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India's Unemployment Rate Drops in Q3, Rural & Urban Areas See Improvement

India's unemployment rate for individuals aged 15 and above declined in the October-December 2025 quarter compared to the previous three months. The improvement was seen in both rural and urban areas, with rural unemployment falling to 4% and urban to 6.7%. Key employment indicators like the Labor Force Participation Rate and the Worker Population Ratio also showed positive growth during this period. Additionally, self-employment increased in both rural and urban settings, and the agriculture sector strengthened its dominance in rural employment.

Key Points: India's Unemployment Rate Declines in Oct-Dec Quarter

  • Rural unemployment fell to 4%
  • Urban unemployment dropped to 6.7%
  • Female labor force participation rose notably
  • Overall labor force participation increased
  • Self-employment saw growth in both areas
2 min read

India's unemployment rate declines in October-December quarter

India's unemployment rate fell to 4% in rural and 6.7% in urban areas in Oct-Dec 2025. Female labor force participation also saw a notable rise.

"The unemployment rate in rural areas declined to 4 per cent in October-December 2025, from 4.4 per cent in the previous quarter - Ministry of Statistics"

New Delhi, Feb 10

The unemployment rate among persons aged 15 years and above in India declined in the October-December quarter, both in rural and urban areas, compared to the previous July-September quarter of 2025-26, according to data released by the Ministry of Statistics on Tuesday.

The unemployment rate in rural areas declined to 4 per cent in October-December 2025, from 4.4 per cent in the previous quarter, driven by a reduction in UR for both rural male and female. The urban unemployment rate for persons aged 15 years and above decreased to 6.7 per cent as compared to 6.9 per cent reported in the previous quarter, driven by a decline in urban male UR from 6.2 per cent during July-September to 5.9 per cent in the current quarter, the official figures showed.

The overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.8 per cent during October-December, compared to 55.1 per cent in the previous quarter, reflecting the increased employment.

Female LFPR (15 years and above) recorded a notable rise to 34.9 per cent in October-December 2025, up from 33.7 per cent during July-September 2025.

The Worker Population Ratio (WPR ) for persons aged 15 years and above, another indicator of employment, improved from 52.2 per cent in July-September 2025 to 53.1 per cent in October-December 2025.

The Rural WPR for persons aged 15 years and above continued to show a steady upward trend across both genders during April-June 2025 to October-December 2025.

Self-employment experienced a rise in both rural and urban areas. Self-employed persons of age 15 years and above in rural areas increased to 63.2 per cent during October- December, up from 62.8 per cent recorded in the previous quarter. In urban areas, self-employed persons of the same age group were reported as 39.7 per cent during the October-December quarter compared to 39.3 per cent during the previous quarter.

The agriculture sector continued to dominate rural employment, accounting for 58.5 per cent of employed persons aged 15 years and above during the quarter, up from 57.7 per cent in the previous quarter.

- IANS

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Reader Comments

R
Rohit P
Good to see the numbers improving, but we must look beyond percentages. The fact that agriculture still employs nearly 60% in rural areas shows the lack of diversification. We need more manufacturing and service sector jobs in tier-2 and tier-3 cities for sustainable growth.
P
Priya S
The increase in self-employment is a double-edged sword. While it shows entrepreneurial spirit, many are forced into it due to lack of formal jobs. We need better support for MSMEs and gig workers with proper social security. The data is positive, but the ground reality can be tough.
S
Sarah B
As someone who recently moved to Bangalore for work, the urban unemployment rate dropping even slightly is a relief. The tech sector seems to be picking up again after a slow phase. Hope the momentum continues into the new financial year!
V
Vikram M
Rural unemployment at 4% is a significant achievement. Festive and harvest season in Oct-Dec always gives a boost. The real test will be the Jan-Mar data. Government schemes in rural infrastructure seem to be having an impact. Jai Kisan! 👨‍🌾
K
Karthik V
While the headline is positive, the urban rate at 6.7% is still high, especially for youth. We need faster job creation in the organized sector. The PLI schemes need to show results on the ground soon. Data is good, but let's not become complacent.

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