New Delhi [India], September 15 : India’s unemployment rate among people aged 15 years and above declined marginally to 5.0 per cent in August 2026 from 5.1 per cent in July, with rural unemployment falling to 4.1 per cent, the lowest level recorded since January this year, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI).
The overall unemployment rate (UR) under the Current Weekly Status (CWS) approach remained broadly stable compared with August 2025, while the rural unemployment rate declined by 0.2 percentage point from 4.3 per cent a year ago to 4.1 per cent in August 2026. Urban unemployment, however, edged up marginally to 6.8 per cent from 6.7 per cent in July.
The decline in overall unemployment came alongside a rise in labour force participation and the worker population ratio. The overall Labour Force Participation Rate (LFPR) for people aged 15 years and above increased to 55.6 per cent in August from 55.4 per cent in July, while the Worker Population Ratio (WPR) rose to 52.8 per cent from 52.5 per cent.
Rural areas drove much of the improvement in labour market indicators. Rural LFPR increased to 58.2 per cent in August from 58.0 per cent in July, while rural WPR rose to 55.8 per cent from 55.4 per cent. Urban WPR remained unchanged at 47.0 per cent during the month.
The unemployment rate also declined across both male and female workers in rural areas. Overall male unemployment fell for the third consecutive month to 4.9 per cent in August from 5.4 per cent in May. Rural male unemployment declined to 4.3 per cent from 4.6 per cent in July.
Among women, the overall unemployment rate fell for the second consecutive month to 5.1 per cent in August from 5.9 per cent in June. Rural female unemployment declined to 3.9 per cent from 4.3 per cent in July, while urban female unemployment remained broadly stable.
Meanwhile, female labour force participation continued to improve, with the overall female LFPR rising to 34.8 per cent in August from 34.4 per cent in July and 33.7 per cent a year earlier. Rural female LFPR increased to 39.4 per cent from 38.8 per cent in July.
The August PLFS estimates are based on information collected from 3,70,160 persons, including 2,11,353 people surveyed in rural areas and 1,58,807 in urban areas.