India’s urban unemployment rate dips to 6.4 per cent in May

New Delhi, June 15 (IANS) Overall unemployment rate (UR) for people above 15 years of age in urban areas declined to 6.4 per cent in May this year from 6.9 per cent in the same month last year while the female unemployment rate in urban areas declined to a year’s low of 8.2 per cent during the month, according to figures released by the National Statistics Office on Monday.

The overall UR remained stable, while the rural UR maintained the same level of 5.1 per cent over the same period, the official statement said.

The overall labour force participation rate (LFPR), which is an indicator of the level of employment, was recorded as 54.4 per cent in May remained steady compared to 54.8 per cent in the same month last year 2025.

Similarly, the overall worker participation rate (WPR), which is another indicator of employment, remained stable at 51.4 per cent during the month, compared to 51.7 per cent in May last year.

The Periodic Labour Force Survey (PLFS) conducted by NSO, is the primary source of data on activity participation and employment and unemployment conditions of the population. The PLFS survey methodology has been modified from January, 2025 to provide monthly and quarterly estimates of labour force indicators for the country.

There was a decline in urban unemployment during the Jan-March quarter of the current year along with an increase in rural employment in both the secondary and tertiary sectors, according to a statement issued by the Ministry of Statistics earlier.

Overall Unemployment Rate (UR) in urban areas for persons of age 15 years and above exhibited a declining trend 6.6 per cent during the quarter January-March, 2026 compared to 6.7 per cent in the previous quarter.

Monthly results of PLFS are released in the form of Monthly Bulletins. It presents estimates of key labour market indicators which includes Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR) and Unemployment Rate (UR) at the all-India level following the Current Weekly Status(CWS) approach.

–IANS

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