India’s unemployment rate rose to 5% in January 2026, up from 4.8% in December, according to government data released on Monday, February 16, indicating
a marginal deterioration in labour market conditions on a month-on-month basis.
The overall labour force participation rate (LFPR) for persons aged 15 years and above stood at 55.9% in January, compared with 56.1% in December 2025. Female LFPR in the same age group was recorded at 35.1% in January, unchanged from November levels.
After witnessing a gradual rise between June and December 2025, the worker population ratio (WPR) for individuals aged 15 years and above edged lower to 53.1% in January.
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Urban workforce participation remained largely stable. For persons aged 15 years and above, male LFPR in urban areas stood at 70.5% in January, while female LFPR was 23%, both broadly unchanged from the previous month.
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In rural areas, the male unemployment rate in the 15 years and above category remained steady. The slight softening in key labour indicators has been attributed to seasonal factors, including the winter slowdown and post-harvest slack in rural regions.
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