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Unemployment rate in India declines to 5% in August
Sep-16-2026

The Periodic Labour Force Survey (PLFS) data showed that the overall unemployment rate (UR) among persons aged 15 years and above dropped slightly to 5% in August from 5.1% in July, while it was 5.1% in August 2025. During August 2026, the rural unemployment rate has declined from 4.5% in July to 4.1%, while urban UR inched up to 6.8% from 6.7% in July. The August UR in rural areas was the lowest since January 2026. 

The overall UR among males aged 15 years and above declined for the third consecutive month, reaching 4.9% in August from 5.4% in May 2026. During the month, rural male UR declined from 4.6% in July to 4.3%, while urban male UR rose slightly to 6.1% from 5.9% in July. Besides, the UR among females aged 15 years and above declined for two consecutive months to 5.1% in August 2026 from 5.9Â % in June 2026. Rural female UR decreased from 4.3% in July to 3.9% in August, while urban female UR remained broadly stable compared to the previous month.

During the August, the overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.6% in August from 55.4% in July. A similar trend has also been observed in rural areas, where the LFPR for persons aged 15 years and above increased to 58.2% in August, from 58.0% in July. LFPR remained steady in urban areas at 50.4% in August, compared to the previous month.  The female LFPR increased for the second consecutive month, reaching 34.8% in August 2026.

The overall Worker Population Ratio (WPR) increased in the month of August to 52.8% from 52.5% in July, driven by increased workforce participation in rural areas. WPR in rural areas recorded an increase to 55.8% in August from 55.4% in the previous month, while urban WPR maintained the same level of 47% in August as observed in July. The overall WPR showed an increase of 0.6 percentage points over the corresponding month of the previous year, from 52.2% in August 2025 to 52.8% in August 2026. Further, a year-on-year comparison indicates an increase in the overall female WPR, with a 33% rise in August from 32% in August 2025.
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