Fresh data from the Periodic Labour Force Survey shows India’s unemployment dipping to 5.2% in July 2025, with female labour force participation inching up to 25.5%.
India’s unemployment rate has eased slightly, slipping to 5.2% in July 2025 from 5.6% in June, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation. The monthly report, prepared by the Labour Bureau, highlights a modest but significant improvement in employment figures nationwide.
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A key takeaway from the survey is the rise in female labour force participation, which increased from 24.5% in June to 25.5% in July. While still far below male participation rates, this uptick suggests a gradual but steady movement of women into the workforce. The Labour Force Participation Rate (LFPR) overall stood at 41.4%, with men contributing 57.4%.
The report highlights the rural-urban divide in India’s job landscape. Rural unemployment stood at 4.4%, while urban unemployment was nearly double at 7.2%. Among women, the challenge is even sharper—urban female unemployment was at 8.7%, significantly higher than rural women at 3.9%. Male unemployment in urban areas stood at 6.6%, compared to 4.6% in rural areas.
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Meanwhile, the Worker Population Ratio (WPR) for people aged 15 and above rose to 52% nationally, an improvement from June’s 51.2%. Rural WPR was stronger at 54.4% compared to 47% in urban regions, suggesting that rural employment opportunities remain more resilient.
The July survey covered 89,505 households and 3.79 lakh individuals across the country, making it one of the most comprehensive monthly labour market studies to date. Experts suggest that while the slight fall in unemployment is encouraging, the persistent urban job crisis, especially for women, remains a structural challenge for India’s labour market.
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