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India Rejects Economists’ Higher Jobless Estimates and Defends PLFS Data

The labour ministry dismissed a Reuters economists’ poll as perception-based, asserting that meticulously gathered PLFS data holding unemployment at 5.6% remain robust.

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Overview

  • The Ministry of Labour and Employment issued a formal rebuttal to a Reuters poll of about 50 economists that suggested India’s true unemployment rate could be nearly double the official 5.6% for June 2025.
  • Officials characterised the poll as lacking statistical foundation and prone to selection bias due to undisclosed participants and methodology.
  • The government reaffirmed the PLFS’s monthly calendar-year estimates as scientifically rigorous, internationally benchmarked, and transparent.
  • External critics, including economist Amit Mitra and data from the Centre for Monitoring Indian Economy, continue to argue that the actual jobless rate exceeds 8%, highlighting a persistent credibility gap.
  • Latest PLFS figures show a steady unemployment rate of 5.6% and record growth in own-account work, which policymakers credit with absorbing labour in the absence of formal jobs.