India’s unemployment rate for people aged 15 years and above fell to a six-month low of 5% in August, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO) on Tuesday. The joblessness rate was 5.1% both in July and August 2025.
The decline in the unemployment rate was mainly driven by rural India, while it rose in urban areas—a trend that has continued for the last three months. The unemployment rate in rural areas fell to an eight-month low of 4.1% in August from 4.5% in July. In urban areas, unemployment rose to a five-month high of 6.8% in August from 6.7% in July.
Urban and rural unemployment was 6.7% and 4.3%, respectively, in August 2025.
The latest monthly figures show lower unemployment in the second quarter of FY27, after the joblessness rate rose to 5.4% in the April-June quarter from 5% in January-March.
Gender Disparities
The national unemployment rate was higher among women at 5.1%, though it fell from 5.4% in July. The male unemployment rate eased to 4.9% from 5.0% in July.
The survey showed a decline in unemployment among rural workers across genders in August, while the rate rose for urban men and women.
Rural male unemployment declined to 4.3% in August from 4.6% in July and 4.5% a year ago. Urban male unemployment jumped to 6.1% in August from 5.9% both a month ago and August 2025.
Urban female unemployment rose slightly to 8.9% last month from 8.8% in July, while the rate fell in rural areas to 3.9% from 4.3% in July.
Youth Joblessness
Youth unemployment—for those aged between 15 and 29 years—eased to 15.1% in August from 15.6% in July. The unemployment rate was higher among young women at 18.5%, while for young men it was 13.9%.
Joblessness among youth in urban areas was starkly higher than in rural areas. Urban youth unemployment rate rose to 18.7% in August from 18.6% in July, while for rural youth it fell to 13.3% from 14.1% in July.
The August PLFS bulletin also pointed to a rise in labour force participation. The Labour Force Participation Rate (LFPR)-the percentage of persons working or seeking or available for work-for people aged 15 years and above increased to a six-month high of 55.6% in August from 55.4% in July.
The worker population ratio–the percentage of employed persons in the population–for those aged 15 years and above was 52.8% in August, up from 52.5% in July.
The monthly estimates are based on responses from 3,70,160 people surveyed across the country.