2% in the same month a year ago. The Periodic Labour Force Survey (PLFS) bulletin released Thursday showed the rate held steady at 5% for the second consecutive month, signaling a flat but stable labour market.
The survey, which measures labour market indicators based on the current weekly status of respondents, found that the labour force participation rate (LFPR) improved across the board. This was particularly evident in rural areas, where more people are either working or actively seeking work.
Urban women saw a significant milestone. Their participation rate jumped to 25.9% in September, the highest level recorded since October 2025. However, this increase in participation came with a slight uptick in joblessness for urban women, which rose to 9.2% in September from 8.9% in August. This pushed the overall unemployment rate for women to 5.2%, up from 5.1%.
The data suggests a complex dynamic in the urban labour market. While more women are entering the workforce, the available jobs have not kept pace with their participation, leading to a marginal rise in unemployment for this demographic. Rural areas, however, continue to show broad-based improvements in labour force engagement.