India's LFPR Hits Record 56.1% in 2025 | 23 Jan 2026

Source: IE 

The Periodic Labour Force Survey (PLFS) – December 2025 shows a consistent recovery with workforce participation reaching yearly highs while unemployment rates remain broadly stable. 

• The monthly data is based on the Current Weekly Status (CWS) approach, assessing a person’s activity status (employed, unemployed, or out of the labour force) over the 7 days preceding the survey. 

Key Highlights 

• Labour Force Participation Rate (LFPR): LFPR for persons aged 15+ continued its upward trend since June 2025, reaching 56.1% in December 2025. 
  • LFPR is the percentage of the working-age population (15–59 years) that is either employed or actively seeking employment. 
• Worker Population Ratio (WPR): WPR reached its yearly peak at 53.4%. Rural male WPR showed strong performance at 76.0%, and women at 38.6% indicating robust rural employment. 
  • WPR is the percentage of the working-age population that is actually employed. 
• Unemployment Scenario: Overall Unemployment Rate (UR) remained stable at 4.8%. Rural UR was steady at 3.9% while urban UR increased slightly to 6.7%. 
  • Urban female UR showed a significant decline to 9.1% from its yearly peak of 9.7% in October 2025. 
• Rural-Urban Divide: A clear disparity persists with rural LFPR (59.0%) substantially higher than urban LFPR (50.2%), and urban unemployment consistently exceeding rural levels.