Has India’s Employment Rate Increased in July?
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Synopsis
India's employment indicators show a positive trend, with the labour force participation rate rising to 54.9% in July. This increase is supported by improvements in both rural and urban worker participation rates, highlighting a gradual recovery in the job market. Dive into the latest statistics and what they mean for India's workforce.
Key Takeaways
- Labour force participation rate rose to 54.9% in July.
- Unemployment rate declined to 5.2%.
- Rural LFPR was 56.9% compared to 50.7% in urban areas.
- WPR for rural females is 35.5%, urban females at 23.5%.
- Agriculture remains key for rural employment.
New Delhi, Aug 18 (NationPress) The labour force participation rate (LFPR) in India, a key metric for assessing employment, has increased to 54.9% among individuals aged 15 years and older in July, up from 54.2% in June, as reported by the Ministry of Statistics on Monday.
Additionally, the worker participation rate (WPR), another significant employment indicator, rose to 54.4% in rural areas for the same age group in July, compared to 53.3% in June 2025.
In urban regions, the WPR saw a slight uptick to 47.0% in July from 46.8% in June 2025, further corroborating the rise in LFPR and indicating improved employment opportunities.
The WPR for rural females aged 15 years and above stood at 35.5% in July, while their urban counterparts had a WPR of 23.5%. Overall, the female WPR at the national level for the same age group was 31.6% in July.
The unemployment rate for individuals aged 15 years and older fell to 5.2% in July 2025 from 5.6% in June 2025.
In July, the LFPR in rural areas was 56.9% and 50.7% in urban locations for the same demographic.
For rural males aged 15 years and above, the LFPR was 78.1%, while urban males in the same age group had an LFPR of 75.1% in July 2025.
The LFPR for rural females increased to 36.9% in July, rising from 35.2% in June 2025.
The sampling methodology for the Periodic Labour Force Survey (PLFS) was updated in January 2025 to provide more frequent and detailed labour force indicators.
The redesigned PLFS aims to deliver key employment and unemployment metrics—including LFPR, WPR, and Unemployment Rate (UR)—on a monthly basis for both rural and urban segments across India under the Current Weekly Status (CWS).
It also seeks to extend quarterly PLFS results to rural areas, enabling the generation of quarterly labour market estimates for both demographics within the CWS framework. Moreover, annual estimates of essential employment and unemployment indicators will be provided for both usual and CWS statuses in rural and urban settings.
The unemployment rate for both males and females aged 15 years and above was recorded at 5.4% during the April-June quarter of 2025.
The overall rural unemployment rate was lower at 4.8% compared to the urban unemployment rate of 6.8% in the same quarter.
By industry, the agricultural sector employed the majority of rural workers, comprising 44.6% of men and 70.9% of women, while the tertiary sector was the predominant source of employment in urban areas, accounting for 60.6% of men and 64.9% of women. In total, approximately 56.4 crore individuals aged 15 years and above were employed in the country during this quarter, with 39.7 crore men and 16.7 crore women.
Point of View
I believe these statistics reflect a cautious optimism in India's employment landscape. While growth in participation rates is encouraging, it is essential to address the disparities between rural and urban job opportunities, especially for women. Continuous monitoring and policy support are crucial to sustain this upward trend in employment.
NationPress
08/10/2025
Frequently Asked Questions
What is the current labour force participation rate in India?
As of July, the labour force participation rate in India is 54.9%, an increase from 54.2% in June.
How did the unemployment rate change in July?
The unemployment rate decreased to 5.2% in July from 5.6% in June.
What are the participation rates for rural and urban areas?
In July, the LFPR was 56.9% in rural areas and 50.7% in urban areas.
What is the WPR for females in rural and urban settings?
The WPR for rural females is 35.5%, while for urban females, it is 23.5%.
What industries dominate employment in India?
The agriculture sector employs a majority of rural workers, while the tertiary sector is the largest employer in urban areas.
