Date: March 31, 2025
India’s unemployment rate dropped to 6.8% in March 2025, marking its lowest since 2019, according to CMIE data. Urban unemployment stood at 7.2%, while rural unemployment declined to 6.6% due to increased agricultural activities and early rabi harvests. Analysts said this was driven by a pickup in services, manufacturing, and construction hiring, along with government infrastructure push before the elections. Labour force participation also improved slightly to 40.5%. However, experts warned that while unemployment rates have fallen, quality job creation remains a concern, with a significant proportion still in low-paid informal sector roles. The government is expected to announce new skilling schemes and MSME credit support in the upcoming budget to boost formal employment growth in the second half of 2025.