India’s unemployment rate declined to a four-month low of 5.1 per cent in July, down from 5.5 per cent in June, as labour force participation and employment indicators improved, according to government data released on Monday.
The latest Periodic Labour Force Survey (PLFS) bulletin from the National Statistics Office showed the labour force participation rate (LFPR) rising to 55.4 per cent in July from 54.4 per cent a month earlier. The figure, which measures the share of the population either working or actively seeking employment, reached its highest level in four months.
The improvement was particularly strong in rural areas, where LFPR increased to 58 per cent from 56.6 per cent in June. Urban participation edged up to 50.4 per cent from 50.1 per cent.
India’s worker population ratio (WPR) also strengthened, rising to 52.5 per cent from 51.4 per cent — its first monthly increase since February. Rural WPR climbed to 55.4 per cent from 53.8 per cent, while the urban figure increased to 47 per cent from 46.8 per cent.
Employment indicators improved for both men and women. The male WPR rose to 73.3 per cent from 72.9 per cent, while the female rate increased to 32.5 per cent from 30.8 per cent. Rural female employment recorded a notable gain, with the WPR reaching a four-month high of 37.2 per cent, compared with 34.7 per cent in June.
The rural unemployment rate fell to 4.5 per cent in July from 5 per cent in June. Urban unemployment, however, remained broadly unchanged, edging up to 6.7 per cent from 6.6 per cent.
Unemployment among men declined to 5 per cent from 5.3 per cent, while the rate among women fell to 5.4 per cent from 5.9 per cent.
The figures are based on the PLFS current weekly status method, which measures a person’s employment activity during the seven days preceding the survey. The latest data indicate a strengthening labour market, with more people entering the workforce alongside a decline in the overall jobless rate.
