ECONOMY
Jobless rate dips marginally to 5.2% in Q2, urban unemployment still a major concern
- IBJ Bureau
- Nov 11, 2025
Unemployment rate in the country fell to 5.2 per cent in the July-September quarter from 5.4 per cent in the previous three months. The drop was driven by increased rural employment during the farming season and a pick-up in women’s participation in the job market, according to government data.
The unemployment rate among those 15 years and above eased in rural areas to 4.4 per cent in the second quarter (Q2) of FY26 from 4.8 per cent in the previous quarter. However, urban unemployment ticked up to 6.9 per cent from 6.8 per cent, the Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics, has shown.
The survey covered 5,64,000 people across India and estimated 56.20 crore employed persons during the quarter, according to the Reuters. The overall Labour Force Participation Rate (LFPR) rose marginally to 55.10 per cent from 55 per cent in the previous quarter. Women’s participation rate increased to 33.7 per cent from 33.4 per cent, continuing an upward trend in women’s engagement in the workforce.
However, unemployment rate among women in urban areas rose to 9 per cent from 8.9 per cent and among men it was at 6.2 per cent from 6.1 per cent in the previous quarter. The Worker Population Ratio (WPR) – the share of employed persons in the total population – also rose slightly to 52.2 per cent from 52 per cent, supported by higher women’s participation, especially in rural areas.
The share of self-employed workers in rural areas increased to 62.8 per cent from 60.7 per cent, reflecting seasonal farm activity, while regular wage and salaried employment in urban areas improved modestly to 49.8 per cent from 49.4 per cent.
The survey also shows that 57.7 per cent of the rural workforce was engaged in agriculture during the quarter, compared with 53.5 per cent earlier, while the share of urban workers in the tertiary sector is 62 per cent.
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