
India’s employment scenario strengthened in the July-September 2025 quarter. Data released by the Ministry of Statistics and Programme Implementation (MoSPI) shows that the unemployment rate for individuals aged 15 years and above fell to 5.2% in Q2FY26, compared with 5.4% in the previous quarter.
The latest Periodic Labour Force Survey highlights a broad-based recovery in job availability. Rural employment conditions improved significantly, bringing the rural unemployment rate down to 4.4% from 4.8% in the April–June quarter.
Urban unemployment stood at 6.9% from 6.8%, marginally higher due to uneven hiring in certain service sectors.
More individuals are entering the workforce. The Labour Force Participation Rate (LFPR), which measures the share of working-age individuals either working or actively looking for work, rose to 55.1% in Q2, up from 55% in Q1.
Female participation also increased, reaching 33.7% compared to 33.4% in the earlier quarter, reflecting steady improvement in women’s involvement in the workforce.
Read More: India's Unemployment Rate Climbs to 5.2% in September, Fuelled by Rural Sector Downturn!
India’s unemployment rate decline, accompanied by higher participation levels, signals improving labour market conditions and positive momentum heading into the next quarter.
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Published on: Nov 11, 2025, 2:19 PM IST

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