Women Power the Jobs Story: Female LFPR Rises in India

Spread love

PLFS October–December 2025 signals steady labour market recovery, driven by rural women and self-employment

By S JHA

Mumbai, February 10, 2026 — India’s labour market data for October–December 2025 offers something rare in recent years: quiet optimism backed by numbers. The latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO) shows a broad-based improvement—higher labour participation, rising workforce engagement, declining unemployment, and a sustained increase in women joining the labour force.

While the gains are incremental rather than dramatic, the trend lines matter. Together, they point to a labour market that is stabilising after years of pandemic disruption, informalisation, and rural distress.

Female LFPR: The Most Significant Signal

The standout metric is the Female Labour Force Participation Rate (LFPR). Female LFPR (15 years and above) rose to 34.9% in October–December 2025—Up from 33.7% in the previous quarter; Rural female LFPR jumped sharply from 37.5% to 39.4%.

This upward momentum suggests that more women—especially in rural India—are either seeking work or are already employed. While urban female participation remains largely flat, the rural surge is reshaping the overall labour landscape.

For policymakers, this matters more than headline GDP numbers. Female workforce participation has long been India’s structural weakness—and its biggest untapped growth lever.

Overall Participation and Employment Improve

The overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 55.8%, compared to 55.1% in the previous quarter.

At the same time, the Worker Population Ratio (WPR)—a direct measure of how many people are actually working—rose from 52.2% to 53.1%.

In absolute terms, employment expanded meaningfully: Total employed persons rose from 56.2 crore to 57.4 crore; Female workers increased from 16.6 crore to 17.2 crore; and Male employment rose from 39.6 crore to 40.2 crore.

These gains underline that rising participation is not merely statistical—it is translating into real jobs.

Unemployment Rate Declines Across the Board

Equally important is the fall in unemployment: Rural UR declined from 4.4% to 4.0%; Urban UR eased from 6.9% to 6.7%; and Urban male unemployment fell to 5.9%.

The decline across both rural and urban India suggests improving job absorption capacity, even as more people enter the labour force—a combination economists closely watch.

Self-Employment: Modest Rise, Structural Reality

Self-employment continues to dominate India’s jobs ecosystem: Rural self-employment rose to 63.2% and Urban self-employment increased to 39.7%.

While critics argue that self-employment often masks underemployment, the steady rise—especially in rural areas—also reflects resilience, informal entrepreneurship, and agricultural absorption during uncertain times.

The agriculture sector remains the backbone of rural employment, accounting for 58.5% of rural workers, while 61.9% of urban workers continue to be employed in the services (tertiary) sector.

Why the New PLFS Design Matters

This data also marks a methodological shift. Since January 2025, the revamped PLFS now provides monthly and quarterly estimates for both rural and urban India under the Current Weekly Status (CWS) framework.

Earlier, quarterly data was limited to urban areas. The expanded coverage gives policymakers—and political actors—a far clearer picture of rural labour dynamics, especially women’s participation and agricultural employment.

With over 5.61 lakh individuals surveyed nationwide, the findings carry statistical weight.

The Bigger Picture

India’s labour market is not booming—but it is healing. The rise in female participation, modest job creation, falling unemployment, and steady workforce expansion together suggest that the economy is absorbing shocks better than before.

The challenge now is clear: Can India convert higher participation—especially among women—into better-quality, higher-productivity jobs? The answer to that question will define not just employment policy, but India’s growth trajectory in the decade ahead.

(This is an opinion piece. Views expressed are author’s own.)