India's unemployment rate (INUNR=ECI) for individuals aged 15 and above declined to 5.1% in July, equalling its lowest level in the past four months, according to government data released on Monday.
The July figure also surpassed market expectations. Economists surveyed by Reuters had projected an unemployment rate of 5.4 percent for the month.
The decline comes as policymakers continue to focus on employment generation alongside economic growth, with the labour market remaining a key indicator of the strength and inclusiveness of the recovery.
The statistics derive from the Current Weekly Status indicator in India’s Periodic Labour Force Survey (PLFS) report, encompassing a total of 371,021 individuals across the country, with 211,411 residing in rural regions and 159,610 in urban areas.
The rural unemployment rate declined to 4.5% in July from 5.0% in June, while the urban jobless rate inched up to 6.7% from 6.6%, according to data from the National Statistics Office.
Among individuals aged 15 and older, the unemployment rate for men decreased to 5.0% in July from 5.3% in June, while the rate for women dropped to 5.4% from 5.9%.
The labour force participation rate which tracks the proportion of individuals aged 15 and above who are employed or actively looking for work increased to 55.4% in July from 54.4% in June, according to the National Statistics Office’s monthly Periodic Labour Force Survey bulletin.
The worker population ratio, which indicates the share of people who are employed, rose to 52.5% from 51.4%.
Female labour-force participation increased to 34.4% from 32.7% in June, largely due to a rise in rural women’s participation, which climbed to 38.8% from 36.6%.