India's unemployment rate rises to 5.6% in May 2025: Govt data

India's unemployment rate rose to 5.6% in May 2025, a notable uptick from 5.1% in April, according to the latest data from the Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation. The increase reflects seasonal shifts and a slowdown in rural labor demand following the Rabi harvest.

The jobless rate rose across both rural and urban regions. Among the 15–29 age group, youth unemployment in rural areas climbed to 13.7% in May, up from 12.3% in April, while urban youth unemployment increased slightly to 17.9% from 17.2%.

Women were particularly affected, with their unemployment rate rising to 5.8%, slightly higher than the male rate of 5.6%.

The Labour Force Participation Rate (LFPR) — the share of people aged 15 and above who are either working or seeking work — declined to 54.8% in May from 55.6% in April. The rural LFPR fell to 56.9%, while the urban LFPR stood at 50.4%.

Men continued to participate in the labor force at significantly higher rates. Among rural men aged 15 and above, LFPR slipped to 78.3% in May from 79.0% in April. For urban men, the rate edged down to 75.1%. In contrast, the LFPR for rural women fell sharply to 36.9%.

The Worker Population Ratio (WPR), which measures the proportion of people actually employed, also dipped. The overall WPR declined to 51.7% in May from 52.8% a month earlier. Rural areas saw the WPR drop to 54.1%, while urban regions registered 46.9%. Female workforce participation remained low, with rural WPR for women at 35.2% and urban at just 23.0%.

Sectoral shifts further illustrate the impact of seasonal transitions. Employment in the primary sector — primarily agriculture — decreased from 45.9% in April to 43.5% in May. This decline, attributed to the conclusion of the Rabi harvest, led to a drop in casual labor and a temporary withdrawal of unpaid female workers in higher-income rural households.

Urban labor market dynamics remained relatively stable, though marginal declines were observed in self-employment and casual labor categories. These contributed to a slight worsening in the overall unemployment rate.

The Ministry noted that changes in monthly PLFS indicators are often shaped by short-term fluctuations, including climatic and academic cycles, rather than structural shifts in the economy. Nonetheless, the data underscores persistent vulnerabilities in youth and female employment and the sensitivity of rural livelihoods to agricultural seasons and weather conditions.