India’s unemployment rate went up to 5.6% in May 2025, compared to 5.1% in April, according to government data. This increase is mainly due to seasonal changes and fewer rural jobs after the Rabi crop harvest ended, said the Ministry of Statistics and Programme Implementation.
The government recently started a monthly report called the Periodic Labour Force Survey (PLFS) to track how many people are unemployed each month.
Women Face Higher Unemployment
Women had a slightly higher unemployment rate than men in May:
- Women: 5.8%
- Men: 5.6%
Young People Struggling the Most
Youth aged 15 to 29 years saw a big jump in unemployment:
- Overall youth: 15% in May (up from 13.8% in April)
- Young women: 16.3% (up from 14.4%)
- Young men: 14.5%
Urban and Rural Areas Both Affected
Unemployment increased in both urban and rural parts of India:
- Urban areas: 17.9% in May (up from 17.2%)
- Rural areas: 13.7% in May (up from 12.3%)
In villages, fewer people were working in farming—down from 45.9% in April to 43.5% in May. Instead, more people shifted to jobs in industry and services after the harvest season ended.
Fewer People in the Workforce
The Labour Force Participation Rate (LFPR)—which shows how many people are working or looking for work—also dropped:
- National LFPR: 54.8% in May (down from 55.6% in April)
- Urban areas: 50.4% (down from 50.7%)
- Rural areas: 56.9% (down from 58%)
Among rural women, participation fell to 36.9% from 38.2%, as fewer worked as casual laborers or unpaid family workers.
Fewer People Working
The Worker Population Ratio (WPR)—which shows how many people are actually working—also declined:
- National WPR: 51.7% in May (down from 52.8%)
- Female WPR: 31.3% (down from 32.5%)
This data was collected from over 89,000 households and about 3.8 lakh individuals across India, covering both cities and villages.
