Unemployment Rising
India May unemployment rate at 11-month high as rural joblessness rises
This story was originally published at 17:03 IST on 15 June 2026
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--MoSPI: India unemployment rate 5.5% in May vs 5.2% in Apr
--CONTEXT: MoSPI releases Periodic Labour Force Survey for May
--MoSPI: India rural unemployment rate 5.1% in May vs 4.6% in Apr
--MoSPI: India urban unemployment rate 6.4% in May vs 6.6% in Apr
--MoSPI: India labour force participation rate 54.4% in May vs 55.0% Apr
--MoSPI: India worker population ratio rate 51.4% in May vs 52.2% Apr
NEW DELHI – India's unemployment rate for people aged 15 and above rose to an 11-month high of 5.5% in May, mainly because of a jump in rural joblessness. The overall unemployment rate rose last month despite a fall in joblessness in urban areas, according to the Periodic Labour Force Survey for May released Monday.
Overall unemployment rose from 5.2% in April and was the highest since June 2025, survey results released by the Ministry of Statistics and Programme Implementation showed. Rural unemployment for those aged 15 and above rose to a one-year high of 5.1% in May from 4.6% in April. For urban areas, it fell to a series low of 6.4% in May from 6.6% in April.
The difference in rural and urban unemployment rates is narrowing. Rural unemployment has been rising for three consecutive months, while urban joblessness has been on the decline for two months in a row.
The unemployment rate for females aged 15 and above rose to a four-month high of 5.6% last month, up from 5.4% in April. The unemployment rate was higher for women in urban areas but fell to the lowest monthly rate on record at 8.2% in May. For males, the unemployment rate jumped to 5.4% in May from 5.1% a month ago.
Youth unemployment--for those aged between 15 and 29 years--increased to 15.9% in May from 15.3% in April. Joblessness among the youth rose in rural areas in May while it declined in urban areas.
The labour force participation rate--the percentage of persons working or seeking or available for work--eased to an 11-month low of 54.4% in May from 55.0% in April. The labour force participation rate was higher in rural areas at 56.6% than in urban areas at 49.8%. The female labour force participation rate fell to an 11-month low of 32.8% in May from 33.9% in April.
The worker population ratio--the percentage of employed persons in the population--for those aged 15 and above also slid to an 11-month low of 51.4% last month from 52.2% in April.
"The moderation in LFPR (labour force participation rate) and WPR (worker population ratio) with an increase in UR (unemployment rate) indicates a softening of labour market conditions during the period," the ministry said in a release. "While labour force participation declined marginally, employment opportunities contracted at a faster pace, leading to a rise in the proportion of unemployed persons within the labour force. The decline in labour market indicators may be linked to a seasonal moderation in economic activity during May 2026." End
Reported by Shubham Rana
Edited by Avishek Dutta and Rajeev Pai
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