India's Unemployment Rate Increases to 5% in Q4 FY26
India’s jobless rate rises to 5% in Q4
The Economic TimesImage: The Economic Times
India's unemployment rate rose to 5% in the January-March quarter of FY26, up from 4.8% in the previous quarter, largely due to increased female joblessness. Urban unemployment decreased slightly, while rural unemployment saw a rise. Youth unemployment also climbed to 15%.
- 01Overall unemployment rate increased to 5% in Q4 FY26.
- 02Female unemployment rose to 5.3%, while male unemployment remained at 4.8%.
- 03Youth unemployment among those aged 15-29 reached 15%.
- 04Chhattisgarh had the highest unemployment rate at 9.5%.
- 05Labour force participation rate dropped to 55.5%.
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India's unemployment rate increased to 5% in the January-March quarter of FY26, up from 4.8% in the previous quarter, as reported by the Ministry of Statistics and Programme Implementation. The rise was primarily attributed to a surge in female unemployment, which climbed to 5.3%, while male unemployment remained steady at 4.8%. Urban unemployment saw a slight decline to 6.6%, while rural unemployment rose to 4.3%. Notably, Chhattisgarh recorded the highest unemployment rate among states at 9.5%, followed closely by Jammu & Kashmir at 9.3%. Youth unemployment, particularly among individuals aged 15-29, increased to 15%, marking a rise from 14.3% in the previous quarter. The labour force participation rate (LFPR) also experienced a decline, falling to 55.5% from 55.8% in the prior quarter, with female participation decreasing to 34.7% and male participation to 77.3%. Overall, self-employment continued to be the dominant form of work, accounting for 55.8% of employment.
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The rise in unemployment, particularly among women and youth, may lead to increased economic challenges and reduced household incomes, affecting consumer spending.
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