By Dr. Gyan Pathak
India’s labour market has undergone deterioration in June 2025. Unemployment rate in current weekly status (CWS) for the person above the age of 15 years was shown in the Periodic Labour Force Survey (PLFS) of the government of India at 5.6 per cent, Labour Force Participation Rate (LFPR) at 54.2 per cent, and Worker Population Ratio (WPR) at 51.2 per cent.
Unemployment rate in April was shown 5.1 per cent, which rose to 5.6 per cent in May, and remained stuck at that level in June. Nevertheless, the data is puzzling when we look at the data of unemployment in the rural and urban areas and the combined data.
For example, unemployment in rural areas was in June 4.9 per cent while in urban areas, it was 7.1 per cent. For rural and urban areas combined it shows unemployment rate at 5.6 per cent. How come this is puzzling. It should have been average 6 per cent after combining both. Such a situation needs appropriate explanation in the document itself, how such discrepancies crop up, and how these can be justified.
Since such combined data by the PLFS are puzzling also for LFPR and WPR, one must read the government data carefully. It would be better if we take separate data sets for consideration, not the combined ones.
The unemployment rate in CWS for persons of age 15 years and above in rural areas was 4.9 per cent in June, which was a deterioration from 4.5 per cent in April, though an improvement from 5.1 per cent in May. Nevertheless, unemployment is rising sharply in the urban areas, which was 6.5 per cent in April, 6.9 per cent in May, and 7.1 per cent in June.
Youth of age group of 15-29 are the worst sufferers on account of unemployment both in the rural and urban areas. Youth unemployment in rural areas was 12.3 in April, which rose to 13.7 in May, and 13.8 in June. In urban areas unemployment rate for youth was 17.2 per cent in April, 17.9 per cent in May and 18.8 per cent in June.
Unemployment among rural female in June was 4.4 per cent and rural male 5.1 per cent, while in urban areas female unemployment was 9.1 per cent and male employment was 6.4 per cent.
Unemployment rate among persons of age 15-29 in June was 14.7 per cent for males and 17.4 per cent for females.
The survey considered a person unemployed if one did not work even for 1 hour on any day during the reference week but sought or was available for work.
LFPR in CWS for persons of age 15 years and above in the country stood at 54.2% in June 2025. In rural areas it was 56.1% and in urban areas 50.4%.
LFPR in rural areas has been on the decline. In April it was 58 per cent, which came down to 56.9 per cent in May, and further slid to 56.1 per cent.
LFPR in urban areas in April was 50.7 per cent, which came down to 50.4 per cent in May and remained stuck at 50.4 per cent in June.
LFPR for females in urban areas was 25.2 per cent while for males it was 75 per cent. Female LRPR in rural areas was 35.2 per cent and for male it was 78.1 per cent.
LFPR in CWS among persons of age 15-29 was 61 per cent for males and 20.6 per cent for females in June.
WPR in CWS for persons of age 15 years and above in the country stood at 51.2% in June 2025. In rural areas it was53.3% while it was 46.8% in urban areas.
WPR among rural male of age 15 years and above was 74.1% during June,2025. For rural female of the same age group WPR during June, 2025 was found to be33.6%.
In urban areas WPR among female of age 15years and above during June, 2025 was 22.9%compared to 70.2%observed for male of the same age group.
WPR in CWS among persons of age 15-29 years during June, 2025 was 52 per cent for males and 17 per cent for females.
WPR in rural areas was 55.4 per cent in April, which declined to 54.1 per cent in May, and 53.3 per cent in June.
WPR in urban areas declined from 47.4 per cent in April, to 46.9 per cent in May and 46.8 per cent in June 2025.
For rural and urban areas combined it was 52.8 per cent in April, 51.7 per cent in May, and 51.2 per cent in June 2025. (IPA Service)
