India Unemployment rate rises to 5.6% in May

The unemployment rate for men was 5.6 percent in May, but slightly higher for women at 5.8 percent. 

New Delhi: The country's unemployment rate rose to 5.6% in May, a significant increase from 5.1% in April. The data was released by the Ministry of Statistics and Programme and Development on Monday. This means that employment opportunities in the country have decreased.

The main reason has been the sharp decline in agricultural employment in rural areas after the harvest of the Rabi crop - the employment of agricultural labourers has fallen from 45.9% to 43.5%.

Such seasonal changes in the local economy have had a negative impact on rural employment, especially among women. Rural female labour force participation has fallen from 28.8% to 27.8%. The unemployment rate is more worrying among the youth. In urban areas, it rose to 17.9 percent (from 17.2 percent in April) and in rural areas to 13.7 percent (from 12.3 percent in April).

The unemployment rate for men was 5.6 percent in May, but slightly higher for women at 5.8 percent. The overall employment situation in the country has also been affected by the labour participation rate, which fell to 54.8 percent in May from 55.6 percent in April. The statistics ministry said that employment in rural areas, albeit slowly, is increasing in non-agricultural sectors such as construction, manufacturing and services. However, manufacturing grew at its slowest pace in three months in May, driven by weak demand, inflation and international geopolitical instability.

Some economists say that rural employment has naturally declined due to the end of the Rabi crop season, which is only seasonal - but if such changes become permanent in the long run, it could have a negative impact on the economy.