The unemployment rate in India fell to 5.1% in July of 2026 from 5.5% in the previous month, the lowest in four months. The result reflected fresh robustness in the Indian labor market after the gradual increase in the unemployment rate since the start of the year, aligned with macroeconomic headwinds from soaring energy prices and pressure on the rupee. The unemployment rate fell sharply in rural areas (4.5% vs 5% in June), which offset the uptick in urban unemployment (6.7% vs 6.6%). The drop in unemployment coincided with a sharp increase in the labor force participation rate (55.4% vs 54.4%), pointing to lower unemployment from an increase in employment. Consequently, the employment rate surged to 52.5% from 51.4%. source: Ministry of Statistics and Programme Implementation (MOSPI)

Unemployment Rate in India decreased to 5.10 percent in July from 5.50 percent in June of 2026. Unemployment Rate in India averaged 7.50 percent from 2018 until 2026, reaching an all time high of 20.80 percent in June of 2020 and a record low of 4.70 percent in November of 2025. This page provides - India Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. India Unemployment Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2026.

Unemployment Rate in India decreased to 5.10 percent in July from 5.50 percent in June of 2026. Unemployment Rate in India is expected to be 5.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the India Unemployment Rate is projected to trend around 5.40 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-07-15 10:30 AM
Unemployment Rate
Jun 5.5% 5.5% 5.4% 5.30%
2026-08-17 10:30 AM
Unemployment Rate
Jul 5.1% 5.5% 5.4% 5.4%
2026-09-15 10:30 AM
Unemployment Rate
Aug 5.1%


Related Last Previous Unit Reference
Employment Rate 52.50 51.40 percent Jul 2026
Labor Force Participation Rate 55.40 54.40 percent Jul 2026
Minimum Wages 178.00 178.00 INR/Day Dec 2026
Population 1421.00 1408.00 Million Dec 2025
Retirement Age Men 60.00 60.00 Years Dec 2026
Retirement Age Women 60.00 60.00 Years Dec 2026
Unemployment Rate 5.10 5.50 percent Jul 2026
Wages 22698.65 21454.87 INR/Month Dec 2025


India Unemployment Rate
In India, the unemployment rate is estimated by directly interviewing a large sample of randomly selected households. Centre for Monitoring Indian Economy Consumer Pyramids panel of households includes over 174,405 households including over 522,000 members who are over 15 years old.
Actual Previous Highest Lowest Dates Unit Frequency
5.10 5.50 20.80 4.70 2018 - 2026 percent Monthly

News Stream
India Unemployment Rate Falls
The unemployment rate in India fell to 5.1% in July of 2026 from 5.5% in the previous month, the lowest in four months. The result reflected fresh robustness in the Indian labor market after the gradual increase in the unemployment rate since the start of the year, aligned with macroeconomic headwinds from soaring energy prices and pressure on the rupee. The unemployment rate fell sharply in rural areas (4.5% vs 5% in June), which offset the uptick in urban unemployment (6.7% vs 6.6%). The drop in unemployment coincided with a sharp increase in the labor force participation rate (55.4% vs 54.4%), pointing to lower unemployment from an increase in employment. Consequently, the employment rate surged to 52.5% from 51.4%.
2026-08-17
India Unemployment Rate Unexpectedly Holds
The unemployment rate in India remained unchanged from the previous month at 5.5% in June of 2026, the highest in nearly one year, slightly above market expectations that it would ease to 5.4%. The surge in energy prices due to the halt of commercial vessel flows in the Persian Gulf weakened the rupee and dampened the purchasing power for household and businesses. The unemployment rate rose to 6.6% for urban centers from 6.4% in the previous month. This was enough to offset a 0.1 percentage point drop for unemployment in rural areas of India, easing from a one-year high. Still, the unemployment rate inched down by 0.1 percentage point from the corresponding period of the previous year. The employment rate remained unchanged at the 11-month low of 51.4%, and the labor force participation rate remained at the 11-month low of 54.4%.
2026-07-15
India Unemployment Rate Rises More than Expected
The unemployment rate in India rose to 5.5% in May of 2026 from 5.2% in the previous month, the highest in nearly one year, and ahead of expectations of 5.3%. The deterioration in the labor market was aligned with macroeconomic headwinds in India in recent weeks. The surge in energy prices due to the halt of commercial vessel flows in the Persian Gulf weakened the rupee and dampened the purchasing power for household and businesses. The unemployment rate rose to a one-year high of 5.1% for the rural population, 0.5 percentage points higher than the previous month. Conversely, the urban unemployment rate fell to 6.4% from 6.6% in April, the lowest in over one year. The unemployment rate remained unchanged from the corresponding period of the previous year.
2026-06-15