India's unemployment rate rises to 5.6% in May 2025

India's unemployment rate climbed to 5.6% in May 2025 from 5.1% in April, as reported by the latest Periodic Labour Force Survey (PLFS). This increase reflects a rising challenge for job seekers across both rural and urban areas, notably among young people and women. The Ministry of Statistics and Programme Implementation (MoSPI) also observed a broader decline in employment due to several seasonal factors.advertisementRural areas saw a considerable rise in unemployment among those aged 15–29, with the rate reaching 13.7% in May from 12.3% in April. The situation was similarly difficult for urban youth, where unemployment marginally increased to 17.9% from 17.2% the previous month. Overall, rural unemployment stood at 5.4%, while urban unemployment was slightly higher at 5.9%.The end of the Rabi harvest season, which traditionally leads to reduced farm-related employment, significantly impacted rural job figures. MoSPI reported a decrease in primary sector employment from 45.9% in April to 43.5% in May. This seasonal shift is common, though this year it coincided with additional challenges such as higher-than-normal temperatures that discouraged outdoor work.
The labor force participation rate (LFPR) dropped to 54.8% in May from 55.6% in April. Rural areas recorded an LFPR of 56.9%, whereas urban areas stood at 50.4%. This decline indicates fewer individuals were either employed or actively seeking work in May.advertisementIn terms of the Worker Population Ratio (WPR), which reflects the proportion of the working individuals within the population, there was a decline to 51.7% in May from 52.8% in April. Rural areas had a WPR of 54.1%, while urban areas were at 46.9%.Female unemployment rose slightly to 5.8% in May, compared to 5.6% among males. The LFPR among rural women was 36.9%, significantly higher than the 22.6% recorded for urban women. Overall, the female LFPR was 33.1%, with an overall female WPR of 31.3% across India.MoSPI noted that the decline in female labour force participation, particularly in rural households of higher-income groups, could be attributed to unpaid helpers temporarily leaving the workforce to manage domestic responsibilities. These shifts were compounded by environmental factors such as unusually high temperatures, which hindered outdoor employment.In urban areas, the unemployment rate rose more modestly, with a slight decline seen in own-account workers and casual labourers. The ministry highlighted that monthly PLFS estimates can be influenced by seasonal, academic, and cyclical employment trends and should not be interpreted as long-term structural changes in the labour market.Current unemployment trends highlight the need for adaptable employment strategies to address the diverse challenges posed by seasonal conditions and demographic shifts. This calls for targeted policies that can mitigate the adverse effects of seasonal employment fluctuations and promote sustainable job growth.Overall, the data underscores the importance of understanding the nuanced dynamics of the labor market to formulate effective interventions that can support both immediate recovery and long-term resilience in employment.Must Watch

