The unemployment rate in India fell to 7.7% in May due to a decline in the labour participation at 441.9 million, reports The Economic Times, citing data by private economic think tank Centre for Monitoring Indian Economy (CMIE). The unemployment rate in India among people aged 15 years and above fell to 7.7% in May 2023 from 8.5% in the previous month. The unemployment rate inched down as a consequence of a fall in the labour participation, which implies a fall in the number of people who entered the labour market in search of work.

CMIE's Natasha Somayya K said the labour participation rate (LPR) fell by 1.1% to 39.6% in May compared to April. "This drop in LPR in May was expected because April witnessed a large number of people entering the labour force, but only a small share was able to secure employment in the month. This was bound to discourage many from searching for work in the month of May. As a result, the labour force shrunk in size from 453.5 million to 441.9 million," she added.