PLFS Data Shows Sharp Decline in India’s Unemployment Since 2017

India’s Unemployment Rate Falls Sharply Over Six Years

India’s labour market has shown marked improvement over the past six years, with official data indicating a steady and significant reduction in unemployment. The latest Annual Periodic Labour Force Survey (PLFS) highlights a robust decline in joblessness among individuals aged 15 years and above, signalling expanding economic activity and enhanced workforce engagement.

Long-Term National Trend Shows Strong Recovery

According to PLFS estimates, the unemployment rate under usual status fell from 6.0% in 2017–18 to just 3.2% in 2023–24 . Policymakers attribute this progress to structural reforms, expanding employment avenues in both formal and informal sectors, and sustained initiatives aimed at skilling and livelihood generation. Increased female labour force participation has further contributed to the improving trend.

Monthly PLFS Data Offers New Insights

Beginning January 2025, PLFS introduced monthly Current Weekly Status (CWS) unemployment indicators, providing higher-frequency labour market tracking. Monthly joblessness stood at 5.1% in August 2025 and 5.2% in September 2025 , with rural unemployment consistently lower than urban. Rural joblessness was 4.3% and 4.6% in the two months, while urban unemployment remained comparatively high at 6.7% and 6.8%. Economists note that monthly variations reflect seasonal shifts rather than long-term structural changes.

State Spotlight: Maharashtra Shows Strong Gains

Maharashtra recorded a notable improvement, with unemployment declining from 4.8% (2017–18) to 3.3% (2023–24) . Rural unemployment fell sharply to 2.1%, and urban unemployment eased to 5.2%. State officials attribute this to industry expansion, skill-development programmes and rural livelihood missions.

Exam Oriented Facts

• India’s unemployment rate dropped from 6.0% to 3.2% between 2017–18 and 2023–24.

• Monthly PLFS (CWS) unemployment: 5.1% in August 2025 , 5.2% in September 2025 .

• Maharashtra unemployment: 3.3% in 2023–24 .

• Monthly PLFS system introduced in January 2025 .

Strengthening India’s Employment Ecosystem

Key government programmes—PMEGP, MGNREGS, PLI, PMKVY, DAY-NULM, PM-SVANidhi, Start-Up India and PMMY—continue to drive job creation. The Pradhan Mantri Viksit Bharat Rozgar Yojana aims to create 3.5 crore additional jobs, while new labour codes promote safer and more flexible working conditions.