New Delhi’s latest labor data paints a brighter picture for India’s job market. The unemployment rate for individuals aged 15 and above fell to 5.2 percent in the October-December 2025 quarter, down from 5.6 percent in the previous three months. This welcome decline, revealed by the Ministry of Statistics on Tuesday, signals steady economic momentum amid seasonal shifts.
Rural areas led the recovery, with unemployment easing to 4 percent from 4.4 percent. Both men and women in villages saw improvements, reflecting stronger agricultural activity and local opportunities. Urban unemployment also ticked down slightly to 6.7 percent from 6.9 percent, driven primarily by a drop among city men from 6.2 percent to 5.9 percent.
Labor force participation rate (LFPR) climbed to 55.8 percent overall, up from 55.1 percent, indicating more people are joining the workforce. Women’s LFPR for those aged 5 and above surged notably to 34.9 percent from 33.7 percent, a trend that could reshape gender dynamics in employment.
Worker population ratio (WPR) rose to 53.1 percent from 52.2 percent, with rural areas showing consistent gains across genders since April-June. Self-employment expanded in both rural and urban settings, reaching 63.2 percent in villages and 39.7 percent in cities. Agriculture remains the backbone, employing 58.5 percent of rural workers, up from 57.7 percent.
These figures suggest a resilient economy adapting to post-monsoon demands. While challenges persist, the data underscores growing job creation, particularly in self-sustaining sectors. Economists will watch if this trajectory holds through 2026, potentially easing long-term youth unemployment pressures.