India's Unemployment Rate Dips to 5% in August 2026

New Delhi, Sep 15 (PTI) The overall unemployment rate (UR) among persons aged 15 years and above dropped slightly to 5 per cent in August, as per the Periodic Labour Force Survey (PLFS) data released on Tuesday.

According to an official statement, the overall UR among persons aged 15 years and above declined marginally from 5.1 per cent in July to 5 per cent in August.

The UR also stood at 5.1 per cent in August 2025.

During the same period, the rural unemployment rate decreased from 4.5 per cent to 4.1 per cent month-on-month, while urban UR remained almost stable at 6.8 per cent in August compared to 6.7 per cent in July.

Compared with August 2025, the overall UR and urban UR remained broadly stable in August 2026, whereas the rural UR declined by 0.2 percentage point to 4.1 per cent in August against 4.3 per cent in the same month a year ago.

Since January 2026, rural UR recorded its lowest level in August, it stated. 

The overall UR among males aged 15 years and above declined for the third consecutive month, reaching 4.9 per cent in the month under review from 5.4 per cent in May 2026.

The rural male UR declined from 4.6 per cent in July to 4.3 per cent in August, while urban male UR marginally rose from 5.9 per cent to 6.1 per cent during the same period.

Among females aged 15 years and above, overall UR declined for two consecutive months to 5.1 per cent in August 2026 from 5.9  per cent in June 2026.

Rural female UR decreased from 4.3 per cent in July to 3.9 per cent in August, while urban female UR remained broadly stable compared to the previous month.

A year-on-year comparison indicates that the overall unemployment rate for both males and females remained broadly unchanged in August 2026.

The overall male and female UR declined in August compared to July.

At the all-India level, the monthly estimates are based on information collected from a total of 3,70,160 persons surveyed.

The PLFS survey methodology has been modified from January 2025 to provide monthly and quarterly estimates of labour force indicators for the country.


The present Monthly Bulletin for August 2026 is the seventeenth in the series.

The overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.6 per cent in August from 55.4 per cent in July.  A similar trend has also been observed in rural areas, where the LFPR for persons aged 15 years and above increased to 58.2 per cent in August, from 58.0 per cent in July.

In urban areas, LFPR remained steady at 50.4 per cent in August, compared to the previous month.

Compared to the corresponding month of the previous year, the overall LFPR increased by 0.6 percentage points to 55.6 per cent, from 55 per cent in August 2025.

During the same period, rural LFPR also increased by 1.2 percentage points, from 57 per cent to 58.2 per cent, while urban LFPR experienced a marginal decline of 0.5 percentage points, from 50.9 per cent to 50.4 per cent.

The overall female LFPR experienced a moderate increase from 34.4 per cent in July to 34.8 per cent in August, mainly contributed by rural female LFPR, which increased to 39.4 per cent during the month under review from 38.8 per cent recorded in the previous month.

During the same period, female LFPR in urban areas was broadly stable at 25.4 per cent compared to 25.3 per cent in July.

Over the year, the female LFPR increased by 1.1 percentage points, from 33.7 per cent in August 2025 to 34.8  per cent in August 2026.

During the same period, female LFPR in rural areas increased by 2 percentage points, from 37.4 per cent to 39.4 per cent, while urban female LFPR declined by 0.7 percentage points, from 26.1 per cent to 25.4 per cent.

The female LFPR increased for the second consecutive month, reaching 34.8 per cent in August 2026.

The overall Worker Population Ratio (WPR) increased from 52.5 per cent in July to 52.8 per cent in August, driven by increased workforce participation in rural areas.

WPR in rural areas recorded an increase to 55.8 per cent in August from 55.4 per cent in the previous month, while urban WPR maintained the same level of 47 per cent in August as observed in July.

The overall WPR showed an increase of 0.6 percentage points over the corresponding month of the previous year, from 52.2 per cent in August 2025 to 52.8 per cent in August 2026.

During the same period, rural WPR increased by 1.3 percentage points from 54.5 per cent to 55.8 per cent, whereas the urban WPR stood at 47 per cent in August, down from 47.5 per cent in the year-ago period, registering a decline of 0.5 percentage points.

A year-on-year comparison indicates an increase in the overall female WPR, with a 33 per cent rise in August from 32 per cent in August 2025.