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India’s Unemployment Rate Holds at 5.6% as Urban Rate Reaches 7.1%

Rural self-employment growth offset June’s decline in labour force participation.

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Overview

  • India’s unemployment rate remained at 5.6% in June 2025, unchanged from May, according to the Ministry of Statistics and Programme Implementation.
  • Urban joblessness climbed to 7.1%, marking a third consecutive month of rising city unemployment.
  • Rural unemployment eased to 4.9% as more workers engaged in own-account activities in agriculture and small-scale trades.
  • Youth unemployment rose to 18.8% in urban areas and 13.8% in rural regions, underscoring mounting challenges for 15- to 29-year-olds.
  • The Labour Force Participation Rate dipped to 54.2% and the Worker Population Ratio fell to 51.2%, influenced by seasonal harvest cycles.