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
