India's unemployment rate drops to 5.1%

India's unemployment rate (UR) for individuals aged 15 years and older decreased to 5.1% in July 2026, down from 5.5% in June 2026. According to the Periodic Labour Force Survey (PLFS) Monthly Bulletin, both labour force participation and worker population ratios improved. Rural unemployment rate dropped significantly to 4.5% in July, from 5.0% in June, while urban unemployment rate remained steady at 6.7%, compared to 6.6% in the previous month.

Compared to July 2025, the overall and rural unemployment rates remained relatively stable, while the urban unemployment rate fell by 0.5 percentage points from 7.2%.