Archive · 15 Sep 2026
India Unemployment Falls to Six-Month Low as Rural Jobs Improve
India’s unemployment rate became a little lower in August.
It fell to 5%, compared with 5.1% in July.
The biggest improvement happened in rural areas, where unemployment dropped to 4.1%.
In cities, unemployment increased slightly to 6.8%.
More people were working or looking for work, so the labour-force participation rate also rose.
The share of working-age people with jobs increased as well.
Women’s employment measures improved, especially in rural areas.
The figures came from a government survey of people aged 15 and older.
India’s unemployment rate fell to 5% in August from 5.1% in July, a six-month low.
Rural unemployment declined to 4.1% from 4.5%, while urban unemployment edged up to 6.8% from 6.7%.
The labour-force participation rate rose to 55.6%, and the worker population ratio increased to 52.8%.
Female unemployment and participation improved, especially in rural areas; urban female unemployment was broadly unchanged.
The estimates cover people aged 15 and above and were based on responses from 370,160 people.
- Who
- People aged 15 and above in India, measured through the Periodic Labour Force Survey by the Ministry of Statistics and Programme Implementation.
- What
- India’s unemployment rate fell to 5% in August, driven mainly by improved rural employment.
- When
- August, compared with July; the data was released on Tuesday.
- Where
- India, with separate rural and urban estimates.
- Why
- The overall decline was driven by a fall in rural unemployment, alongside higher labour-force participation and employment ratios.
- Overall unemployment
- 5% in August, down from 5.1% in July
- Rural unemployment
- 4.1% in August, down from 4.5% in July
- Urban unemployment
- 6.8% in August, up from 6.7% in July
- Labour-force participation rate
- 55.6% in August, up from 55.4% in July
- Worker population ratio
- 52.8% in August, up from 52.5% in July
- Survey coverage
- 370,160 respondents: 211,353 rural and 158,807 urban
- Measurement basis
- People aged 15 and above, using the Current Weekly Status approach