The Periodic Labour Force Survey (PLFS) data for May and June 2025 show a steady unemployment rate of 5.6% among people aged 15 and above. The Ministry of Statistics and Programme Implementation released these figures on 15 July 2025. The report marks a slight decline in labour force participation and worker population ratios, influenced by seasonal and socio-economic factors.
Unemployment Rate Stability
The overall unemployment rate remained unchanged at 5.6% in June 2025 compared to May. Male unemployment held steady, while female unemployment fell marginally by 0.1 percentage points. Rural areas saw a 0.2 percentage point decrease in unemployment, but urban areas experienced a 0.2 percentage point rise.
Labour Force Participation Rate Decline
The labour force participation rate (LFPR) for persons aged 15 and above dropped from 54.8% in May to 54.2% in June 2025. Rural LFPR was higher at 56.1% than urban LFPR at 50.4%. Male participation slightly declined in both rural (78.3% to 78.1%) and urban areas (75.1% to 75%). Female participation decreased more notably, from 36.9% in May to 35.2% in rural areas and from 25.3% to 25% in urban areas.
Female Labour Force Participation Trends
Female LFPR showed a consistent downward trend since April 2025. In rural areas, it fell from 38.2% in April to 35.2% in June. Urban female participation also declined slightly. The combined LFPR for females across rural and urban zones was 24.5% in June, down from 25.5% in May. This decline points to persistent challenges in women’s workforce engagement.
Worker Population Ratio Changes
The worker population ratio (WPR), indicating the proportion of employed persons, decreased from 39% in May to 38.7% in June 2025. This decline was consistent across rural and urban areas. The government attributed this to seasonal agricultural cycles, extreme summer heat limiting outdoor work, and a shift of unpaid helpers, especially women from wealthier rural households, towards domestic duties.
Sectoral and Seasonal Influences
Rural female workers in agriculture reduced from 70.2% in May to 69.8% in June. This drop suggests less agricultural demand, possibly linked to easing rural inflation. Seasonal factors like summer heat and agricultural patterns influenced workforce dynamics. The data reflects the complex interplay of economic, climatic, and social factors on employment.
Survey Scope and Methodology
The PLFS monthly data release started in April 2025 for timely labour market insights. The June survey covered 89,493 households (49,335 rural and 40,158 urban) and 380,538 individuals (217,251 rural and 163,287 urban). Such extensive sampling ensures a representative picture of India’s labour trends.
Questions for UPSC:
- Discuss in the light of recent data the factors influencing labour force participation rates among women in India.
- Critically examine the impact of seasonal agricultural cycles and climate on employment patterns in rural India.
- Explain the significance of the Worker Population Ratio as an economic indicator and discuss its limitations with suitable examples.
- With suitable examples, discuss the challenges and policy measures related to urban unemployment in developing economies like India.
