Unemployment in India Hits 4.8% in December, Urban Areas Face Rising Pressure

Unemployment among people aged 15 and above in India rose marginally to 4.8% in December 2025, up from 4.7% in November, according to the latest Periodic Labour Force Survey (PLFS) released by the central government.

The report shows that unemployment in rural areas remained stable at 3.9%, while in urban areas it rose to 6.7%, highlighting increased employment pressure in cities compared to relatively steady conditions in villages.

Among rural men, unemployment held steady at 4.1%, while there was a slight improvement for urban women, whose unemployment declined from 9.3% to 9.1%.

The overall Labour Force Participation Rate (LFPR) increased from 55.8% to 56.1%. In rural areas, LFPR rose from 58.6% to 59%, whereas in urban areas, it slightly fell from 50.4% to 50.2%. Women’s LFPR also saw mixed trends: rural women’s participation increased from 39.7% to 40.1%, while urban women’s participation fell marginally from 25.5% to 25.3%.

The Workforce Participation Rate (WPR) also recorded slight gains. Rural men’s WPR rose from 75.4% to 76%, rural women’s from 38.4% to 38.6%, while urban men remained at 70.4% and urban women around 23%.

The central government implemented a new PLFS computation methodology from January 2025, offering more detailed and accurate insights into labour market indicators.

Experts say the data indicate rising pressure on urban job markets, but the overall improvement in LFPR and WPR suggests that people remain actively engaged in the workforce a positive sign for the economy.

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