Unemployment rate in urban India declines to 6.6% in January-March 2026

Ministry of Statistics and Programme Implementation (MoSPI) in its Periodic Labour Force Survey (PLFS) has shown the unemployment rate among people aged 15 and above has declined marginally to 6.6% in January-March 2026 from 6.7% in October-December 2025. Further, the overall unemployment rate in urban areas exhibited a declining trend during January-March 2026 compared to the last two quarters.

In contrast, the joblessness in rural areas has edged up marginally to 4.3% in the March quarter from 4.0% in October-December 2025. Meanwhile, regular wage/salaried employees in rural areas showed an upward movement at 15.5% during January-March 2026 from 14.8% in the previous quarter.

The share of self-employed persons declined to 62.5% during the quarter from 63.2% in October-December 2025. In urban areas, the distribution of workers across different statuses remained broadly stable compared to the previous quarter.

The sectoral distribution of employment continues to exhibit a similar structural pattern, with the rural workforce predominantly engaged in the primary sector and the urban workforce concentrated in the tertiary sector. In rural areas, the share of workers engaged in agriculture stood at 55.8% during the March quarter, marking a decline from 58.5% in the previous quarter, whereas the share of employment in the tertiary sector rose from 20.6% in the December quarter 2025 to 21.7% during January to March 2026.

Further, the secondary sector, along with mining and quarrying in rural areas,as witnessed a rise from 20.9% to 22.6% ithe n March quarter, while in urban areas, the sectoral distribution of workers remained largely stable.

In the March quarter, the Labour Force Participation Rate (LFPR) remained steady. The overall LFPR among the age group was estimated at 55.5% in January-March 2026, compared to 55.8% in the previous quarter. In rural areas, LFPR was 58.2% in the quarter while it stood at 58.4% in October-December 2025. The Urban LFPR was 50.2% in January-March 2026 compared to 50.4% in the preceding quarter.

Moreover, the overall Worker Population Ratio (WPR) stood at 52.8% in January-March 2026 compared to 53.1% in October-December 2025. While rural WPR marginally declined to 55.7% from 56.1% in the previous quarter, urban WPR maintained its stability at 46.9% as compared to 47.1%.