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India’s Jobless Rate Falls to 4.8% in Oct–Dec, Marking a Third Straight Quarterly Drop

PLFS data point to rising participation with more workers in self-employment, prompting concerns over job quality.

Overview

  • - Rural unemployment eased to 4.0% and urban to 6.7% in the October–December 2025 quarter, both down from the previous three months.
  • - The labour force participation rate rose to 55.8%, with female participation climbing to 34.9%, driven largely by gains among rural women.
  • - The share of regular wage or salaried employment slipped to 24.9% as self-employment expanded to 56.3%, indicating a shift toward less formal work.
  • - Youth unemployment for ages 15–29 declined to 14.3%, remaining well above the headline rate despite the improvement.
  • - State-level disparities persisted, with Uttarakhand posting the highest unemployment rate at 8.5%, followed by Kerala at 7.6% and Jammu & Kashmir at 7.4%.