India Jun unemployment rate stays at 5.6%, urban areas joblessness up
MoSPI
This story was originally published at 16:54 IST on 15 July 2025
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--MoSPI: All-India unemployment rate 5.6% in Jun vs 5.6% in May
--CONTEXT: MoSPI releases Periodic Labour Force Survey for Jun
--MoSPI: All-India labour force participation rate 54.2% in Jun vs 54.8% May
--MoSPI: All-India worker population ratio 51.2% in Jun vs 51.7% May
--MoSPI: All-India rural unemployment rate 4.9% in Jun vs 5.1% in May
--MoSPI: All-India urban unemployment rate 7.1% in Jun vs 6.9% in May
NEW DELHI – India's unemployment rate remained at 5.6% in June, unchanged from a month ago, according to the monthly Periodic Labour Force Survey from the Ministry of Statistics and Programme Implementation released Tuesday. The joblessness rate in urban areas increased to 7.1% last month from 6.9% in May. For rural areas, it fell to 4.9% in June from 5.1% in May.
The statistics ministry now releases unemployment data on a monthly basis for both rural and urban areas. Previously, the ministry only released quarterly urban unemployment data, and annual data for both urban and rural areas. The ministry will release the Apr-Jun unemployment data for urban and rural India in August.
The statistics ministry said the fall in unemployment rate for rural areas is because of an increase in the share of own-account workers in June compared with May. The rise in own-account work during this period may be driven by seasonal factors, prompting individuals to engage in small-scale or self-initiated activities such as repair work or services, the ministry said.
The labour force participation rate--the percentage of persons working or seeking or available for work--moderated to 54.2% last month from 54.8% in May for persons aged 15 years and above. The worker population ratio, which is the percentage of employed persons in the population, declined to 51.2% in June from 51.7% a month ago.
"The marginal decline in LFPR (labour force participation rate) and WPR (worker population ratio) in June was largely influenced by seasonal agricultural patterns, intense summer heat limiting outdoor physical work, and a shift of some unpaid helpers, particularly from higher-income rural households, towards domestic chores," the statistics ministry said in a release.
The labour force participation rate was higher in rural areas at 56.1% compared with 50.4% in urban areas. The participation rate was sharply higher for men than for women. The all-India labour force participation rate in June was 77.1% for men and 32.0% for women in the age group of 15 years and above.
The participation rate fell sharply for women in rural areas to 35.2% last month from 36.9% in May. This was primarily because of a reduction in unpaid helpers typically engaged in agricultural work, the ministry said. "Data shows that several unpaid helpers in June reported themselves as engaged in domestic duties, contributing to a decline in the labour force, especially among higher-income rural households."
The share of rural female workers in agriculture dropped to 69.8% in June from 70.2% in May, indicating reduced need for agricultural engagement among women, perhaps due to a decline in rural inflation, the ministry said. End
Reported by Shubham Rana
Edited by Vandana Hingorani
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