India's latest labour report reveals a worrying trend: the unemployment rate climbed to 5.6% in May, up from 5.1% in April - marking a notable rise in joblessness across the country. The climb is tied to a sharp drop in farm jobs following the harvest season, with agricultural employment falling to 43.5% in May from 45.9% the previous month .

Female unemployment edged higher at 5.8%, compared to 5.6% for men, reflecting a larger dip in rural women’s participation - from 28.8% to 27.8% . Youth across urban areas saw their jobless numbers jump to 17.9%, while rural youth unemployment increased to 13.7%, pointing to growing distress among the country’s younger workforce.

Despite strong economic growth - GDP rose 7.4% year-on-year in Q1 and is expected to hit 6.5% this fiscal year - the labour market remains fragile . Employment is gradually transitioning from agriculture into manufacturing and services, but manufacturing growth slowed to a three-month low in May amid soft demand and price pressures.

Policymakers face mounting pressure to create sustainable jobs—especially for women and youth - together with targeted support for rural workers facing post-harvest unemployment.