India's Unemployment Rate Stays At 5.6% In June Despite Modest Uptick In Urban Areas

Unemployment rate among persons of age 15 years and above has remained at 5.6% in June, according to the periodic labour force survey published on Tuesday. It saw a modest uptick to 7.1% for urban areas compared to 6.9% in May. For rural areas it saw a downtick to 4.9% from 5.1% in May.

The decrease in the unemployment rate for rural areas for both male and female can be attributed to an increase in the share of own-account workers in June 2025 compared to May 2025, along with a reduction in the number of unemployed persons, the survey stated.

The rise in own-account work during this period may be driven by seasonal factors, prompting individuals to engage in small-scale or self-initiated activities such as petty trade, repair work, or services, the survey explained.

Labour force participation rose saw a marginal decline to 54.2% in June from 54.8% in May. Worker population ratio eased to 51.2% in June from 51.7% in May.

The marginal decline in labour force participation and worker participation rate in June 2025 was largely influenced by seasonal agricultural patterns, intense summer heat limiting outdoor physical work, and a shift of some unpaid helpers, particularly from higher-income rural households, towards domestic chores, the bulletin stated.

This trend was more pronounced among rural females, where over a 1-percentage point decline in workforce participation was observed compared to May 2025, primarily due to a reduction in unpaid helpers typically engaged in agricultural work.