Rural unemployment fell to 4.3% from 4.8% in the previous quarter, while urban unemployment edged up to 6.8% from 6.7%.
Highlights
- India’s unemployment rate fell to 5.1% from 5.4% in April–June and 5.2% a year earlier.
- Rural unemployment eased to 4.3%, while urban unemployment edged up to 6.8% from the previous quarter.
- Labour force participation rose to 55.5% from 54.6%.
- Female labour force participation climbed to 34.7% from 33.2%.
- The share of people aged 15 and above who were employed rose to 52.7% from 51.7%.
New Delhi, Nov 10 — India’s unemployment rate among people aged 15 and above eased to 5.1% in July–September 2026 from 5.4% in the previous quarter and 5.2% a year earlier, according to the Periodic Labour Force Survey (PLFS) released on Tuesday. The national rate fell as rural joblessness declined, while urban unemployment edged up from the previous quarter.
Rural unemployment fell to 4.3% from 4.8% in April–June and was slightly below the 4.4% recorded a year earlier. Urban unemployment rose to 6.8% from 6.7% in the previous quarter. Compared with July–September 2025, however, the urban unemployment rate fell from 6.2% to 6.1% among men and from 9% to 8.8% among women. The rural male unemployment rate declined to 4.4% from 4.7% a year earlier.
Labour force participation rises
The labour force participation rate, which measures the share of people who are working or seeking or available for work, rose to 55.5% from 54.6% in April–June and 55.1% a year earlier. Rural participation increased to 58.1% from 56.9% in the previous quarter, while urban participation rose to 50.4% from 50.2%. Female participation nationwide climbed to 34.7% from 33.2%.
The worker population ratio, which measures the share of people who are employed, rose to 52.7% from 51.7% in the previous quarter. The ratio increased to 55.6% from 54.2% in rural areas and edged up to 46.9% from 46.8% in urban areas.
Agriculture accounts for a larger share of rural work
The share of rural workers engaged in agriculture rose to 56.7% from 52.9% in April–June. Over the same period, the share working in the secondary sector, including mining and quarrying, fell to 21.9% from 24.4%, while the share in services declined to 21.4% from 22.7%. In urban areas, the shares of workers in the secondary and services sectors remained broadly stable.
Rural self-employment increased to 62.7% of workers from 61.4% in the previous quarter. In urban areas, the share of regular wage and salaried workers rose to 49.6% from 49.3%. The share of casual workers declined in both rural and urban areas, both from the previous quarter and from a year earlier.
The National Statistics Office based its quarterly estimates on responses from 5,55,593 people. The bulletin is the sixth in the series under the survey methodology revised in January 2025, which provides monthly and quarterly labour market estimates for rural and urban India using the current weekly status framework.
