Unemployment rate remains unchanged at 5.6% in June

The country’s unemployment rate stood unchanged at 5.6% in June 2025, the same as in May, according to the latest data from the Ministry of Statistics & Programme Implementation released on Tuesday.The figures, based on the Periodic Labour Force Survey (PLFS) under the Current Weekly Status (CWS) approach, indicate a slight rise from 5.1% recorded in April this year.
Urban and Rural Trends
Joblessness in urban areas inched up to 18.8% in June from 17.9% in May, while rural areas saw a marginal increase to 13.8% from 13.7% in the previous month.
The report attributed the dip in rural unemployment rates for both males and females to a rise in own-account work, likely driven by seasonal factors. Activities such as petty trade, repair services, and small-scale enterprises became more common during the period, reducing the number of unemployed individuals in rural regions.
Youth Unemployment on the Rise
The unemployment rate among those aged 15–29 years rose to 15.3% in June from 15% in May. Women in this age bracket experienced a sharper increase, with the rate climbing to 17.4% in June from 16.3% in May, while for men, it rose slightly to 14.7% from 14.5%.
Urban youth unemployment surged to 25.8% from 24.4%, while in rural areas, it increased to 13.7% from 13% during the same period.
Labour Force Participation and Employment Ratios Decline
The Labour Force Participation Rate (LFPR) among individuals aged 15 years and above slipped to 54.2% in June from 54.8% in May. In rural areas, the LFPR stood at 56.1%, while in urban regions, it was 50.4%.
The Worker Population Ratio (WPR) — the proportion of employed persons in the total population — also declined to 51.2% in June from 51.7% in May. Rural WPR was 53.3%, compared to 46.8% in urban areas.
Female workforce participation continued to remain low, with WPR for women at 30.2% at the national level, and LFPR for rural women recorded at 35.2% in June.
The ministry noted that the marginal decline in LFPR and WPR was influenced by seasonal agricultural patterns, intense summer heat, and a shift of unpaid helpers in rural households towards domestic duties. The share of rural female workers in agriculture also dipped from 70.2% in May to 69.8% in June.
The revamped PLFS sampling methodology, implemented in January 2025, surveyed 7,520 sampling units across India for the June quarter,according to information. In total, 89,493 households and 3.8 lakh individuals were covered, including 2.17 lakh from rural areas and 1.63 lakh from urban regions.

(Business Correspondent)