Key facts
- India's overall unemployment rate rose to 5.5% in May, up from 5.2% in April.
- Rural unemployment reached a 12-month high of 5.1% in May.
- Urban unemployment eased to 6.4% in May, with a notable decrease among women.
- Youth unemployment increased to 15.9% in May.
- The labor force participation rate declined to 54.4% in May, an 11-month low.
- The worker population ratio also decreased to 51.4% in May.
India's unemployment rate climbed to 5.5% in May, marking an 11-month high and an increase from 5.2% in April. This rise was primarily attributed to a higher jobless rate in rural areas, which increased to 5.1% in May from 4.6% in the previous month.
Conversely, the urban unemployment rate saw a slight decrease, falling to 6.4% from 6.6% in April. This improvement in urban areas was particularly evident among women, whose unemployment rate dropped to 8.2% from 8.5%, while urban male unemployment remained steady at 5.9%.
The youth unemployment rate, covering individuals aged 15-29, also edged up to 15.9% in May from 15.3% in April. For young men, the rate rose to 14.9% from 14.1%, and for young women, it increased slightly to 18.9% from 18.7%.
Overall labor market indicators showed a softening trend. The labor force participation rate (LFPR), which measures the proportion of the population working or seeking work, declined to an 11-month low of 54.4% in May from 55% in April. Similarly, the worker population ratio (WPR), or employment rate, decreased to 51.4% from 52.2%.
The statistics ministry stated that the decline in labor market indicators may be linked to a seasonal moderation in economic activity during May. The survey, which covered 88,953 households and 373,887 individuals, also indicated that women continued to face higher unemployment rates overall, with 5.6% in May compared to 5.4% for men.