The unemployment rate in the country remained stable at 5.6% in June 2025. This figure is equal to May. This information has come out from the late Periodic Labor Force Survey (PLFS) report of the Ministry of Statistics and Program Implementation (MOSPI) on Tuesday. However, unemployment in rural areas decreased slightly, but it increased in urban areas. Especially unemployment figure among youth is going to increase anxiety.
Relief in rural areas, tension in cities
According to the PLFS report, the unemployment rate in rural areas declined from 5.1% of May to 4.9% in June. But it turned upside down in urban areas. Unemployment increased from 6.9% to 7.1% there. That is, people looking for jobs in cities are facing more problems. There is probably some relief due to employment schemes like farming and MNREGA in rural areas, but the lack of formal jobs in cities is clearly visible.
Unemployment in youth
Talking about the youth of 15 to 29 years, the situation of unemployment is more worrying. Unemployment in this age group in rural areas increased from 13.7% of May to 13.8% in June. At the same time, this figure is even more intimidating in urban areas. It was 17.9% in May, which increased to 18.8% in June. That is, every fifth youth in cities is unemployed. These figures are telling how difficult it is for the youth to get a job.
No difference between male and female unemployment
In June 2025, the unemployment rate of both men and women was 5.6%. That is, there was no gender difference in this case. But if you go deep, then the difference between urban and rural areas is clear. The unemployment rate of women in cities was higher than that of men, while in rural areas it is reverse. This difference can be due to social and economic factors.
Labor Force Participation Rate falls
Labor Force Participation Rate (LFPR), ie those people who are either working or looking for jobs, decreased slightly in June 2025. It was 41.4% in May, which came to 41.0% in June. LFPR in rural areas was 56.9%, while in urban areas it was 50.4%. LFPR was 78.1% in rural areas and 75.0% in urban areas. At the same time, it was 35.2% in rural areas and 25.2% in urban areas in rural areas. That is, women, especially in urban areas, are looking for a small number of jobs.
Data will be released every month
This is the third time the government has released monthly employment data of both urban and rural areas. Earlier this data used to come to urban areas on quarterly basis and both for both regions on an annual basis. Now, with monthly data, policy makers will get more accurate and fresh information, so that the situation of unemployment and employment will be better understood.
Let us know that Asia’s third largest economy, ie India, had registered an annual increase of 7.4% in the January-March quarter. The current financial year (starting from April) is expected to increase by 6.5%, which is equivalent to last year.