SYLLABUS
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context: The National Statistical Office (NSO), released the Periodic Labour Force Survey (PLFS) Monthly Bulletin for September 2025 to provide monthly estimates of employment and unemployment indicators across India.
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- The September 2025 PLFS bulletin marks the sixth monthly release under the revamped survey design initiated in January 2025.
- This redesigned PLFS follows a rotational panel sampling method, where each selected household is surveyed four times over four consecutive months to generate reliable monthly and quarterly labour market estimates.
- The report shows a consistent rise in labour force participation, especially among rural women, which has strengthened overall female workforce participation for the third consecutive month.
- The overall Labour Force Participation Rate (LFPR) has reached a five-month high, while the Worker Population Ratio (WPR) also shows the highest level since May 2025.
- A slight uptick in the Unemployment Rate (UR) was observed in September 2025, mainly due to increases in both rural and urban unemployment among men and women.
- The findings indicate that India’s rural economy is absorbing more female workers, reflecting a broader trend of economic inclusion and resilience in rural labour markets.
Key Highlights of the Survey
Labour Force Participation Rate (LFPR)
- The LFPR represents the proportion of the population (aged 15 years and above) that is either employed or actively seeking employment. It measures the active participation of the working-age population in the labour market.
- The overall LFPR increased to 55.3% in September 2025, marking a continued upward trend for the third consecutive month.
- The LFPR in rural areas rose from 56.1% in June 2025 to 57.4% in September 2025, reflecting stronger participation in agricultural and non-farm activities.
- The LFPR in urban areas remained steady at 50.9%.
- The female LFPR, driven by rural participation, reached 34.1%, the highest since May 2025. Rural female LFPR increased from 35.2% in June 2025 to 37.9% in September 2025, showing consistent month-on-month growth.
Worker Population Ratio (WPR)
- The WPR indicates the proportion of the working-age population that is employed, reflecting the actual extent of employment among those aged 15 years and above.
- The overall WPR stood at 52.4%, the highest level since May 2025.
- Rural WPR rose to 54.8%, while urban WPR was 47.4%, showing a higher employment intensity in rural areas.
- The increase in overall WPR was mainly driven by the steady growth of the female workforce in rural India.
- Rural female WPR improved from 33.6% in June 2025 to 36.3% in September 2025, marking three consecutive months of increase.
Unemployment Rate (UR)
- The UR measures the proportion of the labour force that is unemployed but actively seeking or available for work. It reflects the demand-supply balance in the labour market.
- The overall UR increased slightly to 5.2% in September 2025 from 5.1% in August 2025.
- The UR in rural areas rose to 4.6%, while in urban areas it reached 6.8%.
- Among urban females, unemployment increased to 9.3% from 8.9% in August 2025, indicating continued challenges in female urban employment.
- Male unemployment rates also increased moderately in both rural (4.7%) and urban (6.0%) regions after a temporary decline in August 2025.
Significance of the Report
- This report reflects India’s post-pandemic labour market recovery and the strengthening of rural economic activities.
- The steady rise in rural female participation highlights improving gender inclusion in productive work and economic empowerment in rural areas.
- Monthly estimates enable timely monitoring of employment trends, supporting evidence-based policy formulation and targeted job creation initiatives.
- The PLFS monthly series enhances the accuracy and responsiveness of labour statistics, helping align national employment policies with broader goals of inclusive and sustainable economic growth.