- India’s unemployment rate rose to 5.6 percent in May 2025, up from 5.1 percent in April, according to government data
- Women’s Unemployment rate recorded 5.8% in May 2025
- Seasonal factors and a decline in rural employment after the Rabi harvest season ended are primarily to blame for the increase
India's unemployment rate rose from 5.1 percent in April to 5.6 percent in May 2025, according to data published by the Ministry of Statistics and Programme Implementation. According to the ministry's report, this is mostly due to seasonal factors and a decline in rural employment following the conclusion of the Rabi harvest season.
The monthly Periodic Labour Force Survey (PLFS), which provides current information on employment trends, is in its second issue. According to the report, women's unemployment in May was 5.8 percent, slightly higher than men's, at 5.6 percent and 5.8 percent, respectively.
There was also a sharp rise in youth unemployment, especially among the 15-29 age group. Their combined unemployment rate rose from 13.8 percent in April to 15 percent in May. Among young women, the rate rose to 16.3 percent from 14.4 percent, and that for young men was at 14.5 percent.
Urban and rural regions saw a rise in unemployment. Urban unemployment was 17.9 percent during May compared to 17.2 percent, while rural unemployment rose from 12.3 percent to 13.7 percent. Rural employment ceased to be associated with agriculture, as agricultural employment declined from 45.9 percent in April to 43.5 percent during May, with increasing entries into the industrial and services category.
Labour Force Participation Rate (LFPR) also went down countrywide, to 54.8 percent in May from 55.6 percent in April. Urban LFPR went down slightly to 50.4 percent, while rural LFPR went down more sharply from 58 percent to 56.9 percent. Rural women's LFPR went down sharply to 36.9 percent, from 38.2 percent, due primarily to a fall in casual and unpaid work.
The Worker Population Ratio (WPR), or the proportion of working people in the population, also fell from 52.8 percent in April to 51.7 percent in May. WPR fell more sharply for women, from 32.5 percent to 31.3 percent. PLFS in May interviewed more than 89,000 households and almost 3.8 lakh individuals of rural and urban India.
