India’s job market showed encouraging signs of improvement in the July–September 2025 quarter as the unemployment rate fell to 5.2% from 5.4% in the previous quarter (April–June), according to data released by the Ministry of Statistics. The figures reflect an overall strengthening in rural and urban employment, supported by agricultural activities and expanding opportunities in the services sector.
Rural Jobs See Strong Momentum from Kharif Season
The surge in rural employment during this quarter was primarily attributed to Kharif agricultural operations, which significantly boosted job creation in the countryside. The share of rural employment in agriculture rose sharply from 53.5% to 57.7%, marking a healthy seasonal uptick. This increase highlights the crucial role of agriculture in providing employment stability during key farming periods and supporting rural livelihoods.
Alongside the agricultural boost, the proportion of self-employed workers in rural areas also recorded a notable rise—moving from 60.7% in April–June to 62.8% in July–September—indicating a stronger dependence on farm-based and small-scale enterprises for income generation.
Urban Employment Records Steady Growth in the Tertiary Sector
While rural areas witnessed seasonal growth, urban employment also registered an upward trend. The tertiary sector’s share—comprising services such as trade, education, healthcare, and technology—rose modestly from 61.7% to 62%, reflecting gradual but consistent urban job creation.
Moreover, the proportion of regular wage employees in urban India improved slightly, climbing from 49.4% to 49.8%. This stability in the formal job segment points towards a steady revival of employment in industries and service-based enterprises.
Rise in Female Workforce Participation and Employment Ratios
A key highlight of the report is the increase in female participation across multiple employment indicators. The female worker-population ratio (WPR) showed improvement across both rural and urban regions, suggesting a stronger presence of women in the workforce.
Similarly, the female labour force participation rate (LFPR) rose from 33.4% in April–June to 33.7% in July–September, marking continued progress in gender inclusion within the job market. Analysts view this rise as a reflection of growing economic opportunities and changing socio-economic dynamics encouraging women to join or rejoin the workforce.
Labour Force Participation and Employment Indicators Point to a Broader Recovery
The overall Labour Force Participation Rate (LFPR)—a key indicator of the working-age population actively engaged in the job market—registered a marginal increase from 55% to 55.1% during the July–September quarter. At the same time, the Worker Population Ratio (WPR) also rose slightly from 52% to 52.2%, reinforcing the trend of gradual but steady improvement in employment conditions.
Data further showed that the upward trajectory in LFPR has been consistent for three consecutive months, reaching a five-month high of 55.3% in September 2025. This pattern suggests that both rural and urban economies are witnessing a broader recovery, driven by seasonal factors, urban resilience, and a gradual normalization of labour demand.
Signs of Sustained Economic Stability
Economists interpret these figures as a sign of underlying economic stability and resilience in the face of fluctuating global conditions. The simultaneous rise in agricultural employment, self-employment, and formal job creation in urban sectors points to a balanced growth pattern across India’s diverse labour market.
However, experts caution that sustaining this momentum will require continued policy focus on job diversification, skilling initiatives, and female workforce integration to maintain inclusive growth.
