India’s unemployment story took a positive turn in the final quarter of 2025. Official figures from the Ministry of Statistics show the rate for those 15+ dropping to lower levels compared to July-September. Rural unemployment hit 4 percent, a dip from 4.4 percent, thanks to better prospects for both genders. Urban areas mirrored this, with the rate at 6.7 percent versus 6.9 percent prior, as male urban unemployment fell to 5.9 percent.
Participation in the labor force grew to 55.8 percent, a solid increase that points to heightened economic engagement. Women’s involvement jumped impressively, with LFPR for ages 5+ reaching 34.9 percent from 33.7 percent—a sign of empowering shifts in female workforce entry.
The worker population ratio improved to 53.1 percent, building on rural progress from earlier quarters. Self-employment trends are encouraging: rural self-employed share rose to 63.2 percent, urban to 39.7 percent. Agriculture solidified its role, capturing 58.5 percent of rural hired workers.
This data arrives as policymakers grapple with structural job issues. The decline aligns with harvest season boosts and informal sector resilience. Yet, sustaining this beyond seasonal peaks remains crucial. Experts highlight self-employment growth as a buffer against formal job scarcity, urging investments in skills for broader gains.