India’s unemployment rate drops to 5.1% in July 2026

India's overall unemployment rate for persons aged 15 and above fell to 5.1% in July 2026, down from 5.5% in June 2026, according to the Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO) on Monday. Rediff.com reports rural unemployment declined from 5% to 4.5%, while urban unemployment remained stable at 6.7%.

Hindustan Times notes the headline rate is marginally lower than 5.2% in July 2025, but unemployment among the 15-29 age group rose 70 basis points to 15.6% year-on-year, sparking concerns amid recent Gen Z protests. Female unemployment increased 30 basis points to 5.4% compared to last year, while male unemployment fell 30 basis points to 5%.

The Labour Force Participation Rate (LFPR) rose to 55.4% in July 2026 from 54.4% in June 2026, with rural female LFPR increasing from 36.6% to 38.8%. The Worker Population Ratio (WPR) improved to 52.5% from 51.4% in the same period.