India’s unemployment rate for people aged 15 years and above eased marginally to , according to the latest Periodic Labour Force Survey (PLFS) data released by the government on Tuesday.
The data also showed a rise in labour force participation, while employment indicators improved, particularly in rural areas.
The decline in the overall unemployment rate was mainly supported by rural areas. The rural unemployment rate fell to 4.1% in August from 4.5% in July. This was the lowest rural unemployment rate recorded since January 2026.
In urban areas, however, the unemployment rate edged up slightly to 6.8% in August from 6.7% in July.
Compared with August last year, the overall unemployment rate remained broadly stable. Rural unemployment, meanwhile, declined from 4.3% in August 2025 to 4.1% this year.
The unemployment rate among men aged 15 years and above also continued to improve. It fell to 4.9% in August from 5.4% in May. Rural male unemployment declined to 4.3% from 4.6% in July, while urban male unemployment rose slightly to 6.1%.
Among women, the overall unemployment rate fell to 5.1% in August from 5.9% in June. Rural female unemployment also declined to 3.9% from 4.3% in July.
The Labour Force Participation Rate (LFPR), which measures the share of people who are working or looking for work, increased to 55.6% in August from 55.4% in July.
Rural LFPR rose to 58.2% from 58%, while the urban rate remained unchanged at 50.4%.
Women’s participation also continued to improve. Overall female LFPR increased to 34.8% in August from 34.4% in July. Rural female LFPR rose to 39.4% from 38.8%, while urban female participation was broadly stable at 25.4%.
The Worker Population Ratio (WPR), which shows the proportion of the population that is employed, increased to 52.8% in August from 52.5% in July.
Rural WPR rose to 55.8% from 55.4%, while urban WPR remained unchanged at 47%.
The August PLFS estimates were based on information collected from 3,70,160 people across the country, including 2,11,353 people in rural areas and 1,58,807 in urban areas.