India's Unemployment Rate Holds Steady in December 2025
The latest data from India's statistics ministry reveals a stable unemployment picture for December 2025. The unemployment rate for individuals aged 15 years and above remained at 4.8%. This figure shows only a marginal increase from 4.7% in November. The stability primarily stems from almost unchanged joblessness in rural areas.
Rural and Urban Unemployment Trends
According to the Periodic Labour Force Survey monthly bulletin released on Thursday, rural unemployment remained stagnant at 3.9% in December. Both rural men and women experienced no change in their unemployment rates. In contrast, urban areas faced a slight uptick. The urban unemployment rate edged up to 6.7% from 6.5% in November. This rise underscores persistent strains in urban labour markets.
Breaking down the figures further, the unemployment rate for rural males aged 15 and above stayed low and stable at 4.1%. However, urban males saw their rate increase from 5.6% in November to 5.9% in December. For females, the urban unemployment rate moderated to 9.1% from 9.3%. Rural female unemployment, though, increased to 3.6% from 3.4%. The survey noted a slight increase in the remaining gender sector, but it remained below mid-year levels.
Labour Force Participation Rate Shows Improvement
The overall labour force participation rate for people aged 15 and above trended upward. It reached 56.1% in December, compared to 55.8% in November. In rural areas, the LFPR was estimated at 59%, up from 58.6%. Urban areas experienced a slight dip to 50.2% from 50.4%.
The LFPR measures the percentage of the working-age population that is either employed or actively seeking work. It serves as a key economic indicator, showing how many adults engage in the economy. This metric excludes full-time students, retirees, or caregivers not looking for jobs. It helps assess labour market health beyond just unemployment figures.
For females aged 15 and above, overall labour force participation edged up to 35.3% from 35.1%. This marks the highest yearly figures. In rural areas, it increased to 40.1% from 39.7%. Urban areas saw a slight slip to 25.3% from 25.5%.
Expert Insights on Labour Market Trends
Rishi Shah, partner and economic advisory services leader at Grant Thornton Bharat, commented on the data. He said, "Recent labour market data suggests a gradual normalisation rather than any softening. Participation and employment indicators are improving, indicating better labour absorption, but the pace remains measured." Shah added, "Given the short data history and inherent volatility in high-frequency labour metrics, it is too early to infer structural strength. A durable assessment will require confirmation from longer-term trends and improvements in job quality and productivity."
Worker Population Ratio Details
The survey noted a gradual improvement in the worker population ratio for those aged 15 and above in December. The WPR edged up to 76.0% from 75.4% among rural males. For urban males, it fell to 70.4% from 70.9%. This resulted in an overall male WPR of 74.1%.
Rural female WPR rose marginally from 38.4% to 38.6%. Urban female WPR remained around 23.0%. Consequently, the overall female WPR increased to 33.6% from 33.4%. The overall WPR remained steady, rising marginally to 53.4% from 53.2%.
The worker population ratio indicates the percentage of a country's total population that is employed. It is calculated by dividing the total number of workers by the total population and multiplying by 100. A higher ratio suggests greater engagement in productive economic activities, showing how effectively human resources are utilized.
Survey Methodology and Scope
The PLFS for December was based on information collected from 373,990 people across India. This included 213,216 individuals in rural areas and 160,774 in urban areas. The comprehensive survey provides a detailed snapshot of India's labour market dynamics.
