Unemployment reduces to 8-month low of 4.7% as rural hiring lifts labour market

India’s unemployment rate for people aged 15 years and above fell to 4.7% in November, the lowest level recorded in eight months, according to the latest monthly bulletin of the Periodic Labour Force Survey. The decline from 5.2% in October points to a broad-based easing in joblessness across regions and demographic groups.

At the same time, labour force participation strengthened. The Labour Force Participation Rate for the same age group rose to 55.8%, a seven-month high, indicating that more people were either working or actively seeking work. The combined movement of lower unemployment and higher participation suggests improving labour market conditions rather than people dropping out of the workforce.

Rural areas provided the strongest support. Joblessness in the countryside fell to a new low, while urban unemployment edged down as well, matching its earlier trough recorded in April. The monthly PLFS bulletin series began in April, making the November data the most unambiguous indication yet of trends through the year.

Rural momentum drives fall in unemployment

Rural unemployment declined to 3.9% in November, the lowest level recorded since the start of the monthly survey. Urban joblessness eased to 6.5%, equalling its previous low from April, according to data released by the statistics office.

The improvement was visible across genders. Among women aged 15 years and above, the unemployment rate fell to 4.8% in November from 5.4% in October. The decline was driven by both rural and urban areas, with rural female joblessness dropping from 4.0% to 3.4%, and urban female unemployment easing from 9.7% to 9.3%.

Male unemployment moderated too. The overall rate for men fell to 4.6% from 5.1% a month earlier. In rural areas, male joblessness declined from 4.6% to 4.1%, while in urban centres it eased from 6.1% to 5.6%.

In an official statement, the statistics office said unemployment showed a “steady and broad-based decline” across men, women and all persons during the April to November period. The fall was described as more pronounced in rural areas, where both male and female unemployment reached their lowest levels in November.

Participation rises as more people enter the workforce

Alongside the fall in joblessness, labour force participation strengthened. The overall LFPR for those aged 15 years and above rose to 55.8% in November, the highest reading since April.

Rural participation was the key driver. The rural LFPR increased to 58.6% in November, up from 58.0% in April and from 57.8% in October. This suggests that rural employment gains were accompanied by more people entering or re-entering the workforce.

Urban participation, by contrast, was largely stable. The urban LFPR dipped marginally from 50.5% in October to 50.4% in November, indicating that improvements in cities were led more by easing unemployment than by rising participation.

Taken together, the statistics office said the data point to strengthening labour market conditions, supported by gains in rural employment, rising female participation and a gradual recovery in urban labour demand.