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India’s Unemployment Slips to 5.2% in July 2025 as Rural Hiring Picks Up.

Economy Business | Dated: 19 Aug 2025

India’s unemployment rate recently dropped to 5.2% in July 2025, down from 5.6% in June, according to the Ministry of Statistics and Programme Implementation (MoSPI). This improvement was primarily driven by stronger rural employment tied to agriculture and rising labour force participation.

🎯 Key Highlights:

  • - Rural unemployment fell to 4.4% in July, down from 4.9% in June, underlining robust seasonal hiring ahead of harvests and the festival season. Meanwhile, urban unemployment rose slightly to 7.2%, reflecting regional disparities in employment gains.
  • - Among youth aged 15–29, rural joblessness dropped to 13.0% from 13.8%, while urban youth unemployment edged up to 19.0% from 18.8%, signifying persistent challenges in city job markets.

💡 Other Important Facts:

  • (i) The Labour Force Participation Rate (LFPR) rose to 54.9% in July from 54.2% in June, indicating increased engagement in the workforce—an encouraging sign for inclusive employment recovery.
  • (ii) Since early 2025, India’s Periodic Labour Force Survey (PLFS) has been revamped, enabling monthly labour market data release for both rural and urban areas, and providing granular, timely insights for policy interventions.
  • (iii) Falling unemployment aligns with broader economic gains: India’s government is planning a GST cut by October to boost manufacturing and employment. Meanwhile, S&P upgraded India’s sovereign rating, citing robust growth and discipline amid rising trade frictions.

📚 Test Your Knowledge:

According to the Ministry of Statistics and Programme Implementation (MoSPI), India’s unemployment rate recently fell to what percentage in July 2025?

Correct Answer: 5.2%

🚀 Quick Recap: