New Delhi: On 16 June 2025, the Ministry of Statistics released its Periodic Labour Force Survey (PLFS) – a Monthly Bulletin for the Month of May 2025. The key finding of the report shows that there is an increase in the unemployment rate in May in comparison with April 2025.
Furthermore, the labour force participation rate decreased during the month, which suggests that there may be some tightness in the labour market. This could be attributed to various factors such as heatwave conditions in certain regions of the country, but let’s dwelve deep into the key findings of the report.
Key findings of the report
The Labour Force Participation Rate (LFPR) in Current Weekly Status (CWS) among individuals aged 15 years and above was 54.8 percent in May 2025, slightly lower than the 55.6 percent recorded in April of the same year.
In rural areas, the LFPR was 56.9 percent, while in urban areas it was 50.4 percent for individuals in the same age group.
For males aged 15 years and above, the LFPR in CWS was 78.3 percent in rural areas and 75.1 percent in urban areas in May 2025, showing a slight decrease from the April 2025 figures of 79.0 percent and 75.3 percent respectively.
Among females in the same age group, the LFPR in rural areas was 36.9 percent in May 2025.
The Worker Population Ratio (WPR) in CWS for individuals aged 15 years and above was 54.1 percent in rural areas and 46.9 percent in urban areas in May 2025, with the overall country-level WPR at 51.7 percent, down from 52.8 percent in April 2025.
The WPR for females in the same age group was 35.2 percent in rural areas and 23.0 percent in urban areas in May 2025, with the overall female WPR at 31.3 percent.
The Unemployment Rate (UR) in CWS among individuals aged 15 years and above increased to 5.6 percent in May 2025 from 5.1 percent in April 2025.
The female UR was slightly higher at 5.8 percent compared to the male UR of 5.6 percent at the country level in May 2025.
Brief on the results of PLFS monthly bulletin for May 2025
The results of the PLFS Monthly Bulletin for May 2025 showed changes in various ratios, which are expected due to increased frequency and seasonal variations.
These changes do not necessarily indicate long-term trends but are influenced by a combination of seasonal, academic, and labour market-related factors.
In rural areas, there has been a shift in employment away from the primary sector (agriculture), with the percentage of workers in this sector decreasing from 45.9 percent in April to 43.5 percent in May 2025.
This shift is towards the secondary and services sectors. Additionally, there has been a decline in the female LFPR, particularly in rural areas, by more than 1 percentage point.
This is attributed to fewer women working as casual laborers and unpaid helpers.
The reduction in agricultural activities following the end of the Rabi harvest season has led to a decrease in the number of male and female workers in rural areas.
In urban areas, changes have been more marginal, with slight declines in own account workers and casual labourers affecting the workforce numbers.
The decline in LFPR and WPR, as well as the rise in UR, can be largely attributed to seasonal agricultural patterns.
The higher summer temperatures experienced in May in some parts of the country limit physical outdoor work, leading to a shift of some unpaid helpers to domestic chores, especially in higher-income rural households (top 3 deciles).
Overall, the changes observed in the PLFS ratios for May 2025 are influenced by seasonal factors and do not necessarily indicate long-term trends.
Employment and unemployment status definition
The report discusses the difference between the traditional definition of “employment” and “unemployment” based on Current Weekly Status (CWS) and the more accurate “usual status”.
According to CWS, anyone who worked for at least one hour in the past week is considered employed, while those who looked for work for at least one hour are considered unemployed.
On the other hand, ‘usual status’ defines employment based on the majority of time worked in the past year, with the main job being called ‘principal’ work and any additional jobs being ‘subsidiary’ work.
