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ECONOMYINDIA

Unemployment Rate Inches Up to 4.8% in December 2025

Unemployment
Rural unemployment stayed flat at 3.9%, while urban unemployment rose to 6.7%.

India’s unemployment rate edged up slightly in December 2025, while participation in the labour market continued to improve, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation.

The overall unemployment rate (UR) for persons aged 15 years and above rose to 4.8% in December 2025, compared with 4.7% in November.

Rural unemployment remained unchanged at 3.9%, while urban unemployment increased to 6.7% from 6.5% a month earlier.

Among rural males, the UR stayed stable at 4.1%, while urban female unemployment eased slightly to 9.1% from 9.3%. The Worker Population Ratio (WPR) improved gradually, rising to 53.4% in December from 53.2% in November.

Rural male WPR increased to 76%, while urban male WPR slipped to 70.4%, taking the overall male WPR to 74.1%. Female WPR inched up to 33.6%, led by a marginal rise in rural areas.

The Labour Force Participation Rate (LFPR) continued its upward trend, climbing to 56.1% in December from 55.8% in November.

Rural LFPR rose to 59%, while urban LFPR dipped slightly to 50.2%.

The female LFPR improved to 35.3%, with rural participation increasing and urban participation declining marginally.

The December estimates are based on a survey of 3,73,990 individuals across the country. The PLFS methodology was revamped from January 2025 to provide higher-frequency labour market indicators, with the December bulletin marking the ninth release in the monthly series.

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