NEW DELHI: Unemployment rate in India rose to 5.5% in May compared to 5.2% in April, according to the government data released on Monday.
The country reported the highest unemployment rate in 11 months.
The Periodic Labour Force Survey (PLFS) data released by the National Statistics Office (NSO) showed that rural employment weakened in May, though urban job opportunities improved marginally at 6.4%, falling from 6.6% in April.
The urban unemployment rate stood at 5.1% in May against 4.6% in April.
It must be noted that the report comes against the backdrop of workers fleeing industrial towns across India amid the LPG crisis and state elections in West Bengal and Assam. Moreover, the IT sector, which is the largest employment generator in India, had estimated a drop of 2% in active tech jobs demand in May, month-on-month.
According to Xpheno report, in May, the IT sector, which is mainly concentrated in cities, saw a 5% rise in demand year-on-year.
The PLFS report also said that the unemployment rate among men rose to 5.2% in rural areas in May compared to 4.7% in April, whereas urban unemployment remained stagnant at 5.9%.
On the other hand, the women's unemployment rate in urban areas fell from 8.5% to 8.2% and in rural areas, a moderate rise to 5.6% from 5.4%.
The Labour Force Participation Rate (LFPR) for persons aged 15 years and above was reported as 54.4% in May 2026, compared to 55.0% in April, 2026. In rural and urban areas, LFPR was recorded at 56.6% and 49.8%, respectively.
The LFPR means people either employed or actively looking and available for work.
The Worker Population Ratio (WPR) for persons aged 15 years and above recorded a marginal decline of 0.3 percentage points in both rural and urban sectors between May 2025 and May 2026.
The overall WPR was estimated at 51.4% in May 2026, compared to 52.2% in April 2026 and 51.7% in May 2025.
In rural areas, WPR stood at 53.8% in May 2026, compared to 54.9% in April. WPR in urban areas was estimated at 46.6% in May against 46.8% in April.
The NSO said in the report, “The moderation in LFPR and WPR with an increase in UR indicates a softening of labour market conditions during the period. While labour force participation declined marginally, employment opportunities contracted at a faster pace, leading to a rise in the proportion of unemployed persons within the labour force. The decline in labour market indicators may be linked to a seasonal moderation in economic activity during May 2026.”
