India's unemployment rate stays unchanged at 5.5% in June.
Female labour force participation dips to a one-year low of 32.7%.
Urban unemployment rises to 6.6% while rural unemployment eases to 5.0%.
India's Unemployment Rate Unchanged At 5.5% In June, Female Participation Slips
Female labour force participation declined marginally to 32.7% in June from 32.8% in May, marking its lowest level since June 2025, when it stood at 32.0%. The decline extended the moderation seen since the beginning of the year, after participation had peaked at 35.3% in January 2026
Unemployment Rate Remains Unchanged
Summary
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India's unemployment rate remained unchanged at 5.5% in June, even as female labour force participation fell to its lowest level in a year, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO) on July 15.
The labour force participation rate (LFPR) for people aged 15 years and above remained unchanged at 54.4% in June, the same as in May and marginally higher than 54.2% recorded a year earlier. The worker population ratio (WPR) also remained steady at 51.4%, showing little change in the overall employment scenario during the month.
Female Participation Slips
Female labour force participation declined marginally to 32.7% in June from 32.8% in May, marking its lowest level since June 2025, when it stood at 32.0%. The decline extended the moderation seen since the beginning of the year, after participation had peaked at 35.3% in January 2026.
The fall was driven by rural India, where female LFPR slipped to 36.6% from 36.7% in May. Urban female participation remained unchanged at 24.8%. Despite the sequential decline, female labour force participation was 0.7 percentage points higher than a year ago, pointing to a longer-term improvement even as monthly numbers softened.
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Urban-Rural Divide
Urban labour force participation improved to 50.1% in June from 49.8% in May, while the urban worker population ratio rose to 46.8% from 46.6%, indicating stronger employment generation in cities during the month.
Rural unemployment eased to 5.0% from 5.1% in May, after rising continuously since February. Urban unemployment increased to 6.6% from 6.4%, though it remained below the 7.1% recorded in June last year, suggesting some improvement on an annual basis despite the monthly rise.
Male employment indicators strengthened during the month. The male worker population ratio rose to 72.9% from 72.5% in May, while the male unemployment rate eased to 5.3% from 5.4%, reflecting steadier job conditions for men compared with the previous month.