The unemployment rate among persons aged 15-29 years rose to a nine-month high of 15.2% in March, up from 14.8% in February, according to the Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday. This was the highest youth unemployment rate since June 2025, when it stood at 15.3%.
The overall unemployment rate for persons aged 15 years and above increased to a five-month high of 5.1% in March from 4.9% in February. The rise was mainly driven by higher joblessness in urban areas, the MoSPI said.
In the 15-29 age group, the joblessness among male rose to 14.3% in March from 13.7% in February while for female the unemployment rate edged to 17.7% from 17.6 in February. The rural unemployment among youth was 13.6% in March. In urban areas, it rose to 18.4% from 18.3% in February.
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Urban Centers Bear the Brunt
As per the Current Weekly Status (CWS) approach, the unemployment rate for persons aged 15 years and above in urban areas rose to 6.8% from 6.6% in February, while it edged up marginally in rural areas to 4.3% from 4.2%. Among males aged 15 years and above, the rate climbed to a five-month high of 5% in March from 4.8% in February. For females in the same age group, it stood at 5.3%, above the overall rate of 5.1%.
The March figure is the highest since October 2025, when the unemployment rate touched 5.2%. It had previously recorded 5.6% in both May and June 2025.
Rahul Singh, Associate Professor at O.P. Jindal Global University, said the 5.1% unemployment rate appears to reflect short-term labour market adjustments, including seasonal variations and evolving sectoral demand. “External uncertainties, including developments in West Asia, may have had some indirect impact on sentiment and activity,” he added. Singh expects ongoing improvements in investment, infrastructure, and workforce participation to support steady employment generation in the coming months.
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External Pressures
The Labour Force Participation Rate (LFPR), the percentage of the population in the labour force, declined to 55.4% in March from 55.9% in February. Rural LFPR fell to 58% from 58.7%, while urban LFPR remained almost stable at 50.3% (down slightly from 50.4%). Female LFPR dropped to 34.4% from 35.3%, while male LFPR edged down to 77.4% from 77.5%.
The Worker Population Ratio (WPR), which measures the share of employed people in the population, declined to 52.6% in March from 53.2% in February. Rural WPR fell to 55.5% from 56.3%, with male WPR at 75% (down from 75.4%) and female WPR at 37.3% (down from 38.4%). Urban WPR slipped to 46.8% from 47%.
According to MoSPI, the CWS approach determines a person’s activity status based on the seven days preceding the survey. Under this method, an individual is classified as unemployed in a week if they did not work even for one hour on any day during the reference week but were available for work for at least one hour on any day in that period.
The monthly estimates at the all-India level are based on a survey of approximately 3.75 lakh persons, including 2.13 lakh in rural areas and 1.61 lakh in urban areas.
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