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The News Drill > Blog > Articles > India’s Unemployment Rises to 5.6% in May 2025: Youth & State-Level Crisis Deepens
ArticlesIndian Economy & BudgetOpinions and AnalysispoliticsReportSociety

India’s Unemployment Rises to 5.6% in May 2025: Youth & State-Level Crisis Deepens

The News Drill
Last updated: June 17, 2025 6:45 PM
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Unemployment Rate in India

India’s unemployment rate climbed to 5.6% in May 2025, up from 5.1% in April, according to the latest Periodic Labour Force Survey (PLFS) data released by MoSPI.The Ministry attributed this uptick to seasonal factors, such as the post‑Rabi harvest period and an ongoing heatwave, which suppressed rural employment.

Contents
Key Demographic TrendsState & UT Disparities: Who’s Lagging, Who’s LeadingHighest unemployment rateLowest unemployment rateGovernment Job Vacancies: Central & State-Level OpportunitiesStates with Alarming JoblessnessRoadmap: How India Can Reduce UnemploymentConclusion

Key Demographic Trends

  • Gender: Female unemployment edged up to 5.8%, compared to 5.6% for males.
  • Youth (age 15–29):

Urban: 17.9% in May (up from 17.2% in April)

Rural: 13.7% in May (up from 12.3%).

  • Sectoral shift: Post-harvest, rural employment in agriculture fell from 45.9% in April to 43.5% in May. This drop correlated with decreased female labor force participation in rural areas—from 28.8% to 27.8%.

State & UT Disparities: Who’s Lagging, Who’s Leading

Historical CMIE data (as of May 2025) reveals stark regional differences:

Highest unemployment rate

  • Uttar Pradesh: 24.0%
  • Rajasthan: 23.8%
  • Jammu & Kashmir: 23.2%
  • Arunachal Pradesh: 18.3%
  • Assam: 10.4%
  • Odisha: 15.9%

Lowest unemployment rate

  • West Bengal: 3.3%
  • Gujarat: 3.9%
  • Maharashtra: 4.3%
  • Tamil Nadu: 4.1%
  • Chhattisgarh: 10.1% (CMIE; however official PLFS for 2022‑23 reports 2.4%).

These disparities underscore the need for region-specific policy responses.

Government Job Vacancies: Central & State-Level Opportunities

  • Central vacancies: As of July 2023, approximately 964,000 vacancies in central government departments remained unfilled.

Major ongoing recruitments include SSC GD Constable (53,690 posts) and SSC CGL (10,000+ Group B/C posts).

  • State-level hires:

Odisha’s Utkarsh Odisha scheme alone plans ~150,000 posts, with 28,346 appointments completed.

  • Portal aggregates: Online government job portals list approximately 45,000–50,000 live vacancies, with over 100 notifications currently live.

States with Alarming Joblessness

Five states account for India’s most acute unemployment challenges:

1. Uttar Pradesh (~24%)

2. Rajasthan (~23.8%)

3. Jammu & Kashmir (~23.2%)

4. Arunachal Pradesh (~18.3%)

5. Assam & Odisha (10–16%)

These figures, derived from CMIE and PLFS datasets, emphasize regions where joblessness is most entrenched.

Roadmap: How India Can Reduce Unemployment

1. Seasonal job cushions for agriculture

Engage rural workers in agro-processing, R&D, and farming-linked value chains post-harvest.

2. Scale up youth and vocational training

Reach underrepresented states via expanded digital and apprenticeship programs.

3. Industrially empower lagging states

Promote MSMEs, infrastructure-driven manufacturing, and services in high-unemployment regions.

4. Boost female labor participation

Introduce childcare support, flexible work models, and incentives.

5. Fill public-sector vacancies swiftly

Expedite SSC/UPSC/state recruitments; target job issuance in high-unemployment states.

6. Strengthen data & local planning

Use monthly PLFS data to guide district-level interventions and monitor progress.

Conclusion

India’s 5.6% national unemployment, particularly the high youth (13–18%) and female (5.8%) joblessness, coupled with stark regional imbalances, indicates seasonal, structural, and demographic challenges. The vast public-sector vacancy pool—nearly a million central posts plus tens of thousands at the state level—offers immediate relief.

By combining strategic recruitment, skill enhancement, regional industrialization, and inclusive policies, India can create a more resilient and equitable job ecosystem—transforming today’s challenges into tomorrow’s opportunities.


For feedback, insights, or story tips, reach out to us at contact@thenewsdrill

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