PLFS: Labour Force Participation Rate ends 2025 at new high of 56.1%, Pg21

Key Highlights:

• India's Labour Force Participation Rate (LFPR) reached a new high of 56.1% in December 2025.
• The unemployment rate saw a slight increase to 4.8% in December, up from 4.7% in November.
• The rise in LFPR is attributed to an increase in people seeking work in rural areas, with rural LFPR rising by 0.4% to 59%.
• Data is based on the Current Weekly Status (CWS) approach, measuring activity in the 7 days before the survey.

Detailed Insights:

• The Ministry of Statistics and Programme Implementation (MoSPI) began releasing monthly labour market data from April 2025 after revamping the Periodic Labour Force Survey (PLFS).
• The LFPR represents the percentage of the population actively seeking employment.
• Variations in monthly PLFS ratios may be influenced by seasonal, academic, and labour market dynamics.
• The increase in rural LFPR offset a slight decrease of 0.2% in the urban LFPR for individuals aged 15 years and above.

Key Concepts Involved:

• Labour Force Participation Rate (LFPR): Percentage of the population either employed or actively seeking work.
• Unemployment Rate: Percentage of the labor force that is without jobs and actively seeking employment.
• Current Weekly Status (CWS): Method of measuring employment status based on activity in the preceding seven days.