India’s unemployment rate climbed to 5.6% in May 2025, marking a marginal increase from the previous month’s 5.4%, according to the latest data released by the Centre for Monitoring Indian Economy (CMIE). This spike highlights persistent challenges in the labour market despite signs of broader economic recovery.
The report noted that female unemployment stood slightly higher at 5.9% compared to 5.5% for men. Experts attribute this gap to structural inequalities and limited access to stable job opportunities for women, especially in rural and semi-urban regions.
Rural India saw a minor dip in employment generation despite the start of the agricultural season, while urban areas experienced stagnant hiring across sectors like manufacturing and retail. The informal sector, which employs a majority of the Indian workforce, continues to be volatile and under-documented, adding complexity to accurate assessments.
Economists suggest that while the numbers are not alarming, they warrant targeted policy responses—particularly focused on skill development, women’s participation in the workforce, and supporting MSMEs, which are crucial for job creation.
As India eyes long-term growth, addressing unemployment—especially among youth and women—remains essential to ensure inclusive development and economic stability.
