New Delhi. A strong and positive news has come out from the labor market of India at this time. The country’s unemployment rate has reduced by more than half in the last six years. According to the ministry, this decline is not the effect of any one program but is the combined result of several big employment missions, skill development drives and special initiatives for women. According to the PLFS (Periodic Labor Force Survey) report, the unemployment rate among the population above 15 years of age decreased from 6.0 percent to 3.2 percent between 2017 and 2024. The government says that this decline has been recorded due to structural reforms and continuously running employment schemes.
From January 2025, PLFS is being presented in a new format in which monthly estimates have also been added for the first time. In these monthly figures, the unemployment rate was 5.1 percent in August 2025 and 5.2 percent in September. The ministry says that the fluctuations in these months are seasonal effects and should not be considered as long-term trends.
Rapid improvement in rural India, pressure less in cities also
The report says that job opportunities are gradually increasing in rural areas. The rural unemployment rate in August and September 2025 was 4.3 and 4.6 percent respectively. The unemployment rate in cities is still high but it is also showing a decline compared to previous years. Urban unemployment was 6.7 percent in August and 6.8 percent in September. The ministry says that continuous improvements are being made in infrastructure, small businesses and startup ecosystem to increase employment in the urban sector.
Example of Maharashtra: Six consecutive years of improvement
Even in a big state like Maharashtra, there has been a sharp decline in the unemployment rate. According to PLFS data, between 2017 and 2024, the state’s unemployment rate fell from 4.8 percent to 3.3 percent. This decline was even sharper in rural areas and the rate decreased from 3.2 percent to 2.1 percent. Urban unemployment also came down from 7.4 percent to 5.2 percent. Experts say that recovery in the state’s industrial and service sectors, MSME expansion and improvement in agro-based activities have accelerated this change.
Government’s full focus: jobs as well as skills
The Labor Ministry says that the priority of the government is not only to create new jobs but also to increase the employability of the people. For this reason, many big schemes have been launched in the last years, which include schemes like Prime Minister’s Employment Generation Programme, MNREGA, Production Based Incentive i.e. PLI Scheme, Deendayal Antyodaya Mission both rural and urban, PM Kaushal Vikas Yojana, and PM Mudra. The ministry says that these schemes have played a big role in connecting rural women, SC and ST communities with the formal employment system.
Big changes in tech sector
The Ministry of Electronics and Information Technology is running platforms like FutureSkills Prime for IT professionals where people are being trained in new areas like Artificial Intelligence. The ministry says that the demand for technology-based jobs will increase rapidly in the coming years and India can emerge as a major talent hub in this.
Strong policy regarding women, from crèche to skilling
Many targeted programs are also running to increase the employment number of women. The Ministry of Women and Child Development has increased the provision of Anganwadi cum crèches so that working women can get child care support. Skill Development Ministry’s AI Career for Women initiative, Navya Yojana and AICTE’s scholarships are also opening new paths in this direction. Apart from this, many new provisions have been added in the new Labor Code regarding working conditions, maternity leave and security for women.
Target of 3.5 crore jobs in two years
The government has launched the Pradhan Mantri Vikas Bharat Rojgar Yojana which aims to create more than 3.5 crore jobs in two years. A financial provision of approximately Rs 99446 crore has been made on this scheme. The ministry says that this will prepare India’s industrial and service sectors for the demand of the next decade.
New digital ecosystem for job seekers
National Career Service Portal is now becoming the largest job platform in the country. Here all the services of job search, career counseling and skill upgradation are available at one place. 25 special centers have also been opened for SC and ST youth where pre-employment training and computer skills are being taught. Apart from this, under PM Daksh Yojana, market based skill training is being given to OBC, EWS and deprived communities.
