India’s overall unemployment rate remained unchanged at 5.5 per cent in May from a year ago, while urban unemployment declined to 6.4 per cent, according to the latest PLFS data released by the NSO on Monday.
The survey showed that the urban unemployment rate (UR) for persons aged 15 years and above fell to 6.4 per cent in May 2026 from 6.6 per cent in April 2026. Compared with May 2025, when the urban unemployment rate stood at 6.9 per cent, the latest figure marks a decline of 0.5 percentage points and represents the lowest urban jobless rate recorded since May last year.
The overall unemployment rate at the national level was estimated at 5.5 per cent in May 2026. While rural unemployment increased marginally to 5.1 per cent from 4.6 per cent in April, it remained unchanged compared to the corresponding month last year.
The Labour Force Participation Rate (LFPR) for persons aged 15 years and above stood at 54.4 per cent in May 2026, compared with 55 per cent in April 2026 and 54.8 per cent in May 2025. The LFPR was recorded at 56.6 per cent in rural areas and 49.8 per cent in urban areas.
Female labour force participation remained largely stable in urban areas. The urban female LFPR stood at 24.8 per cent in May 2026, nearly unchanged from the previous month. Overall female LFPR was recorded at 32.8 per cent, compared with 33.2 per cent in May 2025.
The Worker Population Ratio (WPR), which measures the proportion of employed persons in the population, was estimated at 51.4 per cent in May 2026, down from 52.2 per cent in April 2026. In urban areas, the WPR remained broadly stable at 46.6 per cent, compared to 46.8 per cent in the previous month.
According to the survey, the moderation in labour force participation and worker population ratios, along with a rise in rural unemployment, points to some softening in labour market conditions during May. The report noted that seasonal moderation in economic activity may have contributed to the decline in labour market indicators.
The monthly estimates are based on information collected from 3,73,887 individuals across the country, including 2,13,294 persons in rural areas and 1,60,593 persons in urban areas.
The PLFS, conducted by the National Statistical Office under the Ministry of Statistics and Programme Implementation, serves as the primary source of data on employment and unemployment conditions in the country. Since January 2025, the survey methodology has been revised to provide monthly and quarterly labour market estimates at the national level.
