Jobs Improve in India as Unemployment Falls to 5.2% and Women’s Participation Grows

India’s latest labour force data shows unemployment easing to 5.2% between July and September 2025 driven by seasonal rural job growth and a steady rise in women joining the workforce.

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New Delhi: India’s job scene got a bit better between July and September this year, with fewer people out of work compared to earlier months. But the story isn’t the same everywhere.

Government figures released Monday show unemployment dropped to 5.2% in the quarter ending September. That’s down from 5.4% in the April-June period. The Periodic Labour Force Survey, which tracks employment trends, questioned over 5.64 lakh people nationwide to arrive at these numbers.

Here’s what’s interesting: villages are doing much better than cities. Rural unemployment fell sharply to 4.4% from 4.8% earlier. Meanwhile, urban areas saw joblessness inch up slightly—from 6.8% to 6.9%.

Farming season played a big role in rural job creation. With monsoon crops needing workers, more hands found work in agriculture. The survey found that 57.7% of rural workers were in farming during this period, up from 53.5% before.

The data also brings some good news about women joining the workforce. Female participation climbed to 33.7%, continuing a slow but steady rise from 33.4% last quarter. This means more women are either working or actively looking for jobs.

But cities tell a different story, especially for women. Urban female unemployment actually went up to 9% from 8.9%. For men in cities, it rose marginally from 6.1% to 6.2%.

Overall, about 56.2 crore Indians had jobs during this quarter. The Worker Population Ratio—essentially how many adults are actually employed—stood at 52.2%, a small jump from 52%.

Economists say the numbers reflect seasonal patterns. “Harvest time always boosts rural employment,” explains one analyst. “The challenge is creating stable, year-round jobs in both rural and urban areas.”

Service sector jobs dominated cities, accounting for 62% of urban employment. This includes everything from retail and restaurants to IT and banking.

What does this mean going forward? The rural rebound is encouraging, but it’s largely temporary. As farming season ends, those jobs will disappear. Cities need to generate more opportunities, particularly for educated youth and women seeking work.

Gender gaps remain stubborn. Despite more women entering the job market, they still face higher unemployment rates, especially in urban centers. This points to deeper issues around suitable job availability and workplace conditions.

The quarterly survey is part of the government’s effort to track employment more frequently and respond faster to labor market changes.

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