India’s Jobless Rate Edges Higher in January

2026-02-16 11:03 By Joana Ferreira 1 min. read

India’s unemployment rate rose to 5.0% in January 2026 from 4.8% in December, coming in above market expectations of 4.8%.

The increase was driven by higher joblessness in both rural areas (4.2% vs. 3.9%) and urban centers (7.0% vs. 6.7%).

Unemployment among women climbed notably, reaching 9.8% in urban areas (up from 9.1%) and 4.3% in rural regions (from 3.6%).

Male unemployment also edged higher in urban areas to 6.0% from 5.9%, while remaining unchanged at 4.1% in rural areas.

Meanwhile, the employment rate slipped to 53.1% from 53.4% in December, and the labor force participation rate declined to 55.9% from 56.1%, pointing to a slight softening in overall labor market conditions.



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India’s Jobless Rate Edges Higher in January
India’s unemployment rate rose to 5.0% in January 2026 from 4.8% in December, coming in above market expectations of 4.8%. The increase was driven by higher joblessness in both rural areas (4.2% vs. 3.9%) and urban centers (7.0% vs. 6.7%). Unemployment among women climbed notably, reaching 9.8% in urban areas (up from 9.1%) and 4.3% in rural regions (from 3.6%). Male unemployment also edged higher in urban areas to 6.0% from 5.9%, while remaining unchanged at 4.1% in rural areas. Meanwhile, the employment rate slipped to 53.1% from 53.4% in December, and the labor force participation rate declined to 55.9% from 56.1%, pointing to a slight softening in overall labor market conditions.
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