India’s unemployment rate rises to 5.6% in May amid farm slowdown

Published 16/06/2025, 13:46
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Investing.com -- India’s unemployment rate increased to 5.6% in May from 5.1% in April, according to data released by the statistics ministry Monday.

The rise in unemployment was partly attributed to reduced farm activity following the end of the harvest season. This marks the second monthly release of India’s labor force data covering both urban and rural areas, a change from the previous quarterly urban and annual comprehensive reporting schedule.

Despite the uptick in unemployment, Asia’s third largest economy expanded 7.4% year-on-year in the January-March quarter and is projected to grow 6.5% in the current fiscal year that began in April, maintaining a pace similar to the previous year.

The data revealed that women faced a slightly higher unemployment rate at 5.8% in May, compared to 5.6% for men.

Youth unemployment showed concerning trends, with the rate among urban youth aged 15 to 29 years climbing to 17.9% in May from 17.2% in April. Rural youth experienced an even sharper increase, with joblessness rising to 13.7% from 12.3% during the same period.

In rural areas, employment patterns shifted away from agriculture toward manufacturing and services sectors. The share of workers in the farm sector declined to 43.5% in May from 45.9% in April, primarily due to the seasonal drop in agricultural activity after the harvest season ended.

The post-harvest decline also negatively impacted work opportunities for women in rural regions. The labor force participation rate among rural women fell to 27.8% in May from 28.8% in April.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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