India’s December unemployment rate rises to 4.8%:Govt’s survey finds joblessness rate higher in urban areas than rural

India’s unemployment rate ticked up a bit in December 2025, reaching 4.8%. This means that out of every 100 people aged 15 and older who are looking for work, nearly five persons couldn’t find a job. In November 2025, that metric was slightly lower, at 4.7%. The data comes from the Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics and Programme Implementation (MoSPI). Higher in urban areas than rural The job situation looks a little different depending on where you live. In rural areas, the unemployment rate stayed about the same, at 3.9%. But in cities, it rose from 6.5% to 6.7%. More People Working in Rural Areas The number of people who are employed, as a percentage of the total population, is called the Worker Population Ratio (WPR). This number went up slightly in December. In rural areas, more men were employed (76% in December compared to 75.4% in November). However, in cities, the percentage of employed men decreased slightly. More women in rural areas are also finding work. More People Seeking Work The Labour Force Participation Rate (LFPR) tells us what percentage of people are either working or actively looking for a job. This number increased overall, reaching 56.1% in December, compared to 55.8% in November. This indicates that more people are willing and able to work. Rural areas saw a bigger increase in LFPR than urban areas. More women are also participating in the workforce.
Overall, the data paints a picture of a job market that’s holding steady, with some positive signs. More people are participating in the workforce, especially in rural areas. While unemployment did increase slightly, the changes are small. The government is using a revamped method to collect this data since January 2025, aiming for more accurate and frequent updates on the job market.