India’s unemployment rate rose to 5% in January 2026, up from 4.8% in December, according to the latest data released by the government on Monday, February 16, indicating a marginal month-on-month uptick in joblessness.
The overall labour force participation rate (LFPR) for persons aged 15 years and above stood at 55.9% in January 2026, compared with 56.1% in December 2025.
The data comes from the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). The periodic labour force survey (PLFS), conducted by the NSO, is the primary source of data on activity participation as well as employment and unemployment conditions in the country.
Also read: Govt says 2.22 crore people provided jobs at 18,000 job fairs across country in past year
Female labour force participation steady
Female LFPR in January 2026 was reported at 35.1%. In rural areas, female LFPR stood at 39.7%, while in urban areas it was 25.5% during the month. Overall, female labour force participation maintained its level, with only marginal variations across rural and urban regions.
Worker population ratio shows rural moderation
The overall worker population ratio (WPR) for persons aged 15 years and above exhibited broad stability in January. However, after a steady rise in rural WPR from 53.3% in June 2025 to 56.7% in December 2025, it moderated slightly to 56.2% in January 2026.
Also read: Budget 2026: FM proposes high-powered panel to boost jobs via services sector
In rural areas, male WPR stood at 75.7% and female WPR at 38.0% in January, compared to 76% and 38.6%, respectively, in December. Urban WPR remained largely unchanged across genders, recorded at 70.5% for males, 23% for females, and 46.8% at the overall (person) level in January.
Rural factors drive January dip
The decline in LFPR and WPR, along with the rise in unemployment rate (UR), was primarily rural-driven. Seasonal factors, post-harvest slack, and discouragement effects played a key role. Activities such as construction, agriculture allied work, transport, and small trade typically witness a slowdown during the winter months. Urban labour market indicators, in contrast, remained stable.
At the all-India level, the monthly estimates were based on information collected from 3,73,158 persons surveyed. Of these, 2,13,226 individuals were surveyed in rural areas and 1,60,932 in urban areas.
Also Read: India’s trade deficit widens in Jan 2026; Exports to US rise and Gold imports surge
