Synopsis: India’s unemployment rate declined slightly to 4.9% in February 2026 from 5% in January, according to the latest PLFS data. The improvement was led by a fall in urban and female unemployment, while labour force participation remained stable.
India’s Unemployment Rate Falls to 4.9% in February 2026
India’s unemployment rate for individuals aged 15 years and above declined marginally to 4.9% in February 2026 from 5% in January, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO).
The data indicates a modest improvement in employment conditions, particularly in urban areas.
Urban Unemployment Shows Improvement
The urban unemployment rate declined to 6.6% in February, reversing the increase recorded in January. It also fell below the 6.7% level observed in December 2025.
In contrast, rural unemployment remained stable at 4.2% during the same period.
Female Unemployment Declines Significantly
The survey highlighted a notable improvement in employment conditions for women.
- Overall Female Unemployment: 5.1% (January: 5.6%)
- Urban Female Unemployment: 8.7% (January: 9.8%)
- Rural Female Unemployment: 4.0% (January: 4.3%)
The decline in female unemployment reflects improving participation and opportunities for women in both rural and urban labour markets.
Male Unemployment Remains Stable
The unemployment rate among men remained largely unchanged at 4.8% in February 2026, indicating stable employment conditions in this segment.
Labour Force Participation Rate Holds Steady
The Labour Force Participation Rate (LFPR) for individuals aged 15 years and above remained unchanged at 55.9% in February.
- Rural LFPR: 58.7%
- Urban LFPR: 50.4% (slightly up from 50.3%)
Female participation in the workforce also saw a marginal increase.
- Overall Female LFPR: 35.3% (January: 35.1%)
- Rural Female LFPR: 40.0% (January: 39.7%)
- Urban Female LFPR: 25.5% (unchanged)
Worker Population Ratio Shows Stability
The Worker Population Ratio (WPR), which measures the proportion of employed individuals in the population, remained broadly stable.
- Overall WPR: 53.2% (January: 53.1%)
- Rural WPR: 56.3%
- Urban WPR: 47.0% (January: 46.8%)
Survey Coverage and Methodology
The PLFS data is based on responses from 3,74,879 individuals across the country.
The survey is the government’s primary tool for measuring employment and unemployment trends in India. Its methodology was revised from January 2025 to provide more frequent monthly and quarterly labour market estimates.
Signs of Gradual Labour Market Improvement
The latest data suggests a gradual improvement in India’s labour market conditions, especially with declining urban and female unemployment rates.
However, experts note that sustained job creation and increased workforce participation will be key to maintaining this positive trend in the coming months.
📌 Key Takeaway
India’s unemployment rate dipped to 4.9% in February 2026, driven by a decline in urban and female unemployment. While overall labour participation remained stable, continued job creation will be essential to sustain the improving trend.