India's unemployment rate falls to 5.1% in July-September as rural joblessness declines: Govt

India's unemployment rate declined to 5.1 per cent during July-September 2026 from 5.4 per cent in the previous quarter, mainly due to a fall in unemployment in rural areas, according to government data released on Tuesday.

India's unemployment rate declined to 5.1 per cent during July-September 2026 from 5.4 per cent in the previous quarter, mainly due to a fall in unemployment in rural areas, according to government data released on Tuesday. The Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics and Programme Implementation (MoSPI), showed that rural unemployment fell to 4.3 per cent from 4.8 per cent in April–June 2026. However, unemployment in urban areas increased slightly to 6.8 per cent from 6.7 per cent.

The ministry stated, "Overall UR for persons of age 15 years and above improved to 5.1% during the current quarter, compared with 5.4% in the previous quarter." The data also showed that more people were working or looking for jobs during the quarter.

The share of people aged 15 years and above who were either employed or seeking employment increased to 55.5 per cent from 54.6 per cent in the previous quarter. In rural areas, this share rose to 58.1 per cent from 56.9 per cent, while in urban areas it decreased marginally to 50.4 per cent from 50.2 per cent.

The proportion of people who were actually employed also improved to 52.7 per cent from 51.7 per cent in the previous quarter. Rural employment participation increased to 55.6 per cent from 54.2 per cent, while the urban figure remained nearly unchanged at 46.9 per cent.

Women's participation in employment also improved. The proportion of women who were working or looking for jobs increased to 34.7 per cent from 33.2 per cent. The share of women who were employed rose to 32.8 per cent from 31.3 per cent during the same period.

The survey also showed an increase in the share of rural workers engaged in agriculture, rising to 56.7 per cent from 52.9 per cent in the previous quarter. The ministry stated, "In rural areas, the share of workers engaged in agriculture increased from 52.9% in April–June, 2026 to 56.7% in July–September, 2026."

Meanwhile, the share of self-employed workers in rural areas increased to 62.7 per cent from 61.4 per cent. In cities, the share of workers holding regular salaried jobs rose slightly to 49.6 per cent from 49.3 per cent. According to the ministry, an estimated 57.9 crore people aged 15 years and above were employed in India on average during July–September 2026. Of these, 40.5 crore were men and 17.4 crore were women. (ANI)