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Mint

8 hours ago

• Mint

The week in charts: Unemployment rises, Boeing totters, Apple's mojo fades

India's unemployment rate rose to 5.6% in May, with rural areas seeing a sharper rise. The tragic Air India crash has added to Boeing's struggles amid tough competition from rival Airbus. And the Israel-Iran conflict has caused oil prices to spike. Unemployment rises in urban rural India India's unemployment rate rose to 5.6% in May from 5.1% in April, according to the latest periodic labour force survey (PLFS) report released by the statistics ministry. The rise was on account of both rural and urban unemployment. Rural unemployment rose 60 basis points to 5.1%, while urban unemployment increased 40 basis points to 6.9%. The increase in joblessness could be attributed to seasonal patterns, especially in rural areas, where activity may pick up in June due to kharif sowing. Urban unemployment may need close monitoring. Also read: Last man in, first man out? Top execs prefer to stay than jump jobs Oil spikes amid conflict, but fuel has a buffer The escalating conflict between Israel and Iran has led to a surge in oil prices, with Brent crude futures currently hovering around $75 per barrel as opposed to a recent low of $64 per barrel average in May. While rising crude oil prices could impact India's growth and current account deficit, a significant impact on fuel prices is unlikely since the government has the buffer to cut excise duties on petrol and diesel. The recent trend shows petrol and diesel prices have remained stable despite volatility in crude oil prices. Wholesale inflation plunges to 14-month low 0.39%: That's India's wholesale inflation rate for May, a 14-month low, driven by falling prices of food, fuel and key manufacturing items. Wholesale food inflation dropped to 1.72%, with sharp deflation in vegetables, pulses and potatoes. This comes after retail inflation eased to a six-year low of 2.8%, signalling broad price stability. A favourable base, lower global commodity prices, and hopes of a normal monsoon are expected to keep inflation subdued in the coming months. Boeing's blues give Airbus the edge The recent Air India crash has added to Boeing's troubled run, which has severely hampered its operations and profitability. Between 2015 and 2025, Boeing saw 467 accidents and 1,458 deaths, compared to Airbus's 246 accidents and 564 deaths—despite similar fleet sizes, an analysis by showed. Boeing's reputation has taken repeated hits since the 737 Max crashes of 2018 and 2019, leading to grounded planes, inquiries and losses. Meanwhile, Airbus has stayed low-key but consistent, delivering more aircraft and reporting steady profits. India's trade balance improves India's trade deficit narrowed sharply to $21.9 billion in May from $26.4 billion in April, driven mainly by lower imports. Merchandise exports stood at $38.7 billion, up slightly from $38.5 billion in April. Imports on the other hand fell sharply to $60.6 billion from $64.9 billion in April. Falling crude and gold imports also supported the narrowing gap. While India's trade balance improved from the previous month and year-ago period in May, exports were 2.2% lower year-on-year. Also read: US-China trade war blows hot and cold for India Hindustan Zinc's capacity-boost plan ₹12,000 crore: That's the size of the new expansion plan by Hindustan Zinc Ltd to boost its metal capacity. According to a Mint report, the company plans to add a capacity of 250 kilo tonnes per annum (ktpa). This would be the first phase of its ambitious plan to double metal output over the next few years. To achieve its goals, the company's board has approved the investment to add a new smelter at its integrated zinc metal complex in Debari, Rajasthan. Apple's year to forget Apple's Worldwide Developers Conference (WWDC) 2025 was meant to showcase innovation. Instead, it highlighted the company's deeper struggles. Apple's shares have declined nearly 20% this year, marking the worst performance among big tech firms, an analysis by howindialives showed. The iPhone maker is facing persistent issues from stagnant sales, regulatory heat on its services business, to a shrinking Chinese market. While rivals push ahead in AI, Apple lags, relying on partners such as OpenAI. Overall, weak innovation and global pressures have made 2025 a tough year for the tech giant. Also read: Can Apple's 'affordable' iPhone 16e be a flagship-killer? Chart of the week: Nuke check Nine countries, including the US, Russia, UK, France and India, collectively held around 12,241 nuclear weapons, with about 3,912 deployed and 2,100 on high operational alert, a report by Stockholm International Peace Research Institute showed. The US and Russia together own nearly 90% of all nuclear warheads. Follow our data stories on the In Charts and Plain Facts pages.

