India’s Unemployment Rate Falls Sharply Over Six Years

India has recorded a significant decline in unemployment, reflecting broader improvements in labour market conditions and policy-driven efforts to expand job opportunities. Official data from the Annual Periodic Labour Force Survey (PLFS) shows a steady fall in joblessness among those aged 15 years and above over a six-year period.

National unemployment trend

According to PLFS data, the unemployment rate on usual status dropped from 6.0% in 2017–18 to 3.2% in 2023–24. Officials attribute this improvement to structural changes in the labour market, higher workforce participation and sustained policy support aimed at expanding formal and informal employment avenues.

Monthly PLFS insights and urban–rural patterns

From January 2025, PLFS began issuing monthly estimates based on Current Weekly Status. Unemployment stood at 5.1% in August 2025 and 5.2% in September 2025. Rural unemployment remained lower at 4.3% and 4.6% in the two months, while urban joblessness was higher at 6.7% and 6.8%. Authorities note that monthly fluctuations reflect seasonal and survey-frequency changes rather than long-term structural shifts.

State-level progress: Maharashtra case study

Maharashtra also reported substantial improvement. Its unemployment rate fell from 4.8% in 2017–18 to 3.3% in 2023–24. Rural unemployment declined from 3.2% to 2.1%, and urban unemployment eased from 7.4% to 5.2%. These gains are linked to targeted skills initiatives, livelihood programmes and expanding industry-linked employment.

Exam Oriented Facts

• National unemployment fell from 6.0% (2017–18) to 3.2% (2023–24) under usual status.
• Monthly PLFS estimates in 2025 showed 5.1% unemployment in August and 5.2% in September.
• Maharashtra’s unemployment declined to 3.3% in 2023–24, with major rural and urban improvements.
• PLFS was revamped in January 2025 to include monthly Current Weekly Status data.

Government measures to strengthen employment

A wide range of programmes support job creation and employability, including PMEGP, MGNREGS, PLI, DAY-NRLM, DDU-GKY, PMKVY, RSETIs, DAY-NULM, PM-SVANidhi, Start-Up India and PMMY. Additional initiatives focus on women’s workforce participation through vocational schemes, childcare support and technology-driven training. The Pradhan Mantri Viksit Bharat Rozgar Yojana aims to generate over 3.5 crore jobs, while labour codes introduce measures for safer, more flexible work environments.