India's unemployment rate declines to 5.2% in July
What's the story
India's unemployment rate has declined to 5.2% in July, down from 5.6% in June, according to the latest Monthly Bulletin of the Periodic Labour Force Survey (PLFS). The data was released by the Government of India on Monday. The report also indicates that the jobless rate stood at 5.4% during the April-June quarter of FY26, slightly higher than July's figure but lower than May and June's consistent rate of 5.6%.
Definitions
What is the Indian government's definition of unemployment rate?
The Indian government defines the unemployment rate as the percentage of unemployed persons in the country's labor force. The labor force is made up of employed individuals and those who are currently without work but actively seeking employment opportunities.
Economic indicators
Worker population ratio increases to 52%
In a positive sign for the economy, the Worker Population Ratio (WPR) for those aged 15 years and above has increased to 52% in July. This is the first increase in the ongoing financial year. The WPR is a key economic indicator that measures the percentage of employed persons in a given population, and its rise indicates an improving job market.
Participation rate
Labor force participation rate rises to 54.9%
Along with the WPR, the Labor Force Participation Rate (LFPR) for the same age group has also seen a significant rise to 54.9% in July 2025. The LFPR is defined as the percentage of labor force in total population and its increase indicates more people are either working or actively looking for work, further strengthening India's economic recovery and growth prospects.