India's labour market continues to show signs of gradual improvement, with unemployment rates easing along with the strengthening of female workforce, as per the latest August 2025 data of the Periodic Labour Force Survey (PLFS), which is released by the Ministry of Statistics and Programme Implementation (MoSPI).

The PLFS, which since January 2025 has been publishing monthly and quarterly estimates of key labour market indicators, reported that the unemployment rate (UR) among persons aged 15 years and above declined to 5.1% in August.

This is the second straight month of improvement, down from 5.6% in June.

The decline was most notable among men. The unemployment rate for males fell to 5% in August, which is the lowest in five months, driven by easing joblessness in both urban and rural areas.

In cities, male unemployment dropped from 6.6% in July to 5.9% in August, while in rural areas it dipped to 4.5%, lower than the levels observed over the past four months.

Female workforce participation also showed impressive gains. The Worker Population Ratio (WPR), which is defined as the percentage of the working-age population (15 years and above) that is employed, among women rose for the second consecutive month, climbing to 32% in August from 30.2% in June.

This data is echoed in the Labour Force Participation Rate (LFPR) for women, which rose to 33.7% from 32% for the same period. This rise in LFPR is more acute in rural areas, where it increased up from 35.2% in June to 37.4% in August, and for corresponding urban areas, the rise was from 25.2% to 26.1%.

"The overall LFPR for persons of age 15 years and above has increased from 54.2% in June 2025 to 55% in August 2025," the ministry said.

Overall employment conditions improved as well. The combined WPR across rural and urban areas increased to 52.2% in August from 51.2% in June, underscoring a broader recovery in labour market activity.