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India Jobless Rate Falls to 5.2% on Rural Farm Boost, Urban Rate Inches Up

Rising youth joblessness plus heavier reliance on rural self-employment raise quality concerns.

Overview

  • Official PLFS data for July–September (Q2 FY26) put the overall unemployment rate at 5.2% on a Current Weekly Status basis, down from 5.4% in Q1.
  • Rural unemployment dropped to 4.4% as the share of rural workers in agriculture rose to 57.7%, which the statistics ministry linked to Kharif operations.
  • Urban unemployment edged up to 6.9% even as the urban share of regular wage and salaried employment increased to 49.8%.
  • Youth unemployment (ages 15–29) rose to 14.8%, while the female labour force participation rate nudged up to 33.7%.
  • Self-employment in rural areas increased to 62.8%, and the release marked the second quarterly estimate under the revamped rotational-panel PLFS based on about 1.34 lakh households.