3 weeks ago
India unemployment rate hits four-quarter high of 5.4%
India has a big survey that asks people across the country whether they have jobs.
Workers aged 15 and older are included.
It found that in April, May and June, 5.4 out of every 100 people looking for work did not have a job, the highest rate in four quarters.
Joblessness went up in villages and rose slightly in cities.
Young people had a harder time finding work, especially young women.
But some things improved: more workers got regular jobs with a fixed salary.
In villages, fewer people depend only on farming, and more now work in factories, construction and services.
The survey helps the government understand how the job market is changing.
India's unemployment rate for people aged 15 and above rose to a four-quarter high of 5.4% in April-June 2026, up from 5.0% in January-March.
Urban unemployment edged up to 6.7% from 6.6%, while rural unemployment rose to 4.8% from 4.3%.
The labour force participation rate fell to a five-quarter low of 54.6%, with female participation dropping to 33.2% from 34.7%.
Youth unemployment jumped to a series high of 15.9%, including a record 19.6% for young women.
Regular wage and salaried employment rose to 16.1% of rural and 49.3% of urban workers, as agriculture's rural share fell to 52.9%.
- Who
- People aged 15 years and above in India's labour force, surveyed by the Ministry of Statistics and Programme Implementation (MoSPI) through the Periodic Labour Force Survey (PLFS).
- What
- India's unemployment rate rose to a four-quarter high of 5.4%, urban joblessness edged up to 6.7%, rural unemployment rose to 4.8%, and labour force participation fell to a five-quarter low of 54.6%.
- Where
- India, covering both rural and urban areas.
- When
- April-June 2026 quarter (the first quarter of FY 2026-27); data released on Monday.
- Why
- The quarterly survey tracks how easily people find work; the data shows rising youth and female unemployment even as regular wage employment grows.
Warning signs in the jobs data
Signs of a resilient labour market
Trend in unemployment
Warning signs in the jobs data
Unemployment rose to a four-quarter high of 5.4%, with joblessness up in both rural (4.8%) and urban (6.7%) areas.
Signs of a resilient labour market
Urban unemployment stayed broadly stable at 6.7%, which State Bank of India described as a resilient urban labour market.
Labour force participation
Warning signs in the jobs data
The labour force participation rate fell to a five-quarter low of 54.6%, with female participation dropping sharply to 33.2%.
Signs of a resilient labour market
Urban labour force participation was unchanged at 50.2%, and male urban participation improved to 75.3%.
Quality of employment
Warning signs in the jobs data
Youth unemployment hit a series high of 15.9%, with female youth unemployment at a record 19.6%.
Signs of a resilient labour market
The share of regular wage and salaried jobs rose in both rural (16.1%) and urban (49.3%) areas as employment shifted beyond farms.
Key facts
- Overall unemployment rate (Apr-Jun)
- 5.4% (four-quarter high, up from 5.0%)
- Urban unemployment rate
- 6.7% (up from 6.6% in Jan-Mar)
- Rural unemployment rate
- 4.8% (up from 4.3% in Jan-Mar)
- Labour force participation rate
- 54.6% (five-quarter low, down from 55.5%)
- Female labour force participation rate
- 33.2% (down from 34.7%)
- Youth unemployment (15-29 years)
- 15.9% (series high)
- Female youth unemployment
- 19.6% (series high)
- Average employed persons (15+ years)
- 566 million (402 million men, 164 million women)
Quotes
State Bank of India
Official from India’s State Bank of India
“MoSPI’s latest PLFS indicates a resilient urban labour market despite a marginal moderation in the overall labour force participation rate, with urban unemployment remaining stable at 6.7%, male labour force participation improving to 75.3%, and the share of regular salaried employment increasing across both rural and urban areas.”
financialexpress.com
Sources
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