The drop was more pronounced among males, with the jobless rate falling to 3.1% in 2025 from 3.3% in 2024 and 3.7% in 2022, while the female rate held steady at 3.1% in 2025 and 2025, improving from 3.3% in 2022.
The ministry of statistics and programme implementation (MoSPI) said the trend reflects “sustained progress in reducing unemployment across sectors and genders”. The data covers individuals aged 15 years and above.
In rural areas, the unemployment rate eased to 2.4% in 2025 from 2.5% a year earlier and 2.8% in 2022, while in urban areas it declined to 4.8% from 5% and 5.9% over the same period.
Among educated persons (secondary and above), unemployment fell to 6.5% in 2025 from 7% in 2024.
Job seekers mainly reported applying directly to employers, responding to job advertisements, visiting factories or worksites, and seeking help from relatives and friends as the efforts undertaken to search for work.
Across states and union territories, Andaman & Nicobar Island recorded the highest unemployment rate at 10% in 2025, followed by Goa (8.3%), Lakshadweep (6.9%), Nagaland (6.7%), Arunachal Pradesh (6.6%), Delhi (5.9%) and Chandigarh (5.7%). Youth unemployment (15-29 years) declined to 9.9% in 2025 from 10.3% in 2024 and 10.9% in 2022.
The survey covered 1,148,634 persons across rural and urban areas.
Labour force participation rises
The labour force participation rate (LFPR), the share of population working or seeking work, edged down marginally to 59.3% in 2025 from 59.6% in 2024, but remained higher than 56.1% in 2022.
Female LFPR rose significantly to 40% in 2025 from 33.9% in 2022, while the male rate increased to 79.1% from 78%.
In urban areas, LFPR inched to 52.2% in 2025 from 50% in 2024, and in rural areas it picked up to 62.8% from 58.5%.
On average, 61.6 crore persons were employed in 2025, including 41.6 crore men and 20.0 crore women.
Among those outside the labour force, 69.8% of men cited wanting to continue studies as the main reason, while 44.4% of women cited childcare and household responsibilities.
Agriculture remained the largest source of employment, though its share decreased to 43% in 2025 from 44.8% in 2024. Meanwhile, manufacturing’s share improved to 12.1% from 11.6%, and employment in trade, hotel & restaurant rose to 12.9% from 12.5%.
Youth participation dipped slightly to 46% in 2025 from 46.3% in 2024, though it was above 43.2% in 2022.
Meanwhile, the worker population ratio (WPR), or employment rate, fell slightly to 57.4% in 2025 from 57.7% in 2024, but increased from 54.1% in 2022.
Wages, social security
Average wage/salary earnings of regular wage/salaried employees rose 17.5% to Rs 22,699 in 2025 from Rs 19,316 in 2022. Male earnings stood at Rs 24,217 in 2025, while female earnings were at Rs 18,353.
Earnings data reflects income from regular salaried work in the preceding month for those employed under the current weekly status (CWS), which is based on a person’s activity in the seven days before the survey.
However, social security coverage remains limited, as 58.2% of salaried workers had no written job contract, 47.3% were not eligible for paid leave and 51.7% lacked access to any specified social security benefit.
The social security benefits considered were pension, gratuity, health care/maternity benefits.
Additionally, 24.9% of individuals aged 15-59 in 2025 were not in employment, education or training.