India’s unemployment rate falls to four-month low of 5.1% in July

18 Aug 2026 Evaluate

Periodic Labour Force Survey (PLFS) has showed that India's unemployment rate (UR) for persons aged 15 years and above fell to a four-month low of 5.1 per cent in July 2026, from 5.5 per cent in June 2026. In rural areas, the UR decreased sharply to 4.5 per cent in July 2026 from 5.0 per cent in the previous month. During the same period, the urban UR remained almost steady at 6.7 per cent compared to 6.6 per cent. Compared with July 2025, the overall UR and rural UR remained broadly stable in July 2026, whereas the urban UR decreased by 0.5 percentage point from 7.2 per cent in July 2025. The PLFS is conducted by National Statistics Office, Ministry of Statistics and Programme Implementation.

The overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.4 per cent in July, 2026, from 54.4 per cent in June, 2026. After declining from March to May, 2026 and remaining unchanged in June, 2026, the overall LFPR increased in July, 2026. The same trend was also observed in rural areas, where the LFPR for persons aged 15 years and above increased to 58.0 per cent in July, 2026, from 56.6 per cent in June, 2026, registering an increase of 1.4 percentage points. In urban areas, LFPR increased marginally, from 50.1 per cent in June, 2026 to 50.4 per cent in July, 2026. Compared to the same month of the previous year, the overall LFPR increased by 0.5 percentage point, from 54.9 per cent in July, 2025 to 55.4 per cent in July, 2026. During the same period, rural LFPR also increased by 1.1 percentage points, from 56.9 per cent to 58.0 per cent while urban LFPR experienced a marginal decline by 0.3 percentage point, from 50.7 per cent to 50.4 per cent.

The overall female LFPR experienced a noticeable increase from 32.7 per cent in June, 2026 to 34.4 per cent in July, 2026. During the same period, rural female LFPR increased from 36.6 per cent to 38.8 per cent and urban female LFPR increased from 24.8 per cent to 25.3 per cent. Compared to July, 2025, the overall female LFPR increased by 1.1 percentage points, from 33.3 per cent to 34.4 per cent in July, 2026. In rural areas, female LFPR rose by 1.9 percentage points, from 36.9 per cent to 38.8 per cent, while urban female LFPR declined marginally by 0.5 percentage point, from 25.8 per cent to 25.3 per cent.

The Worker Population Ratio (WPR) in the age group 15 years and above showed a broadly improving trend in July, 2026 across sectors. The overall WPR increased to 52.5 per cent in July, 2026 from 51.4 per cent in June, 2026. In rural areas, WPR increased to 55.4 per cent in July, 2026 from 53.8 per cent in June, 2026, indicating an increase of 1.6 percentage points. WPR in urban areas increased marginally to 47.0 per cent from 46.8 per cent during the same period. Notably, rural female WPR increased by 2.5 percentage points from 34.7 per cent in June, 2026 to 37.2 per cent in July, 2026 and urban female WPR increased from 22.7 per cent to 23.1 per cent during the same period.

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