India's unemployment rate fell to 5.1% in July from 5.5% in June, reaching a four-month low and coming in below the 5.4% forecast in a Reuters poll. The decline was driven by rural areas, where unemployment dropped to 4.5% from 5.0%, more than offsetting a rise in urban unemployment to 6.7% from 6.6%. Labor force participation rose to 55.4% from 54.4%, suggesting employment growth absorbed more workers despite macroeconomic pressure from higher energy prices and strain on the rupee.