The August reading was also lower than the 5.2% unemployment rate forecast by economists in a Reuters poll.
During the month, rural unemployment fell to 4.1% from 4.5% in July, while the urban unemployment rate remained largely stable at 6.8%, compared with 6.7% a month earlier.
On a year-on-year basis, the overall and urban unemployment rates were broadly unchanged in August. The rural unemployment rate, however, declined to 4.1% from 4.3% in August 2025, a fall of 0.2 percentage point.
The overall Labour Force Participation Rate (LFPR) for people aged 15 years and above rose marginally to 55.6% in August from 55.4% in July. Rural LFPR also increased to 58.2% from 58%, while the urban LFPR remained unchanged at 50.4% during the month.
Compared with August 2025, the overall LFPR increased by 0.6 percentage point to 55.6% from 55%. Rural LFPR rose by 1.2 percentage points to 58.2% from 57%, while urban LFPR declined marginally by 0.5 percentage point to 50.4% from 50.9%.