India’s Unemployment Rate Drops to 5.2% in July 2025, PLFS Reports

India’s job market showed signs of improvement in July 2025, as the unemployment rate dipped to 5.2% from 5.6% in June, according to the Periodic Labour Force Survey (PLFS). The data highlights stronger labour participation, especially among women in rural areas, suggesting gradual recovery in employment trends.

Unemployment Rate Sees a Decline

The latest PLFS bulletin, published by the Ministry of Statistics and Programme Implementation, revealed that India’s unemployment rate dropped to 5.2% in July 2025, compared to 5.6% in June. 

This indicates a steady improvement in the nation’s employment scenario, offering optimism for job seekers.

Labour Force Participation Rises

The Labour Force Participation Rate (LFPR) among people aged 15 and above rose to 54.9% in July, up from 54.2% in June 2025. Breaking it down further, rural participation stood at 56.9%, while urban areas recorded 50.7%. This suggests broader engagement of the working-age population in economic activity.

Gender Based Trends in Labour Participation

The survey highlights notable differences in participation between men and women.

• Rural male LFPR: 78.1%
• Urban male LFPR: 75.1%
• Rural female LFPR: increased to 36.9% (from 35.2% in June)

This upward trend in rural female participation reflects improving inclusivity in the workforce.

Workforce Participation Rate Strengthens

The Workforce Participation Rate (WPR) also showed an uptick. In rural areas, it climbed to 54.4% in July from 53.3% in June. Urban areas marked a smaller rise, reaching 47.0% in July from 46.8% in June.

Among women aged 15 and above, rural WPR was 35.5%, significantly higher than the 23.5% observed in urban regions. Overall, female WPR at the national level stood at 31.6% in July 2025.

Read More: ITR Filing FY25: Should Students and Unemployed Individuals File ITR?

Conclusion

The July 2025 PLFS data highlights both progress and ongoing challenges in India’s labour market. While the decline in unemployment and rising participation rates signal positive momentum, disparities between rural and urban areas, and between men and women, underline the need for continued policy focus.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.