India's Unemployment Rate Stays At 5.6% In June Despite Modest Uptick In Urban Areas
The unemployment rate slipped in rural areas for both male and female sections of the workforce.
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.
