Unemployment in September rose to 5.3% as women faced sharper job losses

Unemployment rate for September

The unemployment rate inched up to a three-month high of 5.3 percent in September from 5.1 percent in August, according to the Periodic Labour Force Survey (PLFS) monthly bulletin released on October 15, owing to faster pace of joblessness among women.

While rural unemployment stood at 4.6 percent, the rate was significantly higher in urban India at 6.8 percent.

Women Face Steeper Rise

Among women, unemployment increased to 5.5 percent nationally as against 5.3 percent in August. The spike was sharper in cities, as urban female unemployment climbed to 9.3 percent versus 9 percent a month ago.

Participation and Employment Indicators

The Worker Population Ratio (WPR) - a measure of employed persons as a share of the population - held steady at 39.6 percent.

The Labour Force Participation Rate (LFPR) rose slightly to 41.8 percent, suggesting that the uptick in unemployment was driven more by new entrants to the job market than by actual job losses. However, the pattern differed for urban women. Despite a marginal dip in their labour force participation - to 20.9 percent from 21 percent - their unemployment rate rose, indicating that fewer available jobs met the rising supply of educated women workers.

In rural areas, women’s participation continued to climb, rising from 28 percent to 28.5 percent in September.

Youth Joblessness Remains High

Unemployment among India’s youth (aged 15-29 years) stayed elevated at 15 percent, underscoring persistent challenges in creating opportunities for young workers.

Urban youth faced even greater stress, with unemployment at 18.5 percent, and young women recording the highest joblessness at 26.4 percent.