According to PIB's year-end economic data, the Labour Force Participation Rate (LFPR) for persons aged 15 years and above increased to 56.1% in December 2025, and the unemployment rate declined to 4.8%. Industrial activity gathered further momentum with broad-based improvement reflected across both the Index of Industrial Production (IIP) and the Index of Eight Core Industries (ICI). CRISIL raised India's FY26 GDP growth forecast to 7%, reflecting robust domestic demand, infrastructure spending, and improving rural consumption. The services sector continued to outperform, contributing 55% of GDP.
PIB Year-End Review: India's Employment Indicators Improve; Unemployment Rate Broadly Stable at 4.8%
AQuick answer
LFPR at 56.1%, unemployment at 4.8% in Dec 2025; CRISIL raised FY26 GDP forecast to 7%.
Key facts
- Labour Force Participation Rate (LFPR) for persons aged 15+ increased to 56.1% in December 2025; unemployment rate was broadly stable at 4.8%
- Industrial activity showed broad-based improvement across Index of Industrial Production (IIP) and Index of Eight Core Industries (ICI)
- CRISIL raised India's FY26 GDP growth forecast to 7% reflecting robust domestic demand, infrastructure spending, and improving rural consumption
- Services sector continued to outperform, contributing 55% of GDP
Mains angle
Q: Examine the improvements in India's employment indicators highlighted in the PIB year-end 2025 review and their implications for sustainable economic growth.
Answer (50 words):
PIB's year-end review reported Labour Force Participation Rate rising to 56.1 percent and unemployment declining to 4.8 percent in December 2025. Industrial activity strengthened across the Index of Industrial Production and Eight Core Industries. CRISIL raised FY26 GDP growth forecast to 7 percent, with the services sector contributing 55 percent.
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Economic Growth & Sustainable DevelopmentIndian EconomySkill Development & Social JusticeIndian Economy
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Linked questionMedium
According to the G20 inequality report, what share of new global wealth did the top 1% capture (2000-2024)?
Explanation · Correct answer B
The G20 report showed the top 1% captured 41% of new wealth globally between 2000-2024.
Source: PIB
Frequently asked questions
What did PIB's year-end data show about labour participation and unemployment?
According to PIB's year-end economic data, the Labour Force Participation Rate for persons aged 15 years and above increased to 56.1% in December 2025. The unemployment rate declined to 4.8%.
What indicators reflected stronger industrial activity?
Industrial activity gathered further momentum with broad-based improvement across both the Index of Industrial Production and the Index of Eight Core Industries.
Why did CRISIL raise India's FY26 GDP growth forecast?
CRISIL raised India's FY26 GDP growth forecast to 7%, reflecting robust domestic demand, infrastructure spending, and improving rural consumption.
How did the services sector perform in the economic data?
The services sector continued to outperform and contributed 55% of GDP.
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