• India's unemployment rate for youth aged 15 to 29 stands at 13.8%
• The overall unemployment rate in April 2025 was 5.1%
• The National Statistical new monthly survey methodology aims to provide more labor market trends

The unemployment rate for people aged 15 to 29 was a concerning 13.8%, with the rate of youth unemployment among young women at 14.4% and young men at 13.6%.

India's labour market seems to be under strain, with urban unemployment significantly above national levels and youth still failing to secure jobs. The National Statistical Office (NSO) has published its inaugural monthly survey of labour force that shows the overall unemployment rate in April 2025 was 5.1%, while urban unemployment was at a joblessness rate of 6.5%. The rural unemployment rate was a shade lower at 4.5%, highlighting increasing urban-rural disparity in access to employment.

The survey also picked up on a pressing issue among young people. The rate of unemployment among those aged between 15 and 29 years was at a high 13.8%, of whom the youth females were 14.4% and the youth males were 13.6%. This figure takes on particular importance considering that this age group is mainly composed of new entrants to the labour market one of the most important indicators of future jobs health.

This new report falls under a new methodology brought in by the NSO to present monthly estimates of the important employment indicators. The new rotational panel sampling design includes visiting the same household four times within four months to obtain more regular and consistent employment information. The NSO has recommended that users do not compare this information directly with the previous Periodic Labour Force Survey (PLFS) information released up to December 2024, as there were methodological variations.

The April unemployment rate is marginally higher than the 4.9% of 2024, but again, strict comparability is avoided. The new system is designed to capture more accurately short-term shifts and trends in India's labour market.

Labour Force Participation Rate (LFPR) the percentage of individuals aged 15 years and older who are employed or seeking employment was at 42% in April. Yet the large gender gap remains: the LFPR for women was only 26.2%, versus 57.8% for men. This serves to highlight ongoing difficulties in incorporating women into the workforce. The LFPR in rural districts was 41.2% and 39.9% in urban areas, indicating a modest participation advantage in rural areas despite the lower level of formal employment opportunities.

The NSO survey employs the Current Weekly Status (CWS) approach to ascertaining employment and unemployment. In this system, a person is said to be unemployed if he or she did not work for a minimum of one hour in the reference week but was available or seeking work for a minimum of one hour.