Indian Unemployment Rate Remains Steady at 5.6% in June, Youth Jobless Rate Rises to 15.3%

India's jobless rate remained steady at 5.6% in June, with a slight increase in urban unemployment to 7.1% and a decline in labor force participation to 54.2%. Youth unemployment for those aged 15-29 was 15.3%. The survey considers a person employed if they worked for at least one hour in the preceding seven days.

India's jobless rate remained steady at 5.6% in June 2025, according to the latest data from the Periodic Labour Force Survey (PLFS) [1]. This figure marks a marginal decline in labor force participation to 54.2%, down from 54.8% in May. The unemployment rate in urban areas increased slightly to 7.1%, while rural unemployment remained steady at 4.6%.

The PLFS data highlights a seasonal decline in labor force participation, driven by intense summer heat limiting outdoor physical work and a reduction in unpaid agricultural helpers, particularly among rural women [1]. The Worker Population Ratio (WPR), which measures the proportion of employed persons in the population, also fell marginally to 51.2% in June from 51.7% in May. The WPR in rural areas was 53.3%, while in urban areas it stood at 46.8%.

Among rural women, labor force participation stood at 35.2% in June, with a notable drop in unpaid agricultural helpers. The proportion of rural female workers engaged in agriculture slipped to 69.8% in June from 70.2% in May, indicating a reduced need for female agricultural labor [1].

Youth unemployment, particularly for those aged 15-29, remained high at 15.3%. The survey considers a person employed if they worked for at least one hour in the preceding seven days. This age group is a significant concern, with joblessness among individuals in the 15-29 age group at 13.8% nationwide [3].

The steady unemployment rate in rural areas was supported by an increase in own-account workers as seasonal factors drove more people into such activities [1]. However, the overall trend indicates a need for continued vigilance and policy interventions to address the persistent issue of youth unemployment and labor force participation.

References:
[1] https://upstox.com/news/business-news/economy/india-s-labour-force-participation-slips-in-june-unemployment-holds-at-5-6-govt-data/article-178120/
[2] https://www.reuters.com/world/india/indias-cooling-inflation-prompts-rate-cut-calls-raises-concerns-over-weakening-2025-07-15/
[3] https://www.jkpi.org/unemployment-in-indias-evolving-economy-a-case-study-of-jammu-kashmir/