New Delhi, Sept. 16 -- India's headline unemployment rate was 5.1% in August 2025, the lowest in five months, according to Periodic Labour Force Survey (PLFS) data published by the National Statistics Office (NSO) on Monday. On a sequential basis, the 5.1% unemployment rate in August is 10 basis points - one basis point is one hundredth of a percentage point - lower than in July and the same as it was in April. Labour market indicators are usually compared for the same period across years to account for seasonality of some jobs, such as those in agriculture. However, it is not possible to do so with the monthly numbers of PLFS because the NSO has started the monthly PLFS series only from April 2025. The sequential fall in unemployment rate in August was accompanied with a rise in labour force participation. Labour force participation rate (LFPR) is calculated as the share of the population working or looking for a job. LFPR was at a four-month high of 41.5% in August, 10 basis points higher than in July, and only lower than the April LFPR of 42%. This implies that the fall in unemployment rate in August was not the result of fewer people looking for jobs. To be sure, there is divergence in the employment trends in rural and urban areas. Rural unemployment was 4.4% in August, the same as in July. On the other hand, urban unemployment fell 50 bps to 6.7%. Rural and urban areas have also followed different unemployment trajectories since April. Rural unemployment peaked at 5.1% in May and was at its lowest level in July and August. Urban unemployment peaked at 7.2% in July and was at its second lowest level since April in August. The lowest urban unemployment rate was seen in April, when it was 6.5%. How much of this divergence in rural and urban areas is a reflection of seasonality of the jobs in the two areas will be known in May 2026, when April 2026 estimates are published and year-on-year comparisons can be made....