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India Jobless Rate Slips to 3.1% in 2025 as PLFS Shows More Salaried Work

The new survey points to modest gains with lingering gaps in job quality such as limited benefits, slower informal pay growth.

Overview

  • India’s statistics ministry released the 2025 Periodic Labour Force Survey on Friday, reporting unemployment at 3.1% with rural at 2.4% and urban at 4.8%.
  • The labour force participation rate held at 59.3% for people aged 15 and older while the worker population ratio stood at 57.4%, signaling a steady scale of people working or seeking work.
  • The share of regular salaried jobs rose to 23.6% as self-employment eased to 56.2% and agriculture’s job share fell to 43.0%, pointing to a gradual shift toward manufacturing and services.
  • Women’s earnings grew faster than men’s across job types in 2025, yet large gaps persisted with women earning 76% of men’s pay in salaried roles and only 36% in self-employment.
  • A separate government survey of unincorporated businesses showed slower informal-sector momentum in 2025 as wages rose 3.9% and net new establishments and jobs fell, which could limit hiring for lower-income workers.