New Delhi — India’s unemployment rate fell to 4.9% in February 2026, down from 5% in January, according to data released by the Ministry of Statistics. The decline reflects improvements in both urban and rural labor markets.
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Among urban residents aged 15 and above, the unemployment rate decreased slightly from 6.7% to 6.6%. In rural areas, the overall rate remained steady at 4.2%. Female employment saw significant gains: urban women’s unemployment dropped from 9.8% to 8.7%, while rural women’s rate fell from 4.3% to 4%.
The labor force participation rate (LFPR) for the overall population remained stable at 55.9%, with rural and urban areas recording 58.7% and 50.4%, respectively. Among women aged 15 and above, participation improved to 35.3%, rising to 40% in rural areas, while remaining unchanged at 25.5% in urban areas.
The monthly unemployment figures were compiled in collaboration with the National Sample Survey Office (NSSO), covering 3,74,879 respondents. Previously, India reported only quarterly unemployment statistics, but the government has shifted to publishing both monthly and quarterly data since January 2025 to provide a more timely picture of the labor market.
Analysts say the latest numbers signal steady recovery in employment opportunities across the country, with increased participation of women in the workforce contributing to the overall improvement.
