India’s Unemployment Rate rises to 5.1% in March 2026: Urban joblessness surges

New Delhi: The government data showed that unemployment rate (UR) for individuals aged 15 and above increased slightly to 5.1 per cent in March 2026 as compared to 4.9 per cent in February. The higher unemployment rate was attributed to rising joblessness in urban areas. The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) conducts the Periodic Labour Force Survey (PLFS). The survey helps in accumulating the primary source of data on activity participation, employment and unemployment conditions of the population.

The government has modified the PLFS survey methodology from January 2025 to provide monthly and quarterly estimates of labour force indicators for the country.

There was no change in the Unemployment Rate among the rural females aged 15 years and above in March 2026. However, the male group recorded marginal jump in the previous month as compared to February.

The survey is done after taking queries from 3,75,262 persons. Persons surveyed in rural areas 2,13,984, while 1,61,278 persons were surveyed in urban areas.

Urban Labour Force Participation Rate (LFPR)

The overall LFPR among persons aged 15 years and above stood at 55.4 per cent in March 2026; in February it was 55.9 per cent. Rural LFPR was 58 per cent in March and 58.7 per cent in February. The urban LFPR remained almost stable during this period.

The UR among persons of age 15 years and above rose slightly to 5.1% in March, 2026 from 4.9% in February, 2026 mainly driven by urban UR which edged up from 6.6% in February, 2026 to 6.8% in March, 2026.

Among rural female aged 15 years and above, the UR remained almost stable in March, 2026, whereas the male UR in the same age group was marginally high in March, 2026 in comparison to February, 2026.

“Female Labour Force Participation Rate (LFPR) in March 2026 was reported as 34.4 per cent against 35.3 per cent in February 2026. Female LFPR in rural areas was found to be 38.9 per cent in March 2026, while the same stood at 25.2 per cent in urban areas during the month,” the statement said.

(With PTI inputs)