India’s job market strengthens as unemployment falls sharply after six years of structural reforms

A combination of labour-market improvements, revised PLFS tracking, and targeted employment schemes has contributed to steady declines in both rural and urban unemployment across major states.

India’s employment landscape has undergone a significant shift over the last six years, with official data showing a steady reduction in unemployment despite ongoing structural adjustments in the labour market. The latest Periodic Labour Force Survey (PLFS) highlights a notable national decline in the unemployment rate among individuals aged 15 years and above, from 6.0% in 2017–18 to 3.2% in 2023–24 under the usual status measure.

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Beginning January 2025, the Ministry of Statistics and Programme Implementation (MoSPI) revised the PLFS methodology, introducing monthly estimates based on current weekly status. These high-frequency updates show that unemployment for those aged above 15 stood at 5.1% in August 2025 and 5.2% in September 2025. Rural unemployment during the same months was 4.3% and 4.6%, while urban unemployment averaged 6.7% and 6.8%.

Officials noted that monthly variations are natural due to higher frequency sampling and do not reflect long-term trends.

Maharashtra has mirrored national progress, recording a sharp fall in overall unemployment from 4.8% in 2017-18 to 3.3% in 2023–24. Rural unemployment in the state dropped from 3.2% to 2.1%, while urban unemployment reduced from 7.4% to 5.2% over the same period.

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A broad set of government programmes is credited with boosting job creation and employability, especially for women, SC/ST communities, and workers in both rural and urban regions. Key initiatives include PMEGP, MGNREGS, PLI scheme, DAY-NRLM, DDU-GKY, PMKVY, RSETIs, DAY-NULM, PM SVANidhi, and PM Mudra Yojana. These schemes aim to support entrepreneurship, provide skilling, expand livelihood opportunities, and strengthen labour-force participation across sectors.