India’s unemployment rate moderates in February, rural trend unchanged

New Delhi: India’s unemployment rate for people aged 15 years and above eased marginally to 4.9% in February from 5.0% in January, driven by a decline in joblessness in urban areas.

The unemployment rate in urban areas declined to 6.6% in February from 7.0% in the previous month, according to the latest periodic labour force survey monthly bulletin (PLFS-M) released by the statistics ministry on Monday. Urban female unemployment declined to 8.7% in February from 9.8% in January, helping ease pressure in city labour markets.

In contrast, the rural unemployment rate remained unchanged at 4.2%. A marginal increase in male unemployment, from 4.1% to 4.2%, was offset by a fall in rural female unemployment to 4.0% from 4.3% in January.

The periodic labour force survey (PLFS) conducted by National Statistics Office (NSO) is the primary source of data on activity participation and employment and unemployment conditions of the population.

The PLFS survey methodology has been modified from January, 2025 to provide monthly and quarterly estimates of labour force indicators for the country. Monthly bulletins present estimates of key labour market indicators namely labour force participation Rate (LFPR), worker population ratio (WPR) and unemployment rate (UR) at the all-India level.

According to the survey, the overall labour force participation rate (LFPR) among persons of age 15 years and above was estimated at 55.9% in February, unchanged from January.

In rural areas, the LFPR stood at 58.7% in February 2026. The urban LFPR was estimated at 50.4%, a marginal increase from 50.3% in January.

The worker population ratio (WPR) in the age group 15 years and above remained broadly stable in both rural and urban areas in February, the survey said: The overall WPR is estimated at 53.2% in February, 2026, in comparison to 53.1% in January, 2026. In rural areas, WPR stood at 56.3% in February, 2026. Similarly, the urban WPR observed as 47.0% in February, 2026, compared with 46.8% in January 2026.

In the age group of 15 years and above, the female WPR improved to 33.4% in February 2026 from 33.1% in January 2026.

At the all-India level, the monthly estimates are based on information collected from a total of 374,879 individuals. About 213,679 people were surveyed in rural areas and 161,200 in urban areas.

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