India’s labour market witnessed a slight yet significant improvement in the second quarter of 2025, according to the latest Periodic Labour Force Survey (PLFS) data released by the Ministry of Statistics and Programme Implementation (MoSPI). The unemployment rate among individuals aged 15 and above fell to 5.2% during July–September 2025, compared to 5.4% in the previous quarter, reflecting gradual recovery in job creation.
Rural areas performed better, with unemployment dropping to 4.4%, while urban unemployment remained higher at 6.9%, indicating continued challenges in city-based employment. Notably, female labour force participation rose from 33.4% in Q1 to 33.7% in Q2, signaling slow but steady progress in gender inclusivity within India’s workforce.
The Labour Force Participation Rate (LFPR) also edged up to 55.1%, suggesting more individuals are actively seeking or engaged in work. Experts attribute this improvement to post-pandemic stabilisation, seasonal rural employment, and growing opportunities in the gig and digital sectors.
While the data shows positive momentum, challenges such as the urban-rural divide and low female participation persist, calling for sustained policy interventions to ensure balanced and inclusive growth.
