The unemployment rate in India declined to 5.2% in the July-September quarter, compared with 5.4% in the previous quarter, data from the Periodic Labour Force Survey showed. According to a press release issued by the Ministry of Statistics on Monday, female workforce participation across all rural and urban areas also increased in the quarter.

According to the findings of the survey, the overall labour force participation rate held steady at 55.1% during the July-September period, compared to 55% during the previous quarter. The survey noted a slight uptick in both rural and urban areas, with labour force participation in rural areas inched up from 57.1% to 57.2%, whereas in urban areas, it increased marginally from 50.6% to 50.7%.

The survey also revealed that female labour force participation continued to rise—increasing to 33.7% between July and September, up from 33.4% in the previous quarter. According to the survey, this reflects a continued, but modest, upward movement in female participation in the labour force. The improvement was also driven mainly by increased female participation in rural areas, rising to 37.5% in July-September, compared to 37% in the April-June quarter.

In terms of the unemployment rate, divergent trends were found in the survey. In rural areas, the unemployment rate declined to 4.4% in the July-September quarter from 4.8% in the previous quarter, with reductions in both male and female unemployment rates. In contrast, urban unemployment rates edged up slightly, rising from 6.1% to 6.2% for males and from 8.9% to 9% for females during the same period.

Self-employed persons in rural areas increased to 62.8% during July-September, up from 60.7% recorded in the previous quarter, April-June. In urban areas, the share of regular wage or salaried employment also showed a marginal improvement, rising to 49.8% in July-September, from 49.4% in April-June, 2025.

In rural areas, the majority of workers were engaged in the agriculture sector, accounting for 57.7% during July-September, up from 53.5% in the previous quarter. This increase in the share of rural employment in the agriculture sector can be attributed to seasonal agricultural operations. In urban areas, the tertiary sector remained dominant, accounting for 62% of workers during July-September, 2025, slightly higher than 61.7% in April-June, 2025.