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The Periodic Labour Force Survey (PLFS) – December 2025 has been released, drawing attention because it shows a consistent labour-market recovery in India. Key indicators such as the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) have reached their highest levels of the year, while the unemployment rate remains broadly stable.

Summary & Analysis of PLFS – December 2025

1. Labour Force Participation Rate (LFPR) – Strong Upward Momentum

• LFPR (15+): 56.1% — the highest in 2025, continuing a steady climb since June.
• This indicates more people entering or re-entering the labour market, suggesting improved economic confidence.
• Rural LFPR (59.0%) remains far ahead of urban LFPR (50.2%), reflecting stronger agricultural and informal sector activity in rural areas.

2. Worker Population Ratio (WPR) – Yearly High

• WPR: 53.4%, the strongest recorded in 2025.
• Rural male WPR: 76.0% — extremely robust, signaling full engagement in agricultural and allied seasonal activities.
• Rural female WPR: 38.6% — relatively high by historical standards, showing improved female participation, likely driven by agriculture, MGNREGA-type schemes, and rural self-employment.

3. Unemployment Rate (UR) – Broad Stability

• Overall UR: 4.8% — stable and low in global comparison.
• Rural UR: 3.9% — steady, reflecting the absorption capacity of rural informal work.
• Urban UR: 6.7% — slight uptick, indicating:
  • Slower hiring recovery in services & formal sectors.
  • Higher job-search intensity due to better-educated urban labour force.
• Urban female UR falls to 9.1% (down from 9.7% in Oct 2025), a meaningful improvement.

4. Rural–Urban Divide – Persistent & Structural

• Higher rural participation (LFPR & WPR)—driven by agriculture, self-employment, and family-based work.
• Higher urban unemployment—reflecting:
  • Higher skill expectations,
  • Formal hiring cycles,
  • Competition for fewer high-quality jobs.

This structural gap continues to be one of India’s defining labour-market characteristics.

Overall Interpretation

The December 2025 PLFS data reflects:

• Consistent strengthening of labour-market participation, especially in rural regions.
• Employment growth outpacing labour force growth, leading to stable or slightly improving unemployment rates.
• Urban labour markets recovering unevenly, with female unemployment improving but general urban unemployment ticking up.

The data suggests a broad-based but uneven recovery, with rural labour markets outperforming urban ones.

Practice Questions

1. Consider the following statements regarding the Periodic Labour Force Survey (PLFS) – December 2025:

1. The Labour Force Participation Rate (LFPR) for persons aged 15+ reached its highest level of the year at 56.1%.
2. The Worker Population Ratio (WPR) showed a decline compared to the previous months of 2025.
3. The Urban Unemployment Rate (UR) remained lower than the Rural Unemployment Rate.

Which of the statements given above is/are correct?

A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1 only

Answer: A

2. With reference to the labour market trends reported in the PLFS – December 2025, consider the following statements:

1. Rural LFPR is higher than urban LFPR.
2. Urban female unemployment rate declined compared to its peak in October 2025.
3. Rural unemployment rate increased significantly in December 2025.

How many of the above statements are correct?

A. Only one
B. Only two
C. All three
D. None

Answer: B