First Monthly Labour Survey: India’s Unemployment Rate at 5.1% in April

India has taken a significant step towards real-time employment tracking with the release of its first monthly labour force survey by the National Statistical Office (NSO). According to the findings, the country’s unemployment rate for April 2025 stood at 5.1%.

Urban Unemployment Higher Than Rural

A key insight from the survey is the difference in joblessness between urban and rural regions. Urban areas registered a higher unemployment rate of 6.5%, while rural areas recorded a lower rate of 4.5%. This variation reflects differing economic activities and seasonal employment trends.

Youth Unemployment a Major Concern

The unemployment rate among youth aged 15 to 29 years was 13.8%. For females in this age group, the rate was 14.4%, while for males it stood at 13.6%. Since many individuals in this category are entering the job market for the first time, this number is a vital indicator of employment opportunities for new job seekers.

Labour Force Participation Rate Highlights Gender Gap

The labour force participation rate (LFPR), which represents the proportion of the population either working or seeking work, was 42% in April. A closer look reveals a stark gender gap, 57.8% of males were part of the labour force compared to only 26.2% of females. Regionally, the LFPR was 41.2% in rural areas and 39.9% in urban areas.

Methodology Based on Current Weekly Status (CWS)

The survey used the current weekly status method to determine employment figures. Under this method, a person is considered unemployed if they did not work even one hour during the past seven days but were available or looking for work during that time. This method provides a more current picture of employment status than annual surveys.

Revised Sampling Methodology

The NSO clarified that comparisons with older PLFS reports are not appropriate due to a change in methodology from January 2025. The new approach adopts a rotational panel sampling system, where each selected household is visited four times across four months. This system allows for more accurate and timely employment estimates.

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Unemployment Rate by Gender

According to the report, the unemployment rate for females stood at 5% in April, while for males it was slightly higher at 5.2%. These figures provide a broader view of employment availability and gender-specific challenges in accessing job opportunities.

Conclusion

The first monthly labour survey by the NSO provides a detailed and updated snapshot of India’s employment landscape. With the national unemployment rate at 5.1%, the survey reflects ongoing challenges in the labour market, especially for youth and women. The updated methodology aims to enhance data accuracy and help policymakers respond more effectively to labour trends.

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