India's Unemployment Rate Declines From 6% To 3.2% In Past Six Years: Official Data

In a positive development, India’s unemployment rate has declined significantly over the past six years, amid structural improvement in labour market conditions. According to the latest Annual Periodic Labour Force Survey (PLFS), the unemployment rate on usual status for persons aged 15 years and above declined from 6.0% in 2017-18 to 3.2% in 2023-24.
The Ministry of Statistics and Programme Implementation (MoSPI) has also revamped PLFS from January 2025, introducing monthly estimates based on the Current Weekly Status (CWS).
As per the new monthly data, unemployment for the 15-year-plus population stood at 5.1% in August 2025 and 5.2% in September 2025. Rural unemployment was 4.3% and 4.6% in the two months, while urban unemployment was higher at 6.7% and 6.8%. “Changes are expected in the monthly PLFS ratios due to increased frequency and seasonal changes but do not necessarily reflect secular trends,” the labour ministry said.
In Maharashtra, unemployment has also eased significantly over the past six years. The unemployment rate on usual status dropped from 4.8% in 2017-18 to 3.3% in 2023-24. Rural unemployment declined from 3.2% to 2.1% during the period, while urban unemployment reduced from 7.4% to 5.2%.
Employment Initiatives of the Government
“Employment generation coupled with improving employability is a priority of the Government. Accordingly, Government is implementing various employment generation schemes/programmes in the country including Maharashtra to boost the participation of all (including women, SC and ST categories in both rural and urban regions). These inter-alia include Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Production Linked Incentive (PLI) scheme, Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Rural Self Employment and Training Institutes (RSETIs), Deen Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY- NULM), PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), Stand-up India Scheme, Start Up India ,Pradhan Mantri Mudra Yojana (PMMY), etc,” the ministry said.
In the technology sector, the Ministry of Electronics and Information Technology is implementing ‘FutureSkills PRIME’ to upskill IT professionals in emerging technologies such as artificial intelligence. Several ministries are also rolling out targeted initiatives to improve women’s employability. These include vocational training through Women Industrial Training Institutes, scholarships like PRAGATI and Saraswati offered by AICTE, and the “AI Career for Women” initiative launched by the Skill Development Ministry in April 2025. The Ministry of Women and Child Development is expanding childcare support through Anganwadi-cum-Creches under the ‘Palna’ component of Mission Shakti and has launched “NAVYA” to offer vocational training to girls aged 16 to 18.
The government has also rolled out the Pradhan Mantri Viksit Bharat Rozgar Yojana, an Employment Linked Incentive (ELI) scheme aimed at creating over 3.5 crore jobs over two years with a financial outlay of Rs 99,446 crore. The portal-based National Career Service (NCS) continues to serve as a single-point platform for job search, counselling, and skills information.
Several focused interventions for SC/ST jobseekers are also underway through 25 dedicated National Career Service Centres that provide pre-recruitment training, counselling, and computer skills. The Department of Social Justice and Empowerment is running the PM-DAKSH scheme to offer market-linked skill training to SCs, OBCs, EWSs, DNTs, and waste pickers.
New Labour Codes
“A number of protective provisions have been incorporated in the labour laws for equal opportunity and congenial work environment for women workers. The Code on Social Security, 2020 has the provisions for a paid maternity leave of 26 weeks, provision for mandatory crèche facility in the establishments having 50 or more employees, etc,” the ministry said.
Further, the Code on Occupational Safety, Health and Working Conditions (OSH), 2020 has the provisions that women shall be entitled to be employed in all establishments for all types of work and they may be employed, with their consent before 6 am and beyond 7 p.m. subject to such conditions relating to safety, holidays and working hours or any other conditions to be observed by the employer as may be prescribed by the appropriate Government.
The Union Budget (2024-25) announced setting up of working women hostels in collaboration with industry, and establishing crèches, for increasing participation of women in the workforce.
This information was given by the Minister of State for Labour and Employment Sushri Shobha Karandlaje in written reply to a question in Lok Sabha today.