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India Releases Monthly Unemployment Data: Is it Alarming?

India Releases Monthly Unemployment Data: Is it Alarming?

Monthly Unemployment Data: The Centre has released the unemployment figures in the country on a monthly basis for the first time. According to the latest ‘Periodic Labour Force Survey’, the unemployment rate in April was recorded at 5.1 percent. While unemployment is higher in cities, the unemployment rate among youth is at 13.8 percent. The labour force participation rate was recorded at 55.6 percent, the Union Statistics Ministry said. 3,80,838 people from 89,434 households in 7,500 areas participated in this survey.


 

Till now, the Centre has been releasing unemployment figures on a quarterly and annual basis in the country. However, for the first time, monthly unemployment rate figures were revealed on Thursday. According to the ‘Periodic Labour Force Survey (PLFS)’ released by the Union Ministry of Statistics and Scheme Implementation.


April 2025: Monthly Unemployment Data 

The unemployment rate in April this year was recorded at 5.1 percent. The main purpose of this report is to quickly inform how many people above 15 years of age who are eligible for jobs in the country are unemployed. According to the latest figures collected under the Current Weekly Status (CWS) system.. The unemployment rate among people above 15 years of age in the country was recorded at ‘5.1%’ in April 2025.

 

Unemployment is higher in urban areas compared to rural areas. While it is 4.5% in rural areas, it is recorded at 6.5% in urban centers. PLFS has been revived since January this year. Now for the first time, employment statistics are being released in the form of a monthly bulletin. These figures include different details for rural and urban areas. The unemployment rate for males above 15 years of age is 5.2%, while for females it is 5.0%. In rural areas, the rate is 4.9% for males and 3.9% for females, while in urban areas, the rate is 8.7% for females and 5.8% for males. Meanwhile, incidents of youth roaming around companies in the country in search of jobs are frequently reported on social media. A video of an incident where hundreds of people appeared for 10 jobs in a company went viral.

 

Youth unemployment rate (15–29 years)

Statistics show that youth unemployment is 13.8% nationwide. Separately, it is 23.7% in urban areas. It is 10.2% in rural areas. Rural women are 14.4% and men are 13.6%.

The labour force participation rate (LFPR) among the population aged 15 years and above was recorded at 55.6 per cent in April. It was 58 per cent in rural areas and 50.7 per cent in urban areas. Out of these, 79.0 per cent were rural males and 75.3 per cent were urban males.

 

In the first phase, the survey was conducted in 89,434 households in a sample of 7,500 areas. Out of these, 49,323 were rural and 40,111 were urban, totaling 3,80,838 people (2,17,483 rural and 1,63,355 urban) were surveyed.

Why this happened? Possible reasons:

  • High informal employment absorbs youth
    India has a large informal sector that absorbs a significant portion of the young workforce. Many youth are engaged in low-paying, unstable, or part-time jobs that technically count as “employed,” keeping the unemployment rate lower than it might appear based on job quality concerns.

  • Demographic dividend in transition
    India’s young population is vast, but not all of them actively seek employment at the same time. Many youth are still in education or training, especially in rural areas, which means they are not part of the “labour force” and thus not included in unemployment calculations.

  • Self-employment and gig work
    A rising number of young Indians are working in self-employment or gig economy jobs (like delivery, ride-hailing, freelancing, etc.). These jobs count as employment, even if they lack stability or social security benefits, again lowering the formal unemployment rate.

  • Job market recovery post-COVID
    April’s data may reflect a rebound in employment due to post-pandemic economic recovery, seasonal demand, and increased hiring in services and construction. Sectors that typically hire youth—like retail, delivery services, and hospitality—have bounced back, influencing the lower unemployment figure.

  • Underemployment and skills gap
    Although unemployment is at 5.1%, a large portion of youth may still be underemployed or working in roles that do not match their qualifications. This “disguised unemployment” doesn’t appear in headline figures but reflects deeper employment quality issues.

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