Urban Unemployment Rate Slightly Decreases to 6.6% in March Quarter
Urban unemployment rate eases marginally to 6.6% in March quarter
Business Standard
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The urban unemployment rate in India has decreased marginally to 6.6% in the March 2026 quarter, down from 6.7% in the previous quarter. The Periodic Labour Force Survey indicates a stable labor market, with a notable increase in rural employment in the secondary sector.
- 01Urban unemployment rate fell to 6.6% from 6.7% in the previous quarter.
- 02Rural unemployment increased slightly to 4.3% from 4.0%.
- 03Regular wage/salaried employment in rural areas rose to 15.5%.
- 04Labour Force Participation Rate (LFPR) remained steady at 55.5%.
- 05Overall Worker Population Ratio (WPR) declined to 52.8%.
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According to the Periodic Labour Force Survey (PLFS) released by the National Statistics Office, the urban unemployment rate in India has decreased to 6.6% for the March 2026 quarter, down from 6.7% in the October-December 2025 quarter. This marks a continuation of a declining trend in urban joblessness. In contrast, the rural unemployment rate edged up slightly to 4.3% from 4.0%. The survey, which included data from 561,822 individuals aged 15 and above, indicated that regular wage employment in rural areas increased to 15.5%, while the share of self-employed individuals decreased to 62.5%. The overall Labour Force Participation Rate (LFPR) remained stable at 55.5%, with urban LFPR at 50.2%. The Worker Population Ratio (WPR) also saw a slight decline to 52.8% from 53.1% in the previous quarter, indicating a stable labor market despite minor fluctuations in employment status across sectors.
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The marginal decrease in urban unemployment may provide some relief to job seekers in cities, while the slight rise in rural unemployment highlights ongoing challenges in the agricultural sector.
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