Unemployment Rate at 5.6% in May 2025; What Support Do Unemployed Have?

India’s unemployment rate rose to 5.6% in May 2025, up from 5.1% in April, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation on Monday.

While the country lacks a universal unemployment allowance system like those in some Western nations, it does provide limited but vital support through select national and state-level schemes. These programs aim to offer temporary relief to jobseekers during periods of financial uncertainty.

 Let’s take a closer look at some of the key initiatives designed to assist individuals facing unemployment.

ESIC’s Atal BeemitVyakti Kalyan Yojana (ABVKY)

The Atal Beemit Vyakti Kalyan Yojana, managed by the Employees' State Insurance Corporation (ESIC) under the Ministry of Labour, offers a form of unemployment allowance to insured persons.

Key Features:

• Eligibility: Applicable to workers covered under ESI (i.e., those earning wages up to ₹21,000 per month and working in an ESI-registered company).
• Benefit: Provides 50% of the average daily wages for up to 90 days during unemployment. (once in a lifetime)
• Direct Benefit Transfer: This benefit is directly transferred to the insured person's bank account after submitting the required documents.

Conditions:

• The worker must have been in insurable employment for at least 2 years and should have contributed for a minimum of 78 days in each of the four preceding contribution periods.
• The unemployment contingency should not have resulted from any punishment for misconduct, superannuation, or voluntary retirement.

EPFO’s Advance Withdrawal for Unemployment

The EPFO allows members to withdraw a portion of their EPF corpus in case of unemployment.

Rules for Advance Withdrawal:

• A member unemployed for more than one month can withdraw 75% of their EPF balance.
• If the person continues to be unemployed for more than 2 months, the remaining 25% can also be withdrawn.
• No employer certification is required—this can be done online via the UAN (Universal Account Number) portal.

This is not a direct unemployment benefit but serves as an emergency fund to support short-term needs.

Other Unemployment Support Schemes

Several states like Tamil Nadu, Haryana, Uttar Pradesh, Chhattisgarh, and Himachal Pradesh offer their own unemployment allowance schemes. Eligibility and benefits vary by state, and more details are available on the respective government websites.

1. Tamil Nadu: Unemployment Assistance Scheme

The Unemployment Assistance Scheme in Tamil Nadu is intended for youth who have registered with the District Employment and Career Guidance Centre and have remained on the live register for 5 years or more while seeking employment.

The scheme provides monthly assistance ranging from ₹200 to ₹1,000, depending on the educational qualification.

2. Haryana: Unemployment Allowance for the Educated Unemployed Youth Scheme

Haryana offers the Unemployment Allowance for the Educated Unemployed Youth Scheme, which gives a monthly allowance ranging from ₹900 to ₹1,500 to educated unemployed youth who are registered with the Employment Exchanges in the state.

The allowance amount varies based on the individual's educational qualification.

3. Uttar Pradesh: Berojgari Bhatta Yojna

The Berojgari Bhatta Yojna in Uttar Pradesh supports educated individuals who are unable to apply for jobs due to financial hardship.

Under this scheme, the government provides financial assistance of ₹1,000 to ₹1,500 per month until the youth secure a desired job.

4. Chhattisgarh: Unemployment Allowance Scheme

The Chhattisgarh Berozgari Bhatta Yojana aims to support unemployed youth of the state until they find employment. The applicant must be native of Chhattisgarh.

Eligible applicants receive financial assistance of ₹2,500 per month under this scheme.

5. Himachal Pradesh: Unemployment Allowance Scheme

Himachal Pradesh provides an Unemployment Allowance Scheme under which each educated unemployed applicant is eligible for an allowance of ₹1,000 per month. This benefit is payable for a maximum period of 2 years.

Read More: India’s Unemployment Rate Climbs to 5.6% in May 2025.

Conclusion

With unemployment rising to 5.6% in May 2025, it’s essential for jobseekers to be aware of available financial support systems. While India does not offer universal unemployment benefits, schemes by ESIC, EPFO, and various state governments provide crucial temporary relief. Understanding eligibility and timely application can help individuals navigate periods of job loss more securely.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.