India’s Unemployment Rises To 5.6% In May 2025

India’s unemployment rate increased to 5.6% in May 2025, rising from 5.1% in April, according to the latest report from the Ministry of Statistics and Programme Implementation (MoSPI). The increase in joblessness is seen in both rural and urban areas, with young people and women facing the most pressure in the job market.

Rising Youth Unemployment in Rural and Urban Areas

The biggest rise in unemployment was among young people aged 15–29 years.

In rural areas, youth unemployment went up to 13.7% in May, compared to 12.3% in April.

In urban areas, the rate rose to 17.9% in May, up from 17.2% the previous month.

This indicates that many young Indians are struggling to find jobs, especially in villages and cities where economic activity was hit by seasonal slowdowns and extreme heat.

Female Unemployment Slightly Higher Than Men

Women continued to face higher unemployment rates compared to men:

Women’s unemployment rate in May was 5.8%, while

Men’s unemployment rate stood at 5.6%.

The gap may seem small, but it highlights a persistent challenge for women trying to enter or remain in the workforce, especially in rural households where unpaid family work or domestic responsibilities often limit participation.

Labour Force Participation Rate (LFPR) Declines

The Labour Force Participation Rate (LFPR), which shows the percentage of people actively working or looking for work, also fell to 54.8% in May, down from 55.6% in April.

Rural LFPR was 56.9%, while

Urban LFPR was lower at 50.4%.

For Men:

Rural LFPR: 78.3%

Urban LFPR: 75.1%
(Both saw a slight drop from April)

For Women:

Rural LFPR: 36.9%

Urban LFPR: much lower (data suggests a continuing gap)

This means fewer people, especially women, were working or looking for jobs in May 2025.

Worker Population Ratio (WPR) Also Down

The Worker Population Ratio (WPR)—which shows the actual number of people working—also declined in May.

Overall WPR: Dropped to 51.7% (from 52.8% in April)

Rural WPR: 54.1%

Urban WPR: 46.9%

Female WPR:

Rural women: 35.2%

Urban women: only 23.0%

Overall female WPR: 31.3%

These numbers show that only about one-third of women are working in rural India, and even fewer in cities.

Why the Drop?

The government says that the drop in job participation and rise in unemployment is due to seasonal changes and extreme summer temperatures, which impacted agricultural and outdoor work in several regions.

Also, in higher-income rural households, many women who usually help with unpaid work may have taken time off for household duties, further reducing their presence in the workforce.

Final Thoughts

The May 2025 jobs report reflects a temporary slowdown in economic activity caused by weather conditions and seasonal farming cycles. But the consistent low participation of women and the high youth unemployment highlight long-term issues in India’s labour market.

To address this, policy changes to create more rural jobs, support women workers, and train youth could play a big role in improving employment figures in the coming months.