India's unemployment rate dips from 7% to 6.5% in 2025
What's the story
India's unemployment rate has improved, falling to 6.5% in 2025 from 7% a year earlier. The improvement is particularly notable among educated people aged above 15 years, indicating better employment conditions for this demographic. The data comes from the Periodic Labour Force Survey (PLFS) annual report for 2025 released by the Ministry of Statistics and Programme Implementation (MoSPI).
Demographic shifts
Urban female and youth unemployment improve
The PLFS report also highlights a decline in urban female unemployment, which fell to 6.4% in 2025 from 6.7% a year earlier. This indicates an improvement in women's participation and job absorption in cities. Youth joblessness (ages 15-29) also improved, falling to 9.9% from 10.3% a year earlier. Both rural and urban segments witnessed this positive trend.
Employment trends
Regular salaried employment increases
The PLFS report highlights a gradual shift in the nature of employment, with the share of workers in regular wage or salaried jobs rising to 23.6% in 2025 from 22.4% a year earlier. Sectorally, manufacturing and services sectors saw an increase in employment, while agriculture's share declined.
Wage growth
Female wages rise faster than men's
The PLFS report also notes an improvement in wage trends, especially for women. Nominal earnings have increased across categories with female wages growing faster than men's in several segments such as self-employment and salaried roles. This indicates improved wage trends for women in several segments, although gender gaps persist.