India's unemployment rate eased to 5.0% in August, the National Statistics Office reported on Tuesday, bringing the headline jobless measure to its lowest level in six months. The rate was 5.1% in July, and a poll had projected a 5.2% jobless rate for August. Earlier in the year the unemployment measure stood at 4.9% in February.
The NSO's release showed a divergence between rural and urban labour markets. Rural unemployment fell to 4.1% in August from 4.5% in July, a reading the agency described as the lowest since January. By contrast, urban unemployment rose slightly to 6.8% in August from 6.7% in July.
Gender-specific figures also moved lower in August. The unemployment rate for men declined to 4.9% from 5.0% in July, while the rate for women fell to 5.1% from 5.4% over the same period.
Measures of workforce engagement increased modestly during the month. The labour force participation rate - the share of people aged 15 and above who are working or actively seeking work - rose to 55.6% in August from 55.4% in July. The worker population ratio, which captures the proportion of the population that is employed, increased to 52.8% from 52.5% month-on-month.
Female labour force participation also strengthened in August, with the overall female participation rate rising to 34.8% from 34.4% in July.
The NSO figures present a snapshot of labour market conditions for August, reflecting small month-to-month movements across several headline indicators. The data show improvements in some measures and slight deterioration in others, without further detail on duration or composition of employment in the published summary.
Data snapshot
- Unemployment rate: 5.0% in August, down from 5.1% in July; 4.9% in February.
- Rural unemployment: 4.1% in August, down from 4.5% in July; lowest since January.
- Urban unemployment: 6.8% in August, up from 6.7% in July.
- Male unemployment: 4.9% in August, down from 5.0% in July.
- Female unemployment: 5.1% in August, down from 5.4% in July.
- Labour force participation rate: 55.6% in August, up from 55.4% in July.
- Worker population ratio: 52.8% in August, up from 52.5% in July.
- Female labour force participation: 34.8% in August, up from 34.4% in July.
Notes: The National Statistics Office provided the data points above in its August labour market report. The summary here reflects the monthly comparisons reported by the agency.