New Delhi: The unemployment rate in India’s employment market remained almost stable during the April-June 2026 quarter. According to data released on Monday by the Ministry of Statistics and Programme Implementation, the unemployment rate among the working-age population stood at 5.5 percent in the first quarter of the current financial year.
This figure was 5.6 percent in the same period a year ago. Meanwhile, the overall worker population ratio (WPR) stood at 51.4 percent in June 2026. This is the same as in May, but a marginal increase of 0.2 percentage points compared to 51.2 percent in June 2025.
Urban unemployment rate falls
According to the National Statistical Office’s (NSO) Periodic Labour Force Survey (PLFS), the urban employment market has shown improvement on a year-on-year basis. The urban unemployment rate declined to 6.6 percent in June 2026, compared to 7.1 percent in June 2025. This means the urban unemployment rate has declined by 0.5 percentage points in one year. The unemployment rate in rural areas remained roughly stable during this period.
Labor force participation rate 54.4 percent
The country’s overall labor force participation rate (LFPR) stood at 54.4 percent in June 2026. This is the same as in May 2026 and 0.2 percentage points higher than 54.2 percent in June 2025. The LFPR includes those who are employed or actively seeking employment.
Annual increase in women’s participation
The female labor force participation rate was 32.7 percent in June 2026. It was 32.8 percent in May, but this was an increase of 0.7 percentage points compared to 32 percent in June 2025. Women’s labor force participation in rural areas saw a greater improvement. It increased to 36.6 percent in June 2026, compared to 35.2 percent in June 2025, an increase of 1.4 percentage points on an annual basis. In contrast, the female participation rate in urban areas declined slightly to 24.8 percent in June 2026, compared to 25.2 percent in June last year.
WPR in rural areas is 53.8 percent
The total worker population ratio in rural areas stood at 53.8 percent in June 2026. This is the same as in May, but 0.5 percentage points higher than 53.3 percent in June 2025. The WPR in urban areas improved marginally to 46.8 percent in June 2026 from 46.6 percent in May.
56.6 crore people are employed
According to the Ministry of Statistics, an average of 566 million people were employed in the country during April-June 2026. This included approximately 402 million men and 164 million women. The ministry stated that the number of workers aged 15 years and above was estimated based on the estimated population figures from the Ministry of Health and Family Welfare.
Data collected from more than 5.59 lakh people
The National Statistical Office’s quarterly estimates are based on information from 559,673 survey respondents. The PLFS collects key data on unemployment, labor force participation, and employment status.