India’s unemployment rate among people aged 15 years and above fell marginally to 5.0% in August from 5.1% in July, while labour-force participation increased, according to the latest Periodic Labour Force Survey.

Rural unemployment fell to 4.1% from 4.5%, the lowest level recorded since January 2026. Urban unemployment, however, edged up to 6.8% in August from 6.7% in July and remained broadly stable compared with a year earlier.

The overall labour force participation rate rose to 55.6% in August from 55.4% in July. Rural labour force participation rate increased to 58.2% from 58.0%, while urban labour force participation rate remained unchanged at 50.4%.

Compared with a year earlier, overall labour force participation rate increased by 0.6 percentage point from 55.0% in August 2025. Rural labour force participation rate rose 1.2 percentage points to 58.2%, while urban labour force participation rate declined 0.5 percentage point from 50.9%.

Female labour-force participation continued to strengthen. Overall female labour force participation rate increased to 34.8% in August from 34.4% in July, driven by a rise in rural female participation to 39.4% from 38.8%. Urban female labour force participation rate was broadly stable at 25.4% compared with 25.3% in July.

On a year-on-year basis, overall female labour force participation rate increased by 1.1 percentage points from 33.7% in August 2025. Rural female labour force participation rate rose 2 percentage points to 39.4%, while urban female labour force participation rate declined 0.7 percentage point to 25.4%.

The worker population ratio, which measures the proportion of the population that is employed, increased to 52.8% in August from 52.5% in July, reaching its highest level since March 2026.

Rural worker population ratio rose to 55.8% from 55.4%, while urban worker population ratio remained unchanged at 47.0%.

Compared with August 2025, overall worker population ratio increased by 0.6 percentage point from 52.2%. Rural WPR rose 1.3 percentage points to 55.8%, while urban worker population ratio declined 0.5 percentage point from 47.5%.

The improvement in workforce participation was also reflected among women. Overall female worker population ratio increased to 33.0% in August from 32.5% in July and was 1 percentage point higher than 32.0% a year earlier. Rural female worker population ratio rose to 37.8% from 37.2%, while urban female worker population ratio increased marginally to 23.2% from 23.1%.

Male unemployment declined for the third consecutive month, reaching 4.9% in August from 5.0% in July. Rural male unemployment fell to 4.3% from 4.6%, while urban male unemployment increased marginally to 6.1% from 5.9%.

Overall female unemployment declined to 5.1% in August from 5.4% in July. Rural female unemployment fell to 3.9% from 4.3%, while urban female unemployment remained broadly stable at 8.9%.