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India’s unemployment rate for people aged 15 years and above fell to 5% in August 2026, marking a six-month low, according to the latest data from the National Statistics Office (NSO) under the Periodic Labour Force Survey (PLFS). The rate was 5.1% in July. The August figure was also below the 5.2% forecast in a Reuters poll of economists.
The latest data showed that the improvement was driven mainly by rural areas, while unemployment in urban India became higher.
India’s unemployment rate fell to 5% in August 2026, a six-month low, according to PLFS data. Know the latest rural, urban, female and youth unemployment figures.
Rural Unemployment Declines
The rural unemployment rate degraded to 4.1% in August, from 4.5% in July. The August figure was the lowest since January 2026, according to the latest PLFS data.
Contrastingly, urban unemployment slipped slightly to 6.8%, compared with 6.7% in July. The paradoxical movement between rural and urban areas implied that the overall decline in unemployment was largely promoted by the rural labour market.
Labour Force Participation Grows
The data also showed a rise in the Labour Force Participation Rate (LFPR) for people aged 15 years and above. LFPR rose to **55.6% in August**, from 55.4% in July.
The LFPR measures the proportion of the population that is working or seeking and available for work. Rural LFPR increased to 58.2%, while the urban rate remained at 50.4%.
The **Worker Population Ratio (WPR)**, which considers the proportion of the population that is employed, also grew. It rose to 52.8% in August from 52.5% in July, with the rise mainly reflecting higher rural employment.
Female Unemployment Dips
The August figures featured a dip in unemployment among both men and women. The unemployment rate for men fell to 4.9%, compared with 5% in July, while the rate for women declined to 5.1% from 5.4%.
Female labour force participation also rose. The overall female LFPR rose to **34.8%**, from 34.4% in July. Rural female participation increased to 39.4%, while urban female participation stayed unmoved at 25.4%.
Youth Unemployment Stays Higher
Despite the improvement in the overall unemployment rate, joblessness among young people remained considerably higher. The unemployment rate for those aged 15-29 years fell to 15.1% in August, from 15.6% in July.
Youth joblessness was 18.5% among women and 13.9% among men. Urban youth unemployment stood at 18.7%, compared with 13.3% in rural areas.