India’s unemployment rate for people aged 15 years and above declined to 5.1% in the July-September 2026 quarter from 5.4% in the previous quarter, according to the latest Periodic Labour Force Survey. Rural unemployment improved sharply, while the overall labour force participation rate also increased.
New Delhi, November 10 — India’s unemployment rate declined marginally to 5.1% during the July-September 2026 quarter, indicating an improvement in labour market conditions, according to the latest Periodic Labour Force Survey (PLFS).
The unemployment rate for people aged 15 years and above stood at 5.2% in the corresponding quarter last year and 5.4% during April-June 2026.
The PLFS is conducted by the National Statistics Office (NSO) and serves as a key official source of information on employment, unemployment and labour force participation in India.
The latest quarterly estimates are based on information collected from 5,55,593 people across the country.
Rural unemployment falls to 4.3%
The improvement was more visible in rural India.
The rural unemployment rate declined to 4.3% in July-September from 4.8% in the previous quarter.
Urban unemployment, however, remained broadly stable at 6.8% compared with 6.7% in April-June.
On a year-on-year basis, rural unemployment was almost unchanged from 4.4% in the July-September 2025 quarter.
Rural male unemployment declined to 4.4% from 4.7% a year earlier.
In urban India, the male unemployment rate improved marginally to 6.1% from 6.2%, while the female unemployment rate declined to 8.8% from 9%.
Labour force participation improves
Another positive indicator was an increase in India’s Labour Force Participation Rate (LFPR).
The overall LFPR for people aged 15 years and above increased to 55.5% from 54.6% in the previous quarter.
Rural LFPR rose to 58.1% from 56.9%, while urban LFPR edged up to 50.4% from 50.2%.
Female participation also improved significantly, with the overall female LFPR increasing to 34.7% from 33.2%.
Worker population ratio rises
India’s overall Worker Population Ratio (WPR) also improved to 52.7% during July-September from 51.7% in the preceding quarter.
In rural areas, the ratio increased to 55.6% from 54.2%, while the urban WPR remained largely stable at 46.9%.
The employment mix also showed some changes. The share of rural workers engaged in self-employment increased to 62.7% from 61.4%, while regular wage and salaried workers in urban areas increased to 49.6% from 49.3%.
Meanwhile, the share of casual labour declined in both rural and urban areas during the quarter.
The latest PLFS data therefore points to a modest improvement in India’s employment indicators, led by lower rural unemployment and stronger labour force participation.
