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India’s Unemployment Rate Climbs to 5.6% in May

The Ministry of Statistics and Programme Implementation links the increase to seasonal harvest cycles that reduced job availability under high summer heat constraints on outdoor work.

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Overview

  • Data from the second monthly PLFS report show unemployment rising to 5.6% from 5.1% in April, a 50 basis point jump.
  • Female unemployment edged up to 5.8%, surpassing the 5.6% rate recorded for men.
  • Unemployment among 15–29 year olds climbed to 15%, driven by rural youth at 13.7% and urban at 17.9%.
  • The Labour Force Participation Rate dropped to 54.8% and the Worker Population Ratio fell to 51.7%, reflecting fewer people working or seeking jobs.
  • MoSPI cautions that monthly PLFS readings can fluctuate due to seasonal harvest cycles and high temperatures and may not reflect long-term labour market trends.