There is a relief news for the Indian economy and job market. According to the latest data released by the Ministry of Statistics, the unemployment rate in the country has decreased. Employment data for the quarter October-December 2025 has shown positive signs. According to them, there has been a significant improvement in rural India and the share of female workforce. Government figures show that the labor market is now moving towards improvement.
What are the statistics related to unemployment saying?
According to official data, the unemployment rate for people aged 15 years and above has declined compared to the previous quarter.
- Rural India: The pace of improvement in rural areas has been fast. The unemployment rate here has come down to four percent in October-December 2025. In the previous quarter this figure was 4.4 percent. The decline in unemployment rate has come due to increase in employment in both male and female categories.
- Urban India: The situation is improving in cities also. The urban unemployment rate has declined to 6.7 percent from 6.9 percent in the previous quarter. The main contribution in this was from urban men, whose unemployment rate has fallen from 6.2 percent to 5.9 percent.
increased participation of women
The most encouraging aspect of this report is the increasing participation of women in the labor force. The labor force participation rate (LFPR), which measures the share of the population that is working or looking for work, has increased.
The overall LFPR increased to 55.8 per cent during October-December 2025 from 55.1 per cent in the previous quarter. Especially for women (15 years and above), the rate has increased from 33.7 percent to 34.9 percent. This indicates that women are now becoming part of the labor force in larger numbers.
Support for farming and self-employment
Statistics show that traditional sectors still dominate employment generation:
- agricultural sector: Agriculture sector remains the backbone of rural employment. Of those employed in the quarter, 58.5 percent were in agriculture, up from 57.7 percent in the previous quarter.
- Self Employed: Instead of looking for a job, people are giving preference to starting their own work. Self-employment has increased to 63.2 percent in rural areas and 39.7 percent in urban areas.
Are we moving in the right direction on the employment front?
Another key indicator of employment, the worker population ratio (WPR), has increased to 53.1 percent from 52.2 percent in July-September 2025. The decline in unemployment rate and increase in WPR indicate that employment opportunities are being created in the economy. However, the increasing dependence on agriculture and self-employment also suggests that more opportunities are still needed in the organized sector.
