Unemployment rate in July eases to three-month low of 5.2%

India's unemployment rate fell to a three-month low of 5.2% in July from 5.6% in June, with the decline more pronounced among women than men, official data released Monday showed.

The jobless rate among men and women eased to 5.3% and 5.1%, respectively, from 5.6% in June each.

In rural areas, the unemployment rate declined to 4.4% in July from 4.9% in the month before. Among rural males, the rate fell to 4.6% from 5.1%, while among rural females it dropped to 3.9% from 4.4%.


In contrast, the urban unemployment rate inched up slightly to 7.2% in July from 7.1% in June. Within cities, unemployment among men rose to 6.6% from 6.4%, but among women it eased to 8.7% from 9.1%.

The data reflects individuals aged 15 and above who were unemployed but actively seeking work. The figures are based on the current weekly status (CWS), which tracks whether individuals worked or looked for work in the seven days prior to the survey.

Youth unemployment (15-29 years), which had been climbing for three consecutive months, showed some relief in July, falling to 14.9% from 15.3% in June. The July survey covered 89,505 households and 379,222 people across rural and urban areas.

For the first quarter of FY26, the overall unemployment rate averaged 5.4%, according to the Periodic Labour Force Survey (PLFS) quarterly bulletin released by the ministry of statistics and programme implementation (MoSPI).

"By industry of work, the agriculture sector engaged the majority of rural workers (44.6% of men and 70.9% of women), while the tertiary sector was the largest source of employment in urban areas (60.6% of men and 64.9% of women)," the ministry said in a statement.

Rise in labour force participation

The labour force participation rate (LFPR) - the share of population working or seeking work - rose modestly to 54.9% in July from 54.2% in June. Male participation held steady at 77.1%, while female participation increased to 33.3% from 32%.

Among rural males, LFPR remained unchanged at 78.1% in July from the previous month, but for rural females it rose to 36.9% from 35.2% over the same period. In urban areas, male participation edged up to 75.1% from 75%, while female participation rose to 25.8% from 25.2%.

Youth LFPR also picked up slightly to 41.2% in July from 41% in June, with female youth participation rising to 21.1% from 20.6%, though male youth participation fell to 60.9% from 61%.Overall, the LFPR stood at 55% in Q1FY26, with male LFPR at 77.3% compared to female LFPR at 33.4%.