SYLLABUS

GS-3: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

Context: India’s labour market ended 2025 with record female participation and steady employment indicators as monthly PLFS data showed rising workforce engagement despite a stable unemployment rate.

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• The data has been released through the Monthly Bulletin of the Periodic Labour Force Survey (PLFS) for December 2025.

• The survey is conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

• December 2025 bulletin is the ninth monthly release after the PLFS methodology was revised from January 2025 to provide monthly and quarterly labour estimates.

• The estimates are based on the Current Weekly Status (CWS) approach, under which a person is considered:

• Employed if they worked for at least 1 hour on any day during the 7 days preceding the survey date.
• Unemployed if they did not work even for 1 hour during the last 7 days but were seeking or available for work.

Key Labour Market Indicators 

• Labour Force Participation Rate (LFPR):

• The overall LFPR rose to 56.1%, the highest level recorded in 2025.
• Rural LFPR increased to 59.0%, reflecting higher participation in villages. Urban LFPR declined marginally to 50.2%, indicating softer labour engagement in cities.

• Female Labour Force Participation

• Female LFPR reached a yearly high of 35.3% in December 2025.
• Rural female LFPR increased to 40.1%, continuing its upward trend since June 2025.
• Urban female LFPR slipped slightly to 25.3%, showing divergence between rural and urban areas.

• Worker Population Ratio (WPR)

• The overall WPR improved to 53.4%, marking the highest level in 2025.
• Rural male WPR rose to 76.0%, indicating strong employment absorption.
• Rural female WPR increased to 38.6%, reflecting better workforce inclusion.
• Urban male WPR declined to 70.4%, while urban female WPR remained around 23.0%.

• Unemployment Rate (UR)

• The overall unemployment rate remained broadly stable at 4.8%.
• Rural UR stayed unchanged at 3.9%, indicating steady rural employment conditions.
• Urban UR increased to 6.7%, reflecting continued stress in urban labour markets.
• Urban female UR declined to 9.1%, down from its yearly peak of 9.7% in October 2025.

Survey Coverage and Methodology

• The monthly estimates are based on a sample of over 3.7 lakh persons across India.
• The survey covered 2,13,216 persons in rural areas and 1,60,774 persons in urban areas.
• Under the CWS approach, a person’s activity status is measured based on work done during the preceding seven days.

Source:
PIB
Indian Express
Policyedge