India’s unemployment rate remained unchanged at 5.6% in June 2025 for individuals aged 15 and above, according to the latest Periodic Labour Force Survey (PLFS) released on Tuesday.
The national figure held steady despite variations between rural and urban regions.
In urban areas, the unemployment rate edged up slightly to 7.1% in June from 6.9% in May. Conversely, rural unemployment saw a dip, dropping to 4.9% from 5.1% during the same period.
The improvement in rural employment conditions was attributed to an increase in "own-account workers" - individuals engaged in self-driven income-generating activities such as small trade, services, and repair work. The PLFS noted this rise was likely influenced by seasonal trends and a reduction in the total number of unemployed individuals.
Meanwhile, India’s labour force participation rate (LFPR) dipped slightly from 54.8% in May to 54.2% in June. The worker population ratio (WPR), which indicates the proportion of people employed in the population, also declined marginally to 51.2% from 51.7%.
The report attributed the slight reductions in LFPR and WPR to seasonal shifts in agricultural activity, extreme summer heat affecting outdoor work, and a notable drop in unpaid helpers - particularly among rural women from wealthier households - who transitioned to domestic responsibilities during this period.
Among rural women, the data showed a more than one percentage point decrease in participation in the workforce, largely due to a decline in unpaid agricultural labor roles.
Despite these shifts, the overall unemployment rate suggests a relatively stable labour market, though the underlying rural-urban trends and gender disparities continue to highlight structural challenges.