New Delhi, June 17, 2025 — India’s unemployment rate rose to 5.6% in May, up from 5.1% in April, driven largely by a decline in farm-related employment after the harvest season, the Ministry of Statistics reported on Monday.
This marks the second monthly release of comprehensive labour force data covering both urban and rural areas. Previously, the government released such data quarterly for urban areas and annually for both rural and urban regions.
🔹 Key Highlights
- 📈 Overall Unemployment:
National unemployment increased to 5.6% in May from 5.1% in April. - 👩🔬 Gender Disparity:
Female unemployment stood at 5.8%, slightly higher than 5.6% for males. - 🧑🎓 Urban Youth Jobless Rate:
Rose to 17.9% in May from 17.2% in April for those aged 15-29 years. - 🌾 Rural Youth Unemployment:
Increased to 13.7%, compared to 12.3% in April. - 🏭 Shift from Farm Work:
Share of farm sector employment fell to 43.5% in May from 45.9% in April due to seasonal decline post-harvest. - 👩🌾 Rural Women Impacted:
Labour force participation rate among rural women fell to 27.8% in May from 28.8% in April.
📉 Economic Backdrop
India’s economy, the third-largest in Asia, grew 7.4% year-on-year in the January–March quarter. The government forecasts 6.5% GDP growth for the current fiscal year starting in April, in line with last year’s performance.
However, manufacturing growth slowed to a three-month low in May due to softened demand, inflationary pressures, and geopolitical tensions, according to a separate industry survey.