Mint

9 hours ago

• Mint

Talent freeze: CXOs get picked, mid-level left waiting

From boardrooms to back offices, India Inc. is hitting the brakes on hiring. This time, it's not just about IT—mid-level managers are feeling the freeze, while top roles remain the only sure bet. The crisis in the Middle East, poor visibility and business realignment as companies measure the impact of artificial intelligence have caused hesitancy in the job market. Slower hiring in India's private sector mirrors the overall increase in unemployment, driven by fewer rural jobs. 'There is a degrowth in many sectors in terms of headcount addition. When compared quarter on quarter, most of the sectors have shown an 18-20% dip in hiring mandates," said Guruprasad Srinivasan, group chief executive officer (CEO) of staffing firm Quess Corp. 'The sectors are showing a kind of withdrawal symptom from hiring. Also read: Big Four feel the heat as promotions drop, clients tighten purse strings The year-on-year numbers do not look encouraging either. Quess has about 1,300 open mandates in the IT and Global Capability Center (GCC) sector, about 18% down from the April-June period of last year. Banking and financial services (BFSI) mandates have fallen by at least 20%, while auto and engineering by 13% in the first quarter of the fiscal year, when compared on a like-for-like basis. Srinivasan pointed out that the consumer and retail sector remains flat, while the only sector showing some growth is manufacturing and construction. The drop in hiring mandates at contract staffing firms reflects the increase in the unemployment rate to 5.6% in May from 5.1% in April. It was the domino effect of a shift in rural employment away from agriculture, according to data released Monday by the ministry of statistics and programme implementation (MoSPI). According to the MoSPI, the contraction in agricultural activity affected both men and women in rural areas. Changing tack Quess' rival TeamLease Services has also cautioned about a damp hiring environment. 'There is a relative slowdown in private sector hiring. Of the 600 million people participating in India's labour force, 80 million are employed in the formal sector. When further distilled, 6 million of the 80 million fall into the third-party contract staffing space," said Balasubramanian A., senior vice-president and business head at TeamLease Services. 'There may not be large-scale layoffs, but a measured approach in hiring." Also read: TCS offers vendor bonus to speed up quality hiring According to the Teamlease Employment Outlook report, 47% of employers anticipate workforce expansion, 25% expect reductions, and 28% foresee no change, resulting in net employment change (NEC) of +2.8% in the April-September months of this fiscal. The NEC for the earlier six months (October 2024-March 2025) was +7.1%, signalling a 'deliberate pivot toward demand-sensitive and cost-conscious hiring". The hiring industry includes staffing firms that provide a third-party workforce, where the employee works for a firm but is on the payroll of the hiring vendor. Then, there are recruitment companies that place junior and middle-management executives in companies. Search firms look at hiring top-level executives. Mint detailed in May how large tech-enabled businesses such as Zomato, Cars24, and Gupshup, among others, have laid off employees over the past quarter. Many others, such as Swiggy and Flipkart, have pruned divisions and reassigned staff to other roles. Globally, too, big tech firms like Microsoft are pruning their workforce. Mid-level executives Job opportunities for the middle-order executives were scarce in the April-June period. 'There is a 15% dip in the hiring mandates of executives who have four to eight years of experience in the consumer, pharmaceutical, hospitality and financial services," noted Anshuman Das, chief executive and co-founder of Careernet, a talent solutions provider. But a year-on-year comparison may be unjustified, as Das pointed out. 'When one compares on a like-to-like basis, the drop in hiring mandates will widen because there were no tariff-related challenges and the global uncertainty was still limited to the Russia-Ukraine war." Also read: Jumping jobs? A Supreme Court judgement just made it tough, for freshers Leadership hiring is turning out to be a mixed bag and some businesses are urgently looking for CXOs. In fact, Mint wrote this week that even in the case of open positions, job seekers are hesitant about joining a new firm as they are afraid of sudden changes in the firm's need for a new person as the geopolitical climate and global economy play truant. The last man in will be the first one out—a fear that has gripped many. 'It is client specific and we are seeing good traction in industrial manufacturing, pharmaceutical, automotive and auto ancillary and Indian firms who want to set up base in Africa and Latin America," said K. Sudarshan, managing director for the search firm EMA Partners India Ltd. He pointed out that the FMCG hiring, on the other hand, is 'tepid".

Business Standard

16 hours ago

• Business Standard

GDP base revision could be done more frequently in future: Rao Inderjit

MoSPI is examining the feasibility of salvaging the data of 7th Economic Census in consultation with states/UTs Shiva Rajora New Delhi Listen to This Article The Indian Statistical System will play a key role in 'data-driven' decision making by the government in the journey towards Viksit Bharat 2047, says Rao Inderjit Singh, Union minister of state (independent charge), Ministry of Statistics and Programme Implementation (Mospi), in an email interview with Shiva Rajora. Edited excerpts. Your ministry is extensively focusing on technology to collect, process, and disseminate data and also on using alternative data sources. How are these changes driving the transformation in the ministry? How does it benefit data users? Prime Minister Narendra Modi has said: 'We must become tech-savvy so that every policy and