New Delhi: The overall unemployment rate (UR) among persons aged 15 years and above dropped slightly to 5 percent in August, as per the Periodic Labour Force Survey (PLFS) data released on Tuesday.
According to an official statement, the overall UR among persons aged 15 years and above declined marginally from 5.1 percent in July to 5 percent in August.
The UR also stood at 5.1 percent in August 2025.
Follow The PSUWatch Channel on WhatsApp
During the same period, the rural unemployment rate decreased from 4.5 percent to 4.1 percent month-on-month, while urban UR remained almost stable at 6.8 percent in August compared to 6.7 percent in July.
Compared with August 2025, the overall UR and urban UR remained broadly stable in August 2026, whereas the rural UR declined by 0.2 percentage point to 4.1 percent in August against 4.3 percent in the same month a year ago.
Since January 2026, rural UR recorded its lowest level in August, it stated.
The overall UR among males aged 15 years and above declined for the third consecutive month, reaching 4.9 percent in the month under review from 5.4 percent in May 2026.
The rural male UR declined from 4.6 percent in July to 4.3 percent in August, while urban male UR marginally rose from 5.9 percent to 6.1 percent during the same period.
Among females aged 15 years and above, overall UR declined for two consecutive months to 5.1 percent in August 2026 from 5.9 percent in June 2026.
Rural female UR decreased from 4.3 percent in July to 3.9 percent in August, while urban female UR remained broadly stable compared to the previous month.
A year-on-year comparison indicates that the overall unemployment rate for both males and females remained broadly unchanged in August 2026.
The overall male and female UR declined in August compared to July.
At the all-India level, the monthly estimates are based on information collected from a total of 3,70,160 persons surveyed.
The PLFS survey methodology has been modified from January 2025 to provide monthly and quarterly estimates of labour force indicators for the country.
The present Monthly Bulletin for August 2026 is the seventeenth in the series.
The overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.6 percent in August from 55.4 percent in July. A similar trend has also been observed in rural areas, where the LFPR for persons aged 15 years and above increased to 58.2 percent in August, from 58.0 percent in July.
In urban areas, LFPR remained steady at 50.4 percent in August, compared to the previous month.
Compared to the corresponding month of the previous year, the overall LFPR increased by 0.6 percentage points to 55.6 percent, from 55 percent in August 2025.
During the same period, rural LFPR also increased by 1.2 percentage points, from 57 percent to 58.2 percent, while urban LFPR experienced a marginal decline of 0.5 percentage points, from 50.9 percent to 50.4 percent.
Follow PSU Watch on LinkedIN
The overall female LFPR experienced a moderate increase from 34.4 percent in July to 34.8 percent in August, mainly contributed by rural female LFPR, which increased to 39.4 percent during the month under review from 38.8 percent recorded in the previous month.
During the same period, female LFPR in urban areas was broadly stable at 25.4 percent compared to 25.3 percent in July.
Over the year, the female LFPR increased by 1.1 percentage points, from 33.7 percent in August 2025 to 34.8 percent in August 2026.
During the same period, female LFPR in rural areas increased by 2 percentage points, from 37.4 percent to 39.4 percent, while urban female LFPR declined by 0.7 percentage points, from 26.1 percent to 25.4 percent.
The female LFPR increased for the second consecutive month, reaching 34.8 percent in August 2026.
The overall Worker Population Ratio (WPR) increased from 52.5 percent in July to 52.8 percent in August, driven by increased workforce participation in rural areas.
WPR in rural areas recorded an increase to 55.8 percent in August from 55.4 percent in the previous month, while urban WPR maintained the same level of 47 percent in August as observed in July.
The overall WPR showed an increase of 0.6 percentage points over the corresponding month of the previous year, from 52.2 percent in August 2025 to 52.8 percent in August 2026.
During the same period, rural WPR increased by 1.3 percentage points from 54.5 percent to 55.8 percent, whereas the urban WPR stood at 47 percent in August, down from 47.5 percent in the year-ago period, registering a decline of 0.5 percentage points.
A year-on-year comparison indicates an increase in the overall female WPR, with a 33 percent rise in August from 32 percent in August 2025.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)