INDIA’S UNEMPLOYMENT RATE FALLS TO 5.1% (AUGUST 2025)

Current Context: According to Periodic Labour Force Surveys (PLFS) data released by MoSPI, India’s unemployment rate fell to 5.1% in August 2025, showing improvement in rural employment and female participation.

KEY HIGHLIGHTS OF PLFS DATA

• Overall Unemployment Rate (15+ years):1% (lowest in 3 months)
• Male Unemployment:0% (5-month low)
  • Urban male UR: 6.6% (July) → 5.9% (August)
  • Rural male UR: 4.5% (lowest in 5 months)
• Rural Recovery: Rural UR dropped from 5.1% (May) → 4.3% (August)

RISE IN FEMALE WORKFORCE PARTICIPATION

• Worker Population Ratio (WPR – Female):
  • 2% (June) → 32.0% (August)
  • Rural: 33.6% → 35.9%
  • Urban: 22.9% → 23.8%
• Labour Force Participation Rate (LFPR – Female):
  • 32% (June) → 33.7% (August)
  • Rural: 35.2% → 37.4%
  • Urban: 25.2% → 26.1%

OVERALL PARTICIPATION

• WPR (All):2% (August) vs. 51.2% (June)
• LFPR (All): 55% (August) vs. 54.2% (June)