Unemployment rate rises to 5.6 pc in May, female joblessness higher at 5.8pc

New Delhi: The rate of unemployment in the country, measured in a monthly term, rose to 5.6 per cent in May from 5.1 per cent in April this year, mainly due to seasonal variation, according to the government data released on Monday.

Earlier last month, the Ministry of Statistics & Programme Implementation released the first monthly Periodic Labour Force Survey (PLFS) as part of efforts to monitor the proportion of unemployed people among those eligible for jobs in the country in real-time.

The latest data collected in the current weekly status (CWS) showed that the unemployment rate (UR) for persons of all ages during May 2025 rose to 5.6 per cent from 5.1 per cent in April 2025.

The Labour Force Participation Rate (LFPR)—which measures the proportion of people aged 15 and above who are either working or actively seeking work—in the Current Weekly Status (CWS) stood at 54.8% in May 2025, down from 55.6% in April. Rural LFPR was higher at 56.9%, while urban LFPR was 50.4%.

For men in this age group, rural and urban LFPRs dipped slightly to 78.3% and 75.1%, respectively, from 79.0% and 75.3% in April. Among rural women, the LFPR was significantly lower at 36.9%.

The Worker Population Ratio (WPR) also slipped month-on-month. In May 2025, the WPR in rural areas for persons aged 15 and above was 54.1%, while in urban areas, it stood at 46.9%. The overall WPR declined to 51.7% in May from 52.8% in April.

Female participation in the workforce remained low, with the WPR for women at 35.2% in rural areas and just 23.0% in urban centres. The overall female WPR was recorded at 31.3%.

Unemployment rise tied to seasonal trends, says MoSPI

Changes in the monthly PLFS estimates are often influenced by a mix of seasonal, academic, and labour market-related factors, and may not necessarily signal long-term or structural shifts in employment trends. The latest May data reflects this complexity, as employment in rural areas shifted away from the primary sector—particularly agriculture—dropping from 45.9% in April to 43.5% in May 2025.

This coincided with the end of the Rabi harvest season, which typically leads to a temporary reduction in agricultural jobs for both men and women.

According to MoSPI, the decline in the LFPR and WPR, alongside the rise in the Unemployment Rate (UR), was largely driven by seasonal agricultural patterns and higher temperatures in May, which limited outdoor work in several regions.

The ministry noted that in some higher-income rural households—particularly in the top three deciles—unpaid helpers, especially women, may have temporarily withdrawn from the workforce to attend to domestic responsibilities.

In urban areas, the changes were more marginal, with small declines seen in own-account workers and casual labourers contributing to a subdued rise in the unemployment rate.