India’s unemployment rate reached 5.6% in May 2025, up from 5.1% in April, according to the latest Periodic Labour Force Survey (PLFS) covering both rural and urban areas.

The rise was driven by a seasonal drop in farm jobs post-harvest, with the impact more pronounced among youth and women, while labour force participation also declined slightly amid ongoing economic growth. 

Key Points

• India’s overall unemployment rate reached 5.6% in May 2025, rising from 5.1% in April, as per the latest PLFS data.
• The spike is largely seasonal—post-Rabi harvest labour demand fell, causing rural farm employment to dip from 45.9% to 43.5%.
• Women’s unemployment edged higher to 5.8%, compared to 5.6% for men, while urban youth (15–29 years) saw joblessness rise from 17.2% to 17.9%, rural youth from 12.3% to 13.7%.
• Labour Force Participation Rate dipped slightly to 54.8%, from 55.6% in April, with rural female participation falling more noticeably.
• Despite these shifts, India’s economy remains strong—Q1 GDP grew 7.4% year-on-year, and full-year growth is projected around 6.5%.