India’s unemployment rate climbed to 5.6% in May, up from 5.1% in April, according to data released by the Union government on Monday. The rise has been attributed to a combination of seasonal, academic, and labour market-related factors.
The Ministry of Statistics and Programme Implementation’s second-ever Periodic Labour Force Survey report revealed that unemployment in May was slightly higher among females at 5.8%, compared to 5.6% among males.
Among the 15 to 29 age group, joblessness increased to 15% in May, up from 13.8% in April, the report indicated.
The increase in unemployment was more pronounced in rural areas than in urban centres. Rural unemployment rose to 13.7% in May from 12.3% in April, while urban unemployment increased to 17.9% from 17.2%.
The statistics ministry noted a shift in rural employment away from the primary sector of agriculture toward the secondary and services sectors. Agricultural employment declined to 43.5% in May from 45.9% in April.
The government explained that the reduction in agricultural activities, following the end of the Rabi harvest season for both men and women in rural areas, likely contributed to the decline in the number of workers.
Additionally, the government pointed to a decline in the female labour force participation rate in May, which was attributed to fewer women working as casual labourers and unpaid helpers.
The overall labour force participation rate (LFPR) — the percentage of the working-age population either employed or actively seeking employment — for persons aged 15 years and above stood at 54.8% in May, down from 55.6% in April. The LFPR decreased to 78.3% from 79% for men and to 36.9% from 38.2% for women.
The worker-population ratio, representing the proportion of employed individuals within a population, also fell to 51.7% in May from 52.8% in April. For males, this ratio declined to 72.9% from 73.7%, and for females to 31.3% from 32.5%.
These figures collectively highlight ongoing challenges in India’s labour market, particularly affecting youth and rural workers amid seasonal shifts in agricultural activity.