Unemployment rate holds steady at 5.6% in June but rises among youth

Unemployment rate for June

India’s unemployment rate remained unchanged at 5.6 percent in June, data released by the government showed. While the overall figure showed stability, the burden of joblessness continued to be disproportionately higher among the young.

The female unemployment rate declined marginally to 5.6 percent from 5.7 percent in May. Male unemployment, however, remained steady at 5.6 percent.

"The decrease in the unemployment rate for rural areas for both male and female can be attributed to an increase in the share of own-account workers in June 2025 compared to May 2025, along with a reduction in the number of unemployed persons," said the press release.

The highest stress was seen among the youth aged 15–29, where the unemployment rate rose to 15.3 percent in June from 15 percent in May.

For men, unemployment rate rose to 14.7 percent compared with 14.5 percent in the previous month.

The unemployment rate for young women in this group jumped to 17.4 percent, up from 16.3 percent in the previous month — highlighting worsening labour market outcomes for female youth.

In urban areas, unemployment rate rose faster for youth in urban areas to 18.8 percent from 17.9 percent compared with a rise to 13.8 percent from 13.7 percent from rural areas.

In addition, female labour force participation among youth dropped to 20.6 percent from 22.4 percent, indicating that fewer young women were either working or actively seeking work.

"Data shows that several unpaid helpers in June 2025 reported themselves as engaged in domestic duties, contributing to a decline in the labour force, especially among higher-income rural households," the press release noted.

Overall female participation in the workforce also slipped, falling to 24.5 percent from 25.5 percent in May, reinforcing concerns about gender disparities in employment access.

Labour force participation dipped to 41 percent from 41.4 percent in the previous month and 42 percent at the start of the fiscal.