Unemployment rate in country stands at 5% in September, stable compared to August: NSO

The Unemployment Rate (UR) in the country stood at 5% in September, stable compared to August, according to the Periodic Labour Force Survey (PLFS) conducted by the National Statistics Office (NSO). The Ministry of Statistics and Programme Implementation said here in a release on Thursday that the rural UR remained “broadly stable” at 4.2%, against 4.1% in August, while urban UR marginally rose from 6.8% in August to 6.9% in this month. “Compared with September 2025, the overall UR declined by 0.2 percentage points and reached at 5% in September 2026. Rural UR declined by 0.4 percentage points, from 4.6% in September, 2025 to 4.2% in September 2026. UR in urban areas remained broadly stable from 6.8% in September 2025 to 6.9% in September 2026,” the Ministry said.

Among females, the overall UR remained at 5.2%, up from 5.1% in August. Rural female UR stood at 3.9%, which, according to the government, is its lowest level in 2026, while urban female UR rose marginally from 8.9% to 9.2%. The government said unemployment rates declined year-on-year for both genders. The PLFS is the primary source of data on labour force participation and employment and unemployment conditions. At the all-India level, the monthly estimates are based on information collected from 3,70,513 persons surveyed.

The overall Labour Force Participation Rate (LFPR), for persons aged 15 years and above, remained at 55.5% in September, compared to 55.6% in August. “In rural areas, LFPR was recorded at 58% against 58.2% in August 2026, while the urban LFPR registered a moderate increase of 0.3 percentage points, rising from 50.4% in August, 2026 to 50.7% in September 2026,” the Ministry said. Compared to September 2025, the overall LFPR increased by 0.2 percentage points, from 55.3% to 55.5%. The rural LFPR increased by 0.6 percentage points in one year, from 57.4% to 58%, while urban LFPR registered a marginal decline of 0.2 percentage points, from 50.9% to 50.7%. Overall female LFPR stood at 34.6% in September 2026, compared with 34.8% in August 2026. “Urban female LFPR recorded a notable month-on-month increase of 0.5 percentage points, rising from 25.4% to 25.9% and reaching its highest level since October 2025. Rural female LFPR estimated at 38.9% in September 2026 against 39.4% in the previous month,” the release added. Overall female LFPR increased by 0.5 percentage points, from 34.1% in September 2025 to 34.6% in September 2026.

The overall Worker Population Ratio (WPR) remained at 52.7% in September 2026, compared with 52.8% in August 2026. Overall WPR increased by 0.3 percentage points, from 52.4% in September 2025 to 52.7% in September 2026.