India’s unemployment rate for people aged 15 and above rose to 5 per cent in January 2026, up from 4.8 per cent in December 2025, according to the latest Periodic Labour Force Survey (PLFS). The increase was seen in both rural and urban areas, though rural factors played a bigger role.
The National Statistics Office (NSO) explained that seasonal slowdowns—such as reduced activity in construction, agriculture-related work, transport and small trade during winter—contributed to the rise. Rural unemployment moved from 3.9 to 4.2 per cent, while urban unemployment edged up from 6.7 to 7 per cent
Labour force participation also dipped slightly. The overall participation rate fell to 55.9 per cent in January, compared to 56.1 per cent in December. Rural participation dropped from 59 per cent to 58.7 per cent, while urban participation remained steady at around 50.3 per cent. Female participation stood at 35.1 per cent, with rural women at 39.7 per cent and urban women at 25.5 per cent.
The Worker Population Ratio (WPR), which measures the share of employed people in the population, showed broad stability. Rural WPR declined slightly from 56.7 per cent in December to 56.2 per cent in January, while urban WPR held steady at 46.8 per cent overall. Male WPR in rural areas was 75.7 per cent, and female WPR was 38 per cent, both marginally lower than the previous month.
The survey also noted that unemployment among men remained stable, while joblessness among women rose slightly, though still within the range seen last year, that is, in 2025.
The PLFS has been conducted monthly since January 2025, and is the government’s main source of employment data. The January 2026 bulletin is the tenth in the series, based on responses from over 3.73 lakh people nationwide.