India's Unemployment Rate Falls to 5.2% in July, Government Survey Shows
India's unemployment rate declined to 5.2% in July from 5.6% in June, according to the latest Periodic Labour Force Survey (PLFS) data. The rate of joblessness was slightly higher among men (5.3%) than women (5.1%). Rural unemployment saw a notable drop to 4.4%, while urban unemployment edged up to 7.2%. The overall Labour Force Participation Rate (LFPR) also improved, rising to 41.4% in July, indicating more people are either working or actively seeking employment.
Unpacked:
The decline in rural unemployment was primarily driven by increased hiring ahead of the festive season and higher agricultural activity, as July typically marks a busy period for farming in India.
Urban unemployment rose slightly to 7.2% due to limited new job creation in urban sectors, while rural areas benefited from seasonal agricultural jobs and festival-related hiring, leading to a notable drop in rural unemployment.
The July unemployment rate of 5.2% is close to the record low of 5.1% set in April 2025, and well below the average rate of 8.43% from 2018–2025. The highest was 20.8% in June 2020 during the pandemic.
A higher LFPR indicates that a larger share of the population is either working or actively seeking work, reflecting improved economic engagement and optimism among job seekers about employment prospects.