India’s unemployment rate increased to 5.6% in May 2025, up from 5.1% in April, primarily due to a sharp decline in agricultural jobs following the harvest season, according to data released by the Ministry of Statistics. The jobless rate among urban and rural youth and female workers also rose during this period, reflecting sectoral shifts in employment and ongoing economic challenges.
Why in News?
The Labour Force Statistics for May 2025 were released by the Indian government on June 16, 2025. This is only the second monthly labour force data release covering both urban and rural populations. It reflects trends following the post-harvest season, showing how seasonal employment affects the broader labour market.
Key Data Highlights (May 2025)
Overall Unemployment Rate: 5.6% in May (up from 5.1% in April).
Female Unemployment Rate: Increased to 5.8% (compared to 5.6% for males).
Youth (15–29 years) Unemployment
- Urban: Rose to 17.9% (from 17.2%).
- Rural: Rose to 13.7% (from 12.3%).
Sectoral and Gender-Based Employment Shifts
Farm Sector Decline
- Share of workers in agriculture fell from 45.9% in April to 43.5% in May.
- Decline attributed to post-harvest seasonal slowdown in rural areas.
Labour Force Participation Rate for Women
- Dropped from 28.8% in April to 27.8% in May.
- Indicates fewer job opportunities for rural women after harvest season.
Employment Migration
- Workers shifted from agriculture to manufacturing and services sectors.
| Summary/Static | Details |
| Why in the news? | Unemployment Rate (May 2025) |
| Female Unemployment Rate | 5.8% |
| Urban Youth (15–29 yrs) | Jobless Rate 17.9% (↑ from 17.2%) |
| Rural Youth Jobless Rate | 13.7% (↑ from 12.3%) |
| Agricultural Workforce Share | Dropped to 43.5% (from 45.9%) |
| Female Labour Participation Rate | Dropped to 27.8% (from 28.8%) |
