India’s unemployment rate for those aged 15 years and above declined to 5.1% in July compared to 5.5% June as a marginal rise in in urban areas was compensated by sharp easing of rural unemployment rate.
The unemployment rate in urban areas rose to 6.7% in July from 6.6% in the previous month, driven primarily by an increase in the unemployment rate among females, according to the Periodic Labour Force Survey Monthly Bulletin (PLFS-M) released by the ministry of statistics and programme implementation on Monday.
The in rural areas witnessed sharper easing to 4.5% in July from a high of 5% in June, with the male unemployment rate falling from 4.9% in June to 4.6% in July, while female unemployment fell to 4.3% from 5% in June.
Compared with July 2025, the urban UR fell from 7.2% to 6.7% in July. The overall UR eased, while the rural UR modestly increased from 4.4% in July 2025 to 4.5% in July, the ministry said.
The PLFS is the primary source of data on activity participation and employment and unemployment conditions of the population. The survey methodology has been modified from January 2025 to provide monthly and quarterly estimates of force indicators for the country.
Monthly bulletins present estimates of key labour market indicators such as the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR) and Unemployment Rate (UR) at the all-India level following the Current Weekly Status (CWS) approach.
Overall LFPR
According to the survey, the overall LFPR among persons of age 15 years and above was estimated at 55.4% in July, higher than 54.4% in June and marginally higher than 54.9% recorded in July 2025. In urban areas, the LFPR stood at 50.4% in July compared to 50.1% in June. The rural LFPR was estimated at 58% in July, higher than 56.6% LFPR levels recorded in June, the survey showed.
The overall female LFPR experienced a noticeable increase. Female LFPR (15+ years) was observed at 35.4% in July against 32.7% in June, also remaining above 33.3% level recorded in the corresponding month of the previous year.
The Worker Population Ratio (WPR) in the age group 15 years and above showed a broadly improving trend in July across sectors, the survey said. The WPR for persons aged 15 years and above increased to 52.5% in July as against 51.4% in June.
In the rural areas, WPR increased to 55.4% in July from 53.8% in June, indicating an increase of 1.6 percentage points. WPR in urban areas increased marginally to 47% from 46.8% during the same period. The male WPR improved in July relative to both the previous month and the same month a year earlier, said the survey. Female WPR increased sharply to 32.5% in July, up from 30.8% in June.
At the all-India level, the monthly estimates are based on information collected from 371,021 people surveyed. About 211,411 people were surveyed in rural areas and 159,610 in urban areas.