Overview:
India’s unemployment rate edged up to 5.2% in September 2025, reflecting a slowdown in labour market momentum across both rural and urban regions. Data from the Periodic Labour Force Survey (PLFS), released by the National Statistical Office (NSO), points to rising rural joblessness and stagnant urban employment, following the seasonal lull after the completion of agricultural sowing activities.
Rural and Urban Employment Trends
- Rural unemployment: 4.6% in September, up from 4.3% in August — the highest since June 2025.
- Urban unemployment: 6.8%, slightly up from 6.7%.
- Gender impact:
- Male unemployment rose to 5.1% from 5%.
- Female unemployment increased to 5.5% from 5.2%, showing a sharper rise.
Labour Force Participation and Youth Employment
- Overall Labour Force Participation Rate (LFPR): 55.3% in September, up from 55% in August.
- Rural LFPR: 57.4%, showing improvement.
- Urban LFPR: Stable at 50.9%.
Youth Employment (ages 15–29):
- Unemployment climbed to 15%, highlighting pressures on new entrants to the job market.
- Gender-specific youth unemployment:
- Men: 13.9% (up from 13.5%)
- Women: Stable at 17.8%
PLFS Methodology Update
The NSO has revamped the PLFS sampling methodology to provide monthly employment indicators using the Current Weekly Status (CWS) approach. The September 2025 bulletin is the sixth monthly release under this new system, offering a more granular and timely view of employment dynamics across India.
Implications:
The rise in unemployment, especially in rural areas, signals seasonal and structural challenges in the labour market. Policymakers and industry stakeholders will need to monitor these trends closely, particularly for youth employment and female workforce participation.
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