India's Unemployment Rate Declines to 4.8% in Final Quarter of 2025
According to the latest data released by the Ministry of Statistics and Programme Implementation (MoSPI), India's unemployment rate decreased to 4.8% in the October-December 2025 quarter, down from 5.2% in the previous quarter ending September 2025. This positive trend was accompanied by a rise in the Labour Force Participation Rate (LFPR), which increased to 55.8% from 55.1% over the same period, indicating a larger fraction of the population actively seeking employment.
Salaried Employment Share Continues Downward Trend
Despite the overall improvement in unemployment figures, the share of salaried jobs for individuals aged 15 years and above declined to 24.9% in the last quarter of 2025. This marks a decrease from 25.4% in July-September 2025 and 25.5% in April-June 2025, suggesting that job creation is occurring more outside the salaried segment. Salaried employment is generally considered more desirable due to its provision of social security benefits and a regular income source, making this decline a point of concern for policymakers.
The reduction in salaried jobs was observed across all demographic groups, including rural males, rural females, and their urban counterparts. In contrast, the share of self-employed individuals rose to 56.3% from 55.8% in the previous quarter, while casual labor remained steady at 18.9% at the national level.
Agriculture Sector Sees Increase in Employment Share
The data from the Periodic Labour Force Survey (PLFS) report for October-December 2025 reveals a notable shift in sectoral employment. The share of agriculture sector jobs increased to 43.2% for those aged 15 and above, up from 42.4% in the July-September quarter. This rise was consistent across all segments, including males and females in both rural and urban areas.
Conversely, the secondary sector, which includes manufacturing, and the tertiary sector, comprising services, experienced declines in their employment shares, with the decrease being more pronounced in the tertiary sector. In urban areas, where salaried jobs typically dominate, accounting for nearly half of all employment, the share of salaried positions fell, while farm jobs increased to 6.7% from 6.3%.
Methodology and Context of the PLFS Report
The PLFS data is based on the Current Weekly Status (CWS) approach, which measures the activity status of individuals over the seven days preceding the survey date. This report for October-December 2025 represents the third quarterly edition under MoSPI's revamped PLFS methodology, with previous reports focusing solely on urban areas.
While the increase in LFPR is a positive indicator of economic engagement, the rising dependence on agriculture and the decline in salaried employment highlight structural challenges in India's job market. Policymakers may need to address these trends to ensure sustainable and quality employment growth in the coming quarters.
