The urban unemployment rate in India declined to 6.6 per cent in February 2026 from 7.0 per cent in January, reflecting a modest improvement in labour market conditions. The latest Monthly Bulletin of the Periodic Labour Force Survey (PLFS) also showed broad stability in labour force participation and workforce ratios, with some gains in female participation and employment.
Key Labour Market Indicators
The Labour Force Participation Rate (LFPR) for persons aged 15 years and above remained unchanged at 55.9 per cent in February 2026. Rural LFPR stood at 58.7 per cent, while urban LFPR rose marginally to 50.4 per cent from 50.3 per cent in January. The Worker Population Ratio (WPR) was broadly stable at 53.2 per cent, compared with 53.1 per cent in the previous month. Rural WPR stood at 56.3 per cent and urban WPR at 47.0 per cent.
Female Participation Improves
Female labour market indicators showed a slight improvement. Female LFPR for persons aged 15 years and above increased to 35.3 per cent in February from 35.1 per cent in January. Rural female LFPR rose to 40.0 per cent, while urban female participation remained unchanged at 25.5 per cent. The female WPR also improved to 33.4 per cent from 33.1 per cent, indicating a rise in female employment in both rural and urban areas.
Unemployment Trends
The overall unemployment rate for persons aged 15 years and above declined to 4.9 per cent in February from 5.0 per cent in January. Rural unemployment remained unchanged at 4.2 per cent, while the fall in urban unemployment drove the overall improvement. Female unemployment also declined to 5.1 per cent from 5.6 per cent. Urban female unemployment fell sharply to 8.7 per cent from 9.8 per cent.
PLFS Methodology and Coverage
The PLFS is conducted by the National Statistical Office and is the main source of official data on employment and unemployment in India. Since January 2025, the survey has used an updated methodology to provide monthly and quarterly labour market estimates. The February 2026 estimates were based on a survey covering 3,74,879 individuals, including 2,13,679 in rural areas and 1,61,200 in urban areas.
Last Modified: April 29, 2026