India's Unemployment Rate Rises to 5.6% in May 2025 – NSO Report
India's unemployment rate rose to 5.6% in May 2025, up from 5.1% in April, as per the latest data released on June 16 by the Ministry of Statistics and Programme Implementation. The increase is primarily attributed to seasonal fluctuations and extreme summer conditions in some regions.
The data, recorded under the Current Weekly Status (CWS) survey, indicates that all age groups saw a rise in unemployment during the month. The CWS reflects employment-related activity during the seven days preceding the date of the survey.
The ministry had released its first monthly Periodic Labour Force Survey (PLFS) last month for a more accurate view of employment conditions. According to the latest data, male unemployment stood at 5.6%, while female unemployment was slightly higher at 5.8%.
Youth in the 15-29 age group were most affected, with their unemployment rate climbing to 15% in May from 13.8% in April. Urban unemployment increased from 17.2% to 17.9%, while rural unemployment rose from 12.3% to 13.7%.
Specifically, unemployment among females aged 15–29 surged from 14.4% in April to 16.3% in May. For males in the same age bracket, the rate increased from 13.6% to 14.5%.
The Labour Force Participation Rate (LFPR) among individuals aged 15 and above fell from 55.6% in April to 54.8% in May. Rural LFPR declined from 58% to 56.9%, and urban LFPR dropped from 50.7% to 50.4%.
The Worker Population Ratio (WPR) also fell to 51.7% in May, compared to 52.8% in April. In rural areas, the WPR was 54.1%, and in urban areas, it was 46.9%.
The ministry attributed the drop in LFPR and WPR and the increase in unemployment to seasonal agricultural trends and reduced labor availability following the harvest of Rabi crops. Extreme heat in May also limited physical labor activities.
The PLFS data reflects monthly labor market dynamics and is expected to aid policymakers in understanding short-term trends, though it may not fully indicate long-term employment patterns.