India Unemployment Rate Rises to 5% in January 2026, Rural Slowdown Cited: PLFS Data

Joblessness Edges Higher Amid Seasonal Factors in Rural Economy​

New Delhi, February 16: India’s unemployment rate among persons aged 15 years and above rose marginally to 5 per cent in January 2026, up from 4.8 per cent in December 2025, according to the latest Periodic Labour Force Survey released by the National Statistics Office.

The data shows that the increase in unemployment was accompanied by a decline in both the Labour Force Participation Rate and the Worker Population Ratio across rural and urban areas.

Rural Factors Drive Rise in Unemployment Rate​

The National Statistics Office under the Ministry of Statistics and Programme Implementation attributed the rise in the unemployment rate primarily to rural factors. Seasonal influences, post-harvest slack, and discouragement effects played a significant role in January.

The statement noted that activities such as construction, agriculture-related work, transport, and small trade slowed during the winter season. Urban areas, however, remained largely stable.

The rural unemployment rate increased from 3.9 per cent in December 2025 to 4.2 per cent in January 2026. In urban areas, the rate rose from 6.7 per cent to 7.0 per cent during the same period.

Male Unemployment Stable, Female Joblessness Rises​

Among males aged 15 years and above, the unemployment rate remained stable in January 2026.

In contrast, unemployment among females in the same age group was higher compared to December 2025. However, the female unemployment rate stayed within the range observed between April and December 2025, indicating a short-term increase rather than a significant deterioration in female labour market conditions.

Labour Force Participation Rate Slips to 55.9%​

The overall Labour Force Participation Rate among persons aged 15 years and above declined to 55.9 per cent in January 2026 from 56.1 per cent in December 2025.

Rural LFPR fell to 58.7 per cent from 59.0 per cent in the previous month. Urban LFPR stood at 50.3 per cent in January compared to 50.2 per cent in December.

Female participation in the labour force remained largely stable with marginal variations. The overall female LFPR stood at 35.1 per cent. In rural areas, female LFPR was 39.7 per cent, while in urban areas it was 25.5 per cent in January.

Worker Population Ratio Shows Broad Stability​

The overall Worker Population Ratio among persons aged 15 years and above showed broad stability in January 2026.

In rural areas, the WPR declined slightly to 56.2 per cent from 56.7 per cent in December 2025. Rural male WPR stood at 75.7 per cent compared to 76.0 per cent in the previous month, while rural female WPR was 38.0 per cent against 38.6 per cent earlier.

Urban WPR remained stable across genders, with 70.5 per cent for males, 23.0 per cent for females, and 46.8 per cent at the overall level in January.

PLFS January 2026 Bulletin Based on 3.73 Lakh Sample​

At the all-India level, the January 2026 estimates are based on information collected from a sample of 3,73,158 persons.

The Periodic Labour Force Survey conducted by the National Statistics Office is the primary source of data on employment, unemployment, and activity participation conditions in the country.

The survey methodology was modified from January 2025 to provide monthly and quarterly estimates of labour force indicators. With the release of the January 2026 data, the bulletin marks the tenth in the monthly series, following reports issued from April 2025 to December 2025.