Unemployment Rate Holds Steady At 5.6 Per Cent In June; Youth Joblessness Continues To Climb

The figures, released on Tuesday as part of the new monthly edition of the Periodic Labour Force Survey (PLFS), offer a snapshot of employment dynamics in near real-time through the CWS approach.

Urban unemployment saw a sharper rise, touching 18.8 per cent in June compared to 17.9 per cent in May, reflecting challenges in job creation in metropolitan regions.

Source : Freepik

India’s unemployment rate remained unchanged at 5.6 per cent in June 2025, maintaining the same level as reported in May, according to the latest data from the Ministry of Statistics & Programme Implementation.

The figures, released on Tuesday as part of the new monthly edition of the Periodic Labour Force Survey (PLFS), offer a snapshot of employment dynamics in near real-time through the Current Weekly Status (CWS) approach.

Although the overall unemployment rate remained flat, the youth segment—those aged 15 to 29—witnessed a slight uptick in joblessness, increasing to 15.3 per cent in June from 15 per cent in the preceding month, reported PTI.

The rate of unemployment among females aged 15–29 also rose to 17.4 per cent in June, up from 16.3 per cent in May. Among males in the same age group, the joblessness rate edged up to 14.7 per cent from 14.5 per cent.

Urban Joblessness Rises as Rural Labour Trends Shift

Urban unemployment saw a sharper rise, touching 18.8 per cent in June compared to 17.9 per cent in May, reflecting challenges in job creation in metropolitan regions. Rural unemployment also registered a marginal increase, from 13.7 per cent in May to 13.8 per cent in June.

Interestingly, the slight decline in rural joblessness among both men and women was attributed to an increase in own-account work—seasonal self-employment in activities such as petty trade, repair services, and other informal engagements. This trend was especially notable among higher-income households, where unpaid helpers, particularly rural women, shifted from agriculture to domestic responsibilities.

The share of rural female workers engaged in agriculture dipped from 70.2 per cent in May to 69.8 per cent in June, possibly influenced by lower rural inflation and reduced demand for agricultural labour.

Labour Force Participation and Worker Population Ratio Dip

The Labour Force Participation Rate (LFPR) among individuals aged 15 years and above declined slightly to 54.2 per cent in June from 54.8 per cent in May. In rural areas, the LFPR stood at 56.1 per cent, while urban areas recorded 50.4 per cent. Among men, LFPR was 78.1 per cent in rural and 75.0 per cent in urban areas. For women, the rural LFPR was 35.2 per cent.

The Worker Population Ratio (WPR), which indicates the proportion of employed individuals in the population, also declined. In June, rural WPR stood at 53.3 per cent, while urban WPR was 46.8 per cent. The overall national WPR came in at 51.2 per cent, slightly below May’s 51.7 per cent. Among females, the WPR was 33.6 per cent in rural areas and 22.9 per cent in urban regions, with a national average of 30.2 per cent.

The Ministry noted that the minor fall in participation rates was likely influenced by seasonal agricultural patterns, extreme summer temperatures affecting outdoor work, and a shift among rural women from unpaid labour to household responsibilities.

To improve the granularity and timeliness of employment data, the PLFS survey design was revamped in January 2025. The latest quarter’s results are based on data from 7,520 sample units and responses from 89,493 households, covering a total of 3,80,538 individuals nationwide.