India’s unemployment rate falls to four-month low of 5.1% in July, rural jobs drive gains

New Delhi: India's unemployment rate fell to a four-month low of 5.1% in July, down from 5.5% in June, driven largely by a job boost in rural areas, official data released Monday showed.

Rural jobless rate declined to 4.5% in July from 5% in June, while urban unemployment edged up slightly to 6.7% from 6.6%.

The improvement was more pronounced among women, whose unemployment rate fell to 5.4% in July from 5.9% in June. For men, the rate declined to 5% from 5.3%, according to the Periodic Labour Force Survey (PLFS) released by the ministry of statistics and programme implementation.


"Both male and female UR (15 years and above) declined in July 2026 compared with the previous month, indicating an improvement in employment conditions across both genders," the ministry said in a statement.

The data covers individuals aged 15 years and above who were unemployed but actively seeking work. It is based on the current weekly status (CWS), which measures employment or job-seeking activity over the seven days preceding the survey.

Youth unemployment (15-29 years) also improved to 15.6% in July from 16.2% in June. The rate for young men declined marginally to 14.2% from 14.6%, while the rate for young women fell more sharply to 19.5% from 20.7%.

The survey covered 89,069 households and 371,021 individuals across rural and urban areas.

Labour participation stable

The labour force participation rate (LFPR), the share of the population working or seeking work, rose to 55.4% in July from 54.4% in June.

The worker population ratio (WPR), or employment rate, also increased to 52.5%, marking its first rise since February. Male WPR edged up to 73.3%, while female WPR rose to 32.5%.