Rural Unemployment Rate Declines to 4% in October-December 2025 Quarter
The latest quarterly data from the Periodic Labour Force Survey (PLFS) reveals encouraging trends in India's employment landscape, with rural areas showing significant improvement in job creation during the October-December 2025 period.
Key Findings from PLFS Quarterly Report
According to the survey data released on Tuesday, the unemployment rate among individuals aged 15 years and above in rural areas declined to 4% during October-December 2025, marking a notable decrease from 4.4% recorded in the previous July-September quarter. This improvement was driven by reductions in joblessness rates for both males and females across rural regions.
Urban employment metrics also showed positive movement, with the unemployment rate for the 15+ age group in urban areas easing to 6.7% during October-December 2025, compared to 6.9% in the preceding quarter. This urban improvement was primarily led by a decline in male unemployment, which fell from 6.2% in July-September to 5.9% in the subsequent three-month period.
Labour Force Participation Shows Upward Trend
The overall Labour Force Participation Rate (LFPR) for individuals aged 15 years and above increased marginally to 55.8% during October-December 2025, up from 55.1% in the previous quarter. This indicates a growing proportion of the working-age population actively engaging in the job market or seeking employment opportunities.
Particularly encouraging was the improvement in female workforce participation, with LFPR among women in the same age group rising to 34.9% during October-December 2025, representing a significant increase from 33.7% recorded during July-September 2025.
Self-Employment and Sectoral Distribution
The data reveals strengthening self-employment trends across both rural and urban areas:
- In rural regions, the share of self-employed workers increased to 63.2% during October-December 2025, up from 62.8% in the previous quarter
- Urban areas witnessed a marginal rise in self-employment, with the proportion increasing to 39.7% during October-December 2025 compared to 39.3% in the three months to July
Sectoral employment patterns showed stability with some notable shifts:
- The agriculture sector continued to dominate rural employment, accounting for 58.5% of employed persons aged 15 years and above during October-December 2025, up from 57.7% in the previous quarter
- In urban areas, the tertiary sector remained stable, engaging 61.9% of workers during the three months ending December 2025
Employment Numbers Show Substantial Growth
The quarterly employment figures demonstrate significant expansion in the workforce:
During the July-September quarter, an average of 56.2 crore persons were employed across the country, comprising 39.6 crore males and 16.6 crore females. This increased substantially to 57.4 crore during the three months to December 2025, with the breakdown showing 40.2 crore employed males and 17.2 crore employed females.
This represents a net addition of approximately 1.2 crore jobs between the two quarters, with both male and female employment showing healthy growth. The data suggests that employment generation is keeping pace with population growth while making incremental improvements in workforce participation rates, particularly among women.
