Unemployment in India rose to 5% in January, rural areas driving the increase

The unemployment rate in India rose to 5% in January 2026 from 4.8% in December 2025 among persons aged 15 years and above, according to a government survey released on Monday.

Data from the latest Periodic Labour Force Survey showed a marginal rise in joblessness across both rural and urban areas, along with a decline in the labour force participation rate and worker population ratio. The survey is conducted by the National Statistics Office under the Ministry of Statistics and Programme Implementation.

The National Statistics Office said the increase in unemployment and the decline in participation indicators were primarily driven by rural areas. Seasonal factors, post-harvest slack, and discouragement effects played a key role, it said, adding that winter months typically see a slowdown in activities such as construction, agriculture allied work, transport, and small trade, while urban areas remained largely stable.

Rural unemployment rose from 3.9% in December 2025 to 4.2% in January 2026. Urban unemployment also increased, edging up from 6.7% to 7.0% over the same period.

Among males aged 15 years and above, the unemployment rate remained stable in January. In contrast, unemployment among females increased compared to December, though it stayed within the range observed between April and December 2025, indicating a short-term rise rather than a structural weakening in female labour market conditions.

Overall labour force participation declined slightly to 55.9% in January from 56.1% in December. The worker population ratio remained broadly stable, with a marginal dip in rural areas after consistent gains since mid-2025.

The January estimates are based on data collected from 3,73,158 individuals. The January 2026 bulletin is the tenth monthly release since the survey methodology was modified last year to provide monthly and quarterly labour force indicators.