1 in 7 young Indians can’t find work, shows first monthly labour survey
India's employment landscape appears to be under pressure, with urban joblessness notably higher than national averages and youth continuing to struggle to find employment. The National Statistical Office (NSO) has released its first monthly labour force survey, revealing that the national unemployment rate stood at 5.1% in April 2025, while urban areas recorded a joblessness rate of 6.5%. The rural unemployment rate was lower at 4.5%, underscoring a widening urban-rural gap in employment access.
The survey also highlighted an acute problem among the youth. The unemployment rate for individuals aged 15 to 29 years stood at a concerning 13.8%, with female youth unemployment at 14.4% and male youth at 13.6%. This data point is especially significant as this age group largely represents first-time entrants into the labour market — a key indicator of future employment health.
This latest report comes under a revamped methodology introduced by the NSO to provide monthly estimates of key employment indicators. The new rotational panel sampling design involves visiting the same household four times over four months to gather more frequent and consistent employment data. The NSO has advised users not to compare this data directly with the earlier Periodic Labour Force Survey (PLFS) data published until December 2024, due to methodological differences.
The April unemployment figure is slightly higher than the 4.9% recorded in 2024, but again, direct comparison is discouraged. The new system aims to better capture short-term changes and trends in India’s labour market.
The Labour Force Participation Rate (LFPR) — the proportion of people aged 15 years and above who are either working or actively seeking work — was reported at 42% in April. However, a significant gender divide persists: the LFPR for females was just 26.2%, compared to 57.8% for males. This underlines continuing challenges for women’s workforce inclusion. The LFPR was 41.2% in rural areas and 39.9% in urban centres, suggesting a slight edge in participation in the countryside despite fewer formal job opportunities.
The NSO’s survey uses the Current Weekly Status (CWS) method to determine employment and unemployment. Under this system, an individual is considered unemployed if they did not work for at least one hour during the reference week but were available or actively seeking work for at least an hour.
While unemployment among rural youth and women appears marginally lower, the urban figures are concerning. Cities, often seen as employment hubs, are showing signs of saturation or mismatch in skills and job opportunities. The higher urban jobless rate of 6.5% may reflect factors such as automation, shrinking demand in certain sectors, and slower-than-expected recovery in job creation post-pandemic.
Moreover, the persistent high rate of youth unemployment suggests that the economy is struggling to generate enough entry-level or skill-aligned opportunities for fresh graduates and school leavers. This is a critical issue for a country like India, where more than half the population is under 30.
As the country works toward building a resilient and inclusive labour market, policymakers and private sector stakeholders will need to prioritise youth employment, female participation, and skilling initiatives to match the evolving needs of industries and service sectors. The monthly release of this data is expected to provide a more real-time picture of employment trends and support evidence-based decision-making.