Context:
India’s unemployment rate for individuals aged 15 years and above rose to 5.6% in May 2025, up from 5.1% in April, as per the Periodic Labour Force Survey (PLFS) Monthly Bulletin. The labour force participation rate (LFPR) also declined, indicating tighter labour market conditions exacerbated by extreme summer heat and seasonal shifts in employment patterns.
Key Labour Market Indicators (May 2025)
- Unemployment Rate (15+ age group)
- Overall: 5.6% (up from 5.1% in April)
- Males: 5.6% (up from 5.2%)
- Females: 5.8% (up from 5.0%)
- Youth Unemployment Rate (15–29 years)
- Rural Males: 14% (up from 13%)
- Rural Females: 13% (up from 10.7%)
- Urban Males: 15.8% (up from 15%)
- Urban Females: 24.4% (up from 23.7%)
- Labour Force Participation Rate (LFPR) – 15+ years
- Overall: 54.8% (down from 55.6%)
- Rural: 56.9%
- Urban: 50.4%
Sectoral and Gender Trends
- Shift in Employment Sectors (Rural):
- Share of employment in agriculture declined from 45.9% in April to 43.5% in May.
- Workers shifted to secondary (manufacturing, construction) and services sectors.
- This transition was seasonal and coincided with the end of the Rabi harvest.
- Female Workforce Dynamics:
- Female LFPR in rural areas fell significantly (more than 1 percentage point).
- Fewer women participated as casual labourers or unpaid family helpers.
- There was a reported movement of women from unpaid work to domestic chores, particularly in higher-income rural households.
Contributing Factors
- Heatwave Conditions: Suppressed outdoor employment activities, especially in agriculture and construction.
- Seasonality: Post-harvest decline in demand for farm labour.
- Socioeconomic Shifts: Changing labour dynamics in rural higher-income deciles.
