Unemployment Rate 2026: A marginal increase in the country’s unemployment rate to 5 percent; Effect of winter seasonal factors

• The harsh winter slowed work in sectors such as construction, transportation and small businesses
• As compared to the rural areas, the unemployment graph is higher in the urban areas, and the situation there is alarming
• The rural working population ratio (WPR) dropped to 56.2 percent in January.

Effect of seasonal recession in rural areas

Unemployment Rate 2026: The unemployment rate among people aged 15 years and above in India declined marginally to 5 percent in January 2026 from 4.8 percent in December 2025, according to the latest Periodic Labor Force Survey released by the National Statistics Office (NSO).

The main reasons for the increase are seasonal changes

According to NSO, this increase in unemployment rate is not due to any structural weakness but due to seasonal factors.

A natural decline in sector turnover

Effect of winter: Sectors such as construction, transportation and small businesses tend to slow down during winter.

Temporary delay: Some workers are not actively looking for work during this period. The proportion of people working or looking for work in the total population decreased slightly.

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Working Population Ratio (WPR)

Working population ratio (WPR) in rural areas fell to 56.2% in January.

gender situation

The data showed that the unemployment rate for men remained steady, but the unemployment rate for women rose compared to December. However, the NSO clarified that this increase is limited to the normal April-December 2025 period and is only a ‘short-term fluctuation’.

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India’s unemployment rate rises in January 2026; Big hit to urban areas

According to the latest data for January 2026, the overall unemployment rate in the country has increased and the situation in urban areas is more alarming. Compared to December 2025, the unemployment graph in both rural and urban areas has risen.

Comparative Statistics of Unemployment Rate:

The urban unemployment rate rose sharply to 10.0% in January from 6.7% in December, while rural areas also recorded an increase of 1.1%. Due to this, the national average has gone from 4.8% to 5.0%, and the administration is facing a big challenge to prevent the rising unemployment.