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Unemployment in India Rises to 5% in January: Periodic Labour Force Survey (PLFS)

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Source: TH

Context:

According to the Periodic Labour Force Survey (PLFS), India’s unemployment rate (UR) among persons aged 15 years and above rose slightly to 5% in January 2026, up from 4.8% in December 2025.

Key Findings of the Survey

1. Marginal Rise in Unemployment
  • Overall unemployment increased to 5%.
  • Rise observed in both rural and urban areas.
2. Decline in Labour Market Indicators

The survey reported a fall in:

  • Labour Force Participation Rate (LFPR): Share of working-age population that is employed or seeking work.
  • Worker Population Ratio (WPR): Share of population actually employed.

➡ Decline in both rural and urban regions.

About Periodic Labour Force Survey (PLFS)

  • Conducted by the National Statistical Office (NSO).
  • Provides data on:
    • Employment
    • Unemployment
    • Labour force participation
  • Key objective:
    • Measure labour market indicators in rural and urban areas.

Important Labour Market Indicators

  • Unemployment Rate (UR) = Percentage of unemployed persons among labour force.
  • Labour Force Participation Rate (LFPR) = Labour force ÷ working-age population.
  • Worker Population Ratio (WPR) = Employed persons ÷ total population.

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  • Answer Key
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  • IRDAI
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