Urban Job Market Improves, Unemployment at 6.6%: PLFS

India’s urban unemployment rate declined to 6.6 per cent in February 2026, marking an improvement from 7.0 per cent in January, according to the latest Monthly Bulletin of the Periodic Labour Force Survey released by the Ministry of Statistics and Programme Implementation.

The report indicates a gradual stabilisation in the labour market, with the overall unemployment rate for individuals aged 15 years and above easing to 4.9 per cent in February from 5.0 per cent in the previous month. This improvement was largely driven by better urban employment conditions, while rural unemployment remained unchanged at 4.2 per cent.

Labour force participation showed mixed trends. The overall Labour Force Participation Rate (LFPR) remained steady at 55.9 per cent. In rural areas, LFPR stood at 58.7 per cent, while urban participation saw a marginal uptick to 50.4 per cent from 50.3 per cent in January, reflecting a slight increase in job-seeking activity in cities.

The Worker Population Ratio (WPR), which measures the proportion of employed individuals, also remained largely stable. The overall WPR was estimated at 53.2 per cent in February, compared to 53.1 per cent in January. Rural WPR stood higher at 56.3 per cent, while urban areas recorded a ratio of 47.0 per cent.

Encouragingly, female participation in the workforce showed incremental gains. Female LFPR rose to 35.3 per cent in February from 35.1 per cent in January. Rural female participation increased to 40.0 per cent, while urban female LFPR remained unchanged at 25.5 per cent.

Similarly, the female Worker Population Ratio improved to 33.4 per cent from 33.1 per cent, indicating a rise in employment among women. Female unemployment also saw a notable decline, dropping to 5.1 per cent in February from 5.6 per cent in January. Urban female unemployment registered a sharper fall to 8.7 per cent from 9.8 per cent.

Conducted by the National Statistical Office, the survey covered 3,74,879 individuals, including 2,13,679 from rural areas and 1,61,200 from urban regions. The PLFS continues to serve as the country’s primary benchmark for tracking employment trends, with updated methodologies enabling more frequent and detailed labour market insights.