India’s Unemployment Rate Increases to 5.6% in May
India’s unemployment rate has seen a notable increase, rising to 5.6% in May 2025 from 5.1% in April, as reported by the Ministry of Statistics and Programme Implementation. This uptick is primarily attributed to seasonal changes and a decline in rural employment following the conclusion of the Rabi harvest season. The ministry also introduced the first monthly edition of the Periodic Labour Force Survey (PLFS), which aims to provide real-time insights into the unemployment landscape across the country.
Unemployment Trends Among Different Demographics
The latest data reveals a concerning trend in unemployment rates among various demographics. Women experienced a slightly higher unemployment rate than men in May, with figures standing at 5.8% compared to 5.6%. Particularly alarming is the situation for young people aged 15 to 29, who faced a significant increase in joblessness. The unemployment rate for this age group surged from 13.8% in April to 15% in May. Among young women, the rate climbed to 16.3%, up from 14.4%, while young men in the same age bracket recorded a rate of 14.5%. This demographic shift highlights the challenges faced by younger individuals in securing employment in the current economic climate.
Urban and Rural Unemployment Rates
Both urban and rural areas have experienced a rise in unemployment rates. In urban regions, the unemployment rate increased from 17.2% in April to 17.9% in May. Rural areas also saw a rise, with the rate moving from 12.3% to 13.7%. The report indicates a shift in employment patterns in rural areas, where jobs in agriculture decreased from 45.9% in April to 43.5% in May. This decline is likely due to the seasonal nature of agricultural work following the Rabi harvest. As a result, more individuals are transitioning to jobs in the industrial and services sectors, reflecting a broader change in employment dynamics.
Decline in Labour Force Participation Rate
The Labour Force Participation Rate (LFPR) has also seen a decline, dropping to 54.8% in May from 55.6% in April. Urban areas reported a decrease in LFPR from 50.7% to 50.4%, while rural participation fell more sharply from 58% to 56.9%. Among women in rural areas, the LFPR saw a significant drop from 38.2% to 36.9%, largely due to fewer women working as casual laborers or unpaid helpers. Additionally, the LFPR for males aged 15 and above decreased to 78.3% from 79%. This decline in participation rates raises concerns about the overall engagement of the workforce in both urban and rural settings.
Worker Population Ratio Insights
The Worker Population Ratio (WPR), which measures the proportion of working individuals in the population, has also declined. Nationally, the WPR fell to 51.7% in May from 52.8% in April, with a more pronounced drop among women, whose WPR decreased to 31.3% from 32.5%. The May survey, which covered over 89,000 households and nearly 3.8 lakh individuals across rural and urban India, underscores the pressing need for targeted interventions to address the rising unemployment rates and declining participation in the workforce. As the country navigates these challenges, the data from the PLFS will be crucial for policymakers in formulating effective strategies to enhance employment opportunities.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
