NEW DELHI: India’s labour market displayed renewed strength in September 2025, with the national Labour Force Participation Rate (LFPR) rising to 55.3% which is the the highest level in five months according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office.
The improvement was largely underpinned by increased rural female participation, a welcome trend that has now sustained for three consecutive months.
Women’s LFPR climbed to 34.1% in September, with rural women accounting for the bulk of this rise. Participation among rural women jumped from 35.2% in June to 37.9% in September. This suggests a structural shift in rural employment dynamics in the country.
In contrast, urban female participation remained flat at 26.1%, highlighting persistent urban-rural disparities in women’s labour engagement.
The Worker Population Ratio (WPR), which measures the proportion of employed individuals in the total population, also improved, reaching 52.4%, its highest since May, shows the report.
The WPR among women rose from 30.2% to 32.3% overall, and from 33.6 to 36.3%among rural women, reflecting growing absorption of female workers. Male WPR edged up slightly to 73.2%, but it was the female workforce that drove the broader recovery.
Employment under the PLFS is assessed using two recall periods—Usual Status (365 days) and Current Weekly Status (7 days)—with employment defined as having worked at least one hour during the reference period.
Despite these gains, the Unemployment Rate (UR) inched up marginally to 5.2% in September, ending a two-month decline. Rural unemployment rose to 4.6% (from 4.3%), while urban joblessness ticked up to 6.8% (from 6.7%). Among women, the overall UR stood at 5.5%, with urban female unemployment climbing from 8.9 to 9.3%.
However, the National Statistical Office attributed the slight increase in unemployment to greater labour market participation rather than job losses—signalling growing dynamism and an expanding workforce, according to the survey.
The PLFS survey findings are based on a nationally representative sample of 3.75 lakh individuals surveyed across India, capturing both rural and urban employment trends.
