India’s unemployment rate dips marginally to 5.5% in May

16 Jun 2026 Evaluate

Periodic Labour Force Survey (PLFS) has showed a marginal dip in India’s unemployment rate among persons aged 15 years and above to 5.5% in May compared to 5.6% a year ago. The unemployment rate was 5.2% in April this year. During May, a marginal rise in unemployment rate has been seen in rural areas to 5.1% from 4.6% in April, 2026, while the urban unemployment rate eased to 6.4% from 6.6% during the same period. Compared with May 2025, the urban unemployment rate declined from 6.9% to 6.4%, marking a reduction of 0.5 percentage points in May, 2026, while the rural unemployment rate maintained the same level of 5.1% over the same period. The PLFS is conducted by National Statistics Office, Ministry of Statistics and Programme Implementation.

In May, 2026, India’s Labour Force Participation Rate (LFPR) declined by 0.4 percentage points to 54.4% in May, 2026 as compared to last year. The LFPR was 55.0% in April, 2026. In rural and urban areas, LFPR registered a decline of 0.3 and 0.6 percentage points at 56.6% and 49.8%, respectively, during May 2026. The female participation stood at 32.8% in May, 2026, a marginal decline of 0.4 percentage points, from 33.2% in May, 2025. In rural areas, female LFPR was remained broadly unchanged at 36.7%, whereas LFPR for urban female recorded a decline of 0.5 percentage points at 24.8% over the year.

The Worker Population Ratio (WPR) 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, 2026. WPR in urban areas was estimated at 46.6% in May, 2026 against 46.8% in April, 2026. The survey said that the moderation in LFPR and WPR with an increase in unemployment rate indicates a softening of labour market conditions during the period. It added that 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. Further, the decline in labour market indicators may be linked to a seasonal moderation in economic activity during May 2026.

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