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1h ago

India’s Unemployment Rate Falls to 5.2% in July

Labour force participation rose to 54.9% as officials defended the monthly survey’s methodology against private challenges

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Overview

  • Unemployment dropped to 5.2% in July from 5.6% in June, driven by higher rural hiring before the festival season and increased agricultural activity.
  • The labour force participation rate climbed to 54.9% in July from 54.2% in June, marking its highest level since the PLFS began monthly reporting in April.
  • Rural joblessness eased to 4.4% while urban unemployment inched up to 7.2%, highlighting divergent seasonal trends between farm-based and city employment.
  • Youth joblessness fell to 13% among rural 15- to 29-year-olds but rose to 19% for their urban counterparts in July.
  • Critics point to seasonal volatility and higher private estimates of joblessness, prompting Ministry of Statistics officials to defend the revamped PLFS methodology.