India’s unemployment rate has declined to 6.5% in 2025, down from 7.0% in 2024, indicating a gradual improvement in the country’s labour market. The data, released by the Ministry of Statistics and Programme Implementation through the Periodic Labour Force Survey (PLFS) 2025, highlights better employment opportunities, particularly for educated individuals aged 15 years and above.
According to the PLFS 2025 report, the overall unemployment rate stands at 3.1%, while educated unemployment is recorded at 6.5%. Youth unemployment (15–29 years) has also declined to 9.9% from 10.3% in 2024, reflecting a modest but positive trend. At the same time, labour force participation and worker population ratios have remained stable, suggesting steady improvement without major disruptions.
One of the key highlights is the progress in urban female employment. The unemployment rate among urban women has dropped to 6.4% from 6.7%, with increased participation in both salaried and self-employment roles. This indicates growing inclusion of women in the workforce, although challenges still remain.
The report also points to a structural shift in India’s labour market. The share of regular salaried jobs has increased to 23.6% in 2025, up from 22.4% in 2024, while the share of self-employed workers has declined. This suggests a move towards more stable and formal employment opportunities.
Sector-wise trends show growth in manufacturing and services, along with a gradual decline in agriculture’s share of employment. This reflects the long-term transition of the Indian economy from agriculture to industry and services.
Overall, the PLFS 2025 findings indicate a positive trajectory for India’s labour market, with improving employment trends, rising formalisation, and gradual reduction in unemployment, while also highlighting areas that still require policy focus, particularly youth employment and gender equality.
