What was India's unemployment rate in January 2026?

India's unemployment rate rose to 5% in January 2026.

What was the labor force participation rate in India in January 2026?

The overall labor force participation rate for persons aged 15 years and above in India was 55.9% in January 2026.

What factors contributed to the rise in India's unemployment rate in January 2026?

The slight increase in unemployment was attributed to seasonal factors, including the winter slowdown and post-harvest slack in rural regions.

Home / Business and Economy / India's Job Market Dips: Unemployment Hits 5% in Jan

India's Job Market Dips: Unemployment Hits 5% in Jan

16 Feb

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Summary

India's unemployment rate increased to 5% in January 2026.
Overall labor force participation rate was 55.9% in January.
Seasonal factors like winter slowdown contributed to the rise.

India's Job Market Dips: Unemployment Hits 5% in Jan

India's unemployment rate saw a marginal increase in January 2026, rising to 5% from 4.8% in the previous month. This indicates a slight softening in the nation's labour market conditions as of February 16, 2026.

The overall labour force participation rate (LFPR) for individuals aged 15 and above recorded 55.9% in January, a minor decrease from 56.1% in December 2025. Concurrently, the worker population ratio (WPR) for this demographic also saw a slight dip to 53.1%.

Female LFPR for those aged 15 and above remained steady at 35.1% in January, consistent with previous months. Urban workforce participation also showed stability, with male and female LFPR in cities largely unchanged. Rural areas experienced a similar steadiness in male unemployment rates.