Unemployment rate hits 11-month high of 5.5% in May

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India’s unemployment rate rose to an 11-month high of 5.5% in May from 5.2% in April, mainly due to an increase in the rural jobless rate, official data released Monday showed.

Rural unemployment rate increased to a 12-month high of 5.1% in May from 4.6% in April, while the urban jobless rate eased to 6.4% from 6.6% in April. The easing in urban unemployment was particularly noticeable among women, which dropped to 8.2% in May from 8.5% in April. Urban male unemployment remained unchanged at 5.9%.

“The decline in labour market indicators may be linked to a seasonal moderation in economic activity during May,” the statistics ministry said in a statement.

Overall, women continued to face higher unemployment, with a rate of 5.6% in May compared to 5.4% for men, according to the Periodic Labour Force Survey (PLFS).

The data covers individuals aged 15 years and above who were unemployed but actively seeking work. It is based on the current weekly status (CWS), which measures employment or job-seeking activity over the seven days preceding the survey.


Youth unemployment (15-29 years) edged up to 15.9% in May from 15.3% in April. The rate for young men increased to 14.9% from 14.1%, while for young women it increased slightly to 18.9% from 18.7%.

The survey covered 88,953 households and 373,887 individuals across rural and urban areas.Labour force participation largely stable

The labour force participation rate (LFPR), the share of the population working or seeking work, remained broadly steady, though it slipped to an 11-month low of 54.4% in May from 55% in April.

The worker population ratio (WPR), or employment rate, also decreased to 51.4% in May from 52.2% in April. Male and female WPR slipped to 72.5% and 31%, respectively.

“The moderation in LFPR and WPR with an increase in UR indicates a softening of labour market conditions during the period,” the ministry said.

Male participation fell to 76.7% from 77.1%, while the female LFPR fell to 32.8% from 33.9%.

In rural areas, LFPR dropped to 56.6% from 57.5%, while in urban areas it fell to 49.8% from 50.1%.

Youth participation also weakened, with LFPR falling to 40.4% in May from 41.2% the month before. Among young men, it declined marginally to 60.1% from 60.4%, while for young women it slipped to 20.3% from 21.9%.



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