India’s labour market showed renewed momentum in November 2025, with the unemployment rate easing to 4.7 per cent, its lowest level in seven months. The decline from 5.2 per cent in October reflects a combination of improving job creation and greater workforce participation, suggesting a gradual strengthening of employment conditions across the country.
The latest figures, released by the Ministry of Statistics and Programme Implementation (MoSPI) based on the Periodic Labour Force Survey (PLFS), cover individuals aged 15 years and above under the Current Weekly Status framework.
Rural Recovery Leads the Way
Rural India played a decisive role in the improvement. Rural unemployment fell to 3.9 per cent, marking a new low for the year. Seasonal agricultural activity, allied rural employment, and post-monsoon demand contributed to the trend.
Urban unemployment also declined, easing to 6.5 per cent, matching its lowest level recorded earlier this year. While urban hiring remains uneven, particularly in labour-intensive manufacturing, the services sector continued to provide support.
Participation Rises Alongside Employment
Importantly, the fall in unemployment was accompanied by higher participation, pointing to genuine labour market improvement rather than people exiting the workforce. The Labour Force Participation Rate (LFPR) rose to 55.8 per cent, the highest since April, while the Worker Population Ratio (WPR) increased to 53.2 per cent.
Rural participation strengthened further, while urban participation remained largely stable, indicating balanced labour market dynamics.
Women Enter Workforce in Greater Numbers
Women’s participation continued to improve, lending depth to the recovery. The female unemployment rate declined to 4.8 per cent, while the proportion of working women increased steadily, particularly in rural areas. For men, unemployment also eased to 4.6 per cent, reflecting broad-based gains.
Economists view rising female participation as a key structural positive for India’s long-term growth and productivity.
Youth and Job Quality Remain Key Challenges
Youth unemployment moderated slightly to 14.1 per cent, offering some relief, though it remains elevated. Analysts note that while more jobs are being created, a significant portion remains informal or self-employed, raising concerns around income stability, wages, and social security.
Cautious Optimism Going Forward
Overall, the November data suggest a labour market that is stabilising after earlier volatility. Falling unemployment combined with rising participation supports domestic consumption and economic resilience at a time of global uncertainty.
However, sustaining this momentum will depend on continued growth in manufacturing, construction, and services, along with steady public and private investment. The coming months will determine whether India’s improving job story can translate into durable, high-quality employment.