MUMBAI: India’s unemployment rate remained unchanged at 5.5% in June for the third consecutive month, even as urban labour force participation improved, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO).The survey points to a resilient labour market supported by infrastructure, construction and services, but highlights a persistent challenge—women, particularly in urban areas, continue to have low workforce participation.The Labour Force Participation Rate (LFPR), which measures the proportion of people working or seeking work, stood at 54.4% in June, unchanged from May and marginally higher than 54.2% a year ago. Urban LFPR rose to 50.1% from 49.8% in May, while rural participation remained steady at 56.6%.The Worker Population Ratio (WPR), which measures the proportion of people employed, remained stable at 51.4%, up 0.2 percentage points from a year earlier. Male WPR increased marginally to 72.9% from 72.5% in May.The unemployment rate held steady at 5.5%, indicating that the rise in urban labour force participation was largely matched by job creation. Rural male unemployment also eased in June after rising in previous months.However, female labour force participation remained largely stagnant at 32.7%, compared with 32.8% in May. Urban women’s participation remained low at 24.8%, underscoring a persistent structural gap despite modest improvement from a year earlier.The survey suggests that while the economy is generating enough jobs to keep unemployment stable, women continue to be underrepresented in the workforce. Analysts have said higher female labour force participation could significantly boost economic growth and household incomes.The NSO noted that southern and western states, including Maharashtra, Karnataka, Tamil Nadu, Telangana and Gujarat, continue to lead employment generation, driven by manufacturing and services.Major urban centres such as Mumbai, Bengaluru, Hyderabad, Pune, Chennai and Delhi-NCR remain key employment hubs.The monthly PLFS, introduced in January 2025, provides more timely labour market data, enabling policymakers and businesses to monitor employment trends more closely.The June survey indicates that while India’s labour market remains resilient amid global economic uncertainty, increasing urban job creation and women’s workforce participation remain key policy priorities.
