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India's Job Market Dips: Unemployment Hits 5% in Jan
16 Feb
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 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.
The slight softening in these key labour indicators has been attributed to seasonal influences. These include the typical winter slowdown in economic activity and the post-harvest slack often observed in rural regions of India.
