Unemployment rate eases to 4.8% during Oct-Dec

India's unemployment rate eased to 4.8% in October-December 2025 from 5.2% in the previous quarter, with improvement across rural and urban areas, showed official data released on Tuesday. The jobless rate in rural areas declined to 4% in the December quarter from 4.4% in the preceding three-month period, while the rate in urban areas fell to 6.7% from 6.9%.

Male and female unemployment rates fell to 4.8% and 4.9%, respectively, from 5.2% each in the previous quarter.

Across states and union territories, Uttarakhand recorded the highest unemployment rate at 8.5% in the third quarter of this financial year, followed by Kerala (7.6%) and Jammu & Kashmir (7.4%).


The figures, based on the current weekly status, cover individuals aged 15 years and above who were unemployed but actively seeking work during the seven days preceding the survey. The survey covered 133,899 households and 561,108 people across rural and urban areas. Youth unemployment (among those aged 15-29 years) declined to 14.3% in October-December 2025 from 14.8% in the previous quarter, according to the Periodic Labour Force Survey (PLFS) quarterly bulletin released by the statistics and programme implementation ministry.

Labour force participation rises

The labour force participation rate (LFPR), the share of population working or seeking work, rose slightly to 55.8% in October-December from 55.1% in the previous quarter. Female participation improved to 34.9% from 33.7%, while male participation edged up to 77.6% from 77.2%.

During the quarter, 574 million persons were employed in the country-402 million men and 172 million women. The worker population ratio, or employment rate, increased to 53.1% from 52.2% in the previous quarter, with male and female rates at 73.9% and 33.1%, respectively.