Blitz Bureau
NEW DELHI: India’s unemployment rate held steady at 5.2 per cent in October even as more people entered the labour market, underscoring a phase of stability marked by widening contrasts between rural and urban job conditions.
Fresh estimates from the Periodic Labour Force Survey (PLFS) show that the overall jobless rate for those aged 15 and above, measured under the current weekly status, remained unchanged from September. The survey, conducted across more than 89,000 households and over 3.7 lakh individuals, highlights easing stress in rural areas but continued pressure in cities.
Rural calm, urban strain
Rural unemployment eased to 4.4 per cent from 4.6 per cent in the previous month, supported partly by seasonal farm work after the monsoon and a rise in self-employment. In contrast, urban unemployment climbed to 7 per cent from 6.8 per cent, a sign that non-farm sectors are yet to regain full momentum.
Quarterly figures for July–September present a similar pattern. The all-India unemployment rate under the usual status slipped to 5.2 per cent from 5.4 per cent in the preceding quarter. Rural unemployment declined more sharply, while urban joblessness edged up to 6.9 per cent.
More women joining workforce
The PLFS data points to a noteworthy rise in women’s participation. India’s labour force participation rate increased to 55.4 per cent in October, the highest in six months. Female participation rose to 34.2 per cent, while male participation improved to 77.4 per cent. The worker population ratio — a measure of the share of working people in the population — also ticked up slightly to 52.5 per cent.
On a quarterly basis, women’s participation has shown steady gains, particularly in rural regions where more women are taking up agricultural and allied work. Economists, however, caution that much of this rise reflects informal, low-paying activities rather than secure, salaried employment. Independent assessments continue to place India’s female workforce participation among the lowest in the G20.
Youth joblessness still high
Youth unemployment remains a persistent concern. Though the jobless rate among those aged 15–29 dipped marginally to 14.9 per cent in October, it still stands nearly three times the overall unemployment figure. Male youth unemployment edged up slightly to 14 per cent, while the rate for young women fell to 17.1 per cent from 17.8 per cent.
In several states, particularly in northern and hill regions, youth unemployment remains substantially higher. Urban female youth face some of the most severe challenges, with jobless rates touching extremely high levels in certain pockets.
Stability masks deeper concerns
While the combination of a steady unemployment rate and rising labour participation suggests the economy is absorbing a larger workforce, the quality of available jobs remains a source of worry. Much of the recent increase in employment is centred in agriculture, construction, and low-productivity service sectors. These avenues, though important, offer limited income security and are often vulnerable to seasonal swings.
Urban labour markets continue to face pressure, especially among educated jobseekers. Many young people move between temporary assignments, competitive exam preparation, or unpaid family work — patterns that official unemployment figures may not fully capture.
A new policy push
The Government is attempting to address some of these imbalances. In July, the Union Cabinet approved a ₹1-trillion Employment-Linked Incentive scheme aimed at generating more than 35 million jobs between August 2025 and July 2027.
The programme offers a one-time wage subsidy for first-time workers and monthly incentives for employers who expand and retain their workforce, with additional support for manufacturing jobs.
The scheme is designed to complement existing industrial initiatives such as the Production-Linked Incentive framework, which has already contributed significantly to employment in electronics, autos, and other sectors.
For now, the data indicates that India’s labour market is holding firm. More people are seeking work, women’s participation is improving, and joblessness is not rising sharply. Yet the divide between rural and urban employment, the stubbornly high youth jobless rate, and the continued dominance of informal work highlight the long road ahead.
The real test will lie in whether new policy measures can translate India’s economic momentum into stable, broad-based job creation — particularly for the young and for women — at a time when millions enter the labour force every year.