ndia’s unemployment rate rose to 5.6% in May 2025, up from 5.1% in April, primarily due to seasonal variations and a slowdown in rural agricultural activity, as per the newly launched monthly Periodic Labour Force Survey (PLFS) by the Ministry of Statistics. The rise in joblessness among women (5.8%) and youth aged 15-29 (15%) highlights a troubling trend in India’s labour market. Urban unemployment surged to 17.9% and rural unemployment to 13.7%, driven by the end of the Rabi harvest season and reduced availability of outdoor jobs amid intense summer conditions.
The data showed a shift in rural employment away from agriculture (from 45.9% in April to 43.5% in May) toward the secondary and service sectors. Urban areas, meanwhile, recorded marginal drops in workforce participation due to a decline in own-account workers and casual labourers. The female unemployment rate in the 15–29 age group rose sharply to 16.3%, while for young men it increased to 14.5%, signaling deepening distress across gender and age groups. Urban youth unemployment climbed to 24.7%, while rural youth faced a 13% jobless rate.
The Labour Force Participation Rate (LFPR) among individuals aged 15 and above fell to 54.8% in May from 55.6% in April. The drop was more pronounced in rural areas (from 58% to 56.9%) and among women. Female LFPR in rural areas dropped to 36.9%, while urban female participation declined to 25.3%, indicating fewer women working as casual labourers or unpaid helpers. The Worker Population Ratio (WPR) also fell to 51.7% nationally, with a more significant dip in female WPR (31.3%), reflecting a contraction in actual employment across sectors.
The monthly PLFS data, covering over 89,000 households and 3.79 lakh individuals, underscores the growing volatility in India’s labour market. The government clarified that the monthly figures may fluctuate due to seasonal, academic, and labour-market-related factors and do not necessarily indicate long-term trends. However, the consistent drop in key employment indicators – LFPR, WPR, and rise in unemployment, particularly among women and youth – highlights the urgent need for targeted labour reforms and skilling programs to counteract cyclical shocks and strengthen India’s workforce resilience.
