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India's unemployment rate remained unchanged at 5% in August 2025, with rural unemployment easing compared to the previous month. The overall labor force participation rate rose slightly to 55.6%, while urban participation remained steady at 50.4%. Rural participation, however, saw a notable increase to 58.2%, up from 58% in July.

Despite a general urban unemployment increase to 6.8% from 6.7% in July, rural unemployment fell to 4.1% from 4.5% in the same period. This shift was driven by a decline in rural male unemployment to 4.3% from 4.6% and a decrease in rural female unemployment to 3.9% from 4.3% in July. Among urban populations, male unemployment rose to 6.1% from 5.9%, while female unemployment remained stable at 8.9%.

Since January 2025, the labor force participation rate, worker population ratio, and unemployment rate at the national level have been updated monthly using the Current Weekly Status approach. The August figures are based on data collected from 370,160 respondents, with 211,363 in rural areas and 158,807 in urban areas.