Unemployment rate in India remains steady at 5.6% in June, compared to the previous month
In a recent report by the Ministry of Statistics and Programme Implementation (MOSPI), it has been revealed that the unemployment rate in India has seen an increase from April to June 2025, with urban areas experiencing a notable rise.
The unemployment rate for individuals aged 15 and over in India was 5.6% in June 2025. However, urban unemployment has risen steadily from 6.5% in April 2025 to 7.1% in June 2025. Among urban women aged 15 and above, unemployment was 8.7% in April, 9.1% in May, and 8.7% in June.
One of the key reasons for this rise in urban unemployment is the high unemployment rate among youth (15-29 years), which increased from 17.2% in April to 18.8% in June. The unemployment rate for female youth saw a significant increase, rising by 140 basis points to 25.8% in June.
Another factor contributing to the rise in urban unemployment is the decline in Labour Force Participation Rate (LFPR) in urban areas. The LFPR in urban areas decreased, meaning fewer people are actively looking for work. This could be due to discouragement from the job market or opting for alternative forms of engagement outside the formal workforce.
While rural areas saw a decrease in unemployment rates due to more people engaging in own-account work or small-scale activities, urban areas experienced an increase. This dichotomy highlights the challenges faced by urban sectors in providing employment opportunities compared to rural areas.
It's important to note that the unemployment data is based on the Current weekly status (CWS) approach, which captures a person's employment status during the seven days prior to the survey. The LFPR in Current Weekly Status (CWS) among persons of age 15 years and above was 54.2% in June 2025, down from 54.8% in May 2025.
The report also reveals rural unemployment was 4.9% in June 2025, while urban unemployment was 7.1%. The marginal decline in LFPR and WPR in June 2025 was largely influenced by seasonal agricultural patterns, intense summer heat, and a shift of some unpaid helpers towards domestic chores.
In conclusion, the rise in urban unemployment in India over the last three months can be attributed to several factors, particularly affecting women and youth. Addressing these issues will be crucial to ensuring a more equitable job market and promoting sustainable economic growth.
- The increase in urban unemployment rates might be a topic of intense discussion in the realm of policy-and-legislation, as it could necessitate new measures to combat joblessness, particularly among youth and women.
- General-news outlets are likely to focus on the inequities between urban and rural employment opportunities, as urban unemployment continues to increase while rural areas see a decrease, which could influence political debates and economic policies.
