Unemployment Rate in India

As of April 2025, India's unemployment rate stands at 5.1% for individuals aged 15 years and above, according to the Ministry of Statistics and Programme Implementation (MoSPI). This figure emerges from India's first-ever monthly Periodic Labour Force Survey (PLFS), marking a significant shift from the previous practice of releasing employment data quarterly or annually.

New Monthly Labour Data

• The introduction of monthly labour data aims to provide more timely and granular insights into the employment landscape across the country.
• This change is expected to enhance policy responsiveness and economic planning by offering up-to-date information on employment trends.
• Key Labour Market Indicators
  • Labour Force Participation Rate (LFPR): In April 2025, the LFPR for individuals aged 15 years and above was 55.6%. This rate was higher in rural areas (58.0%) compared to urban areas (50.7%).
  • Worker Population Ratio (WPR): The WPR, indicating the proportion of the working-age population that is employed, stood at 52.8% nationally. Rural areas had a higher WPR (55.4%) than urban areas (47.4%).
• Gender Disparities in Employment: The data reveals notable gender disparities in employment indicators:
  • Unemployment Rate: Among males, the unemployment rate was slightly higher at 5.2%, compared to 5.0% for females.
  • Labour Force Participation Rate: Male LFPR was significantly higher at 77.7%, while female LFPR was 34.2%.
  • Worker Population Ratio: The WPR for males was 73.7%, whereas for females, it was 32.5%.
• Youth Unemployment: Youth unemployment (ages 15-29) remains a concern, with an overall rate of 13.8%. Urban youth face higher unemployment rates (17.2%) compared to their rural counterparts (12.3%).
• It's important to note that the Centre for Monitoring Indian Economy (CMIE), an independent think tank, reported a higher unemployment rate of 7.73% for April 2025. The discrepancy arises due to differences in survey methodologies and data collection approaches between CMIE and MoSPI.
•  Implications for Policy and Planning:
  • The shift to monthly labour data reporting is a significant development for India's economic planning. It allows for more responsive and targeted policy interventions to address employment challenges. The data highlights the need for focused strategies to improve urban employment opportunities, address gender disparities, and tackle youth unemployment.
• By providing more frequent and detailed labour market information, policymakers can better understand the dynamics of employment across different regions and demographics, leading to more effective and inclusive economic policies.