India's unemployment rate stays steady at 5% in September

Rural unemployment rate remained broadly stable at 4.2%, against 4.1% in the previous month, while urban unemployment rate edged up marginally from 6.8% to 6.9%.

According to the National Statistics Office's (NSO) Periodic Labour Force Survey, the overall unemployment rate declined by 0.2% and reached at 5.0% in last month, as compared with September 2025. Rural unemployment rate declined by 0.4% anually, from 4.6% in September last year to 4.2% in September 2026.

Unemployment rates declined year-on-year for both genders, with rural female unemployment rate reaching its lowest level during 2026.

Meanwhile, unemployment in urban areas remained broadly stable from 6.8% in September, 2025 to 6.9% in September, 2026.

Male unemploymeny rate among persons aged 15 years and above remained stable at 4.9 per cent in September 2026, compared with the previous month, continuing the downward or stable trend observed since June 2026.

Among females, the unemployment rate remained broadly stable at 5.2 per cent, up from 5.1 per cent the previous month.

In rural areas, female unemployment stood at 3.9 per cent, its lowest level in 2026, while urban female unemployment rate rose marginally from 8.9 per cent to 9.2 per cent.

According to the survey, the overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above stood at 55.5 per cent in September 2026, up 0.2% from September 2025.

Similarly, the Urban LFPR increased to 50.7% in September 2026, up from 50.4% in August 2026.

The Overall Worker Population Ratio (WPR) rose 0.3% year-on-year to 52.7% in September 2026.