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India’s overall unemployment rate eases slightly to 3.1% in 2025: Govt survey

In rural areas, the unemployment rate eased to 2.4 per cent in 2025 from 2.5 per cent a year earlier

Periodic Labour Force Survey (PLFS) 2025, released by the Ministry of Statistics and Programme Implementation, showed the India’s overall unemployment rate (UR) for individuals aged 15 years and above eased slightly to 3.1 per cent in 2025 as compared to 3.2 per cent a year ago. It noted that the unemployment rate among females in the country remained unchanged at 3.1 per cent in 2025 as compared to the year-ago level, while for males it came down to 3.1 per cent in 2025 from 3.3 per cent in 2024. 

The survey showed in rural areas, the unemployment rate eased to 2.4 per cent in 2025 from 2.5 per cent a year earlier, while in urban areas it declined to 4.8 per cent in 2025 from 5 per cent in 2024. The female unemployment rate in rural areas remained low at 2.1 per cent, lower than the male unemployment rate in rural areas, which stood at 2.6 per cent. In urban areas, the male and female unemployment eased to 4.2 per cent and 6.4 per cent, respectively, contributed marginal decrease in overall urban UR to 4.8%.   

According to the survey, the percentage distribution of workers (in usual status) by status in employment indicates a modest shift in the composition of employment in 2025. The share of self-employment declined slightly from 57.5 per cent in 2024 to 56.2 per cent in 2025 at the overall level, with reductions observed for both male (52.9 per cent to 52 per cent) and female (66.5 per cent to 64.2 per cent). This moderation has been accompanied by an increase in the share of regular wage/salaried employment, which rose from 22.4 per cent to 23.6 per cent; the increase is visible for both male (25.4 per cent to 26.5 per cent) and female (16.6 per cent to 18.2 per cent). The share of workers engaged in casual labour has remained broadly stable at around one-fifth of total employment (20.0% in 2024 to 20.2% in 2025), with only marginal variations across gender.

It further highlighted that agriculture continues to account for the largest share of employment, though it has decreased from 44.8% in 2024 to 43% in 2025. The share of employment in construction has decreased marginally (12.3 per cent to 12 per cent), while manufacturing has seen improvement from 11.6 per cent to 12.1 per cent. Other services have also recorded an increase (12.2 per cent to 13.1 per cent).