Unemployment rate rises in urban areas in September

India’s unemployment rate for those aged 15 years and above remained steady in September at 5.0%, as a rise in joblessness in urban areas was compensated by a broadly stable rural unemployment rate. The rate was 5.2% a year earlier.

The unemployment rate among men aged 15 years and above remained unchanged at 4.9% in September, continuing the stable or downward trend seen since June. Among women, it edged up to 5.2% from 5.1% in August, the ministry said.

Urban unemployment rose to 6.9% in September from 6.8% in August, driven by an increase among women even as the rate declined marginally among men, according to the latest Periodic Labour Force Survey Monthly (PLFS-M) bulletin released by the statistics ministry on Thursday. It was 6.8% a year ago.

The unemployment rate among urban women rose to 9.2% in September from 8.9% in August, while the rate among urban men fell to 6.0% from 6.1% over the same period.

The unemployment rate in rural areas also rose marginally to 4.2% in the month, up from 4.1% in August, but remained sharply below the 4.6% recorded a year ago. In rural areas, while the unemployment rate rose marginally among males from 4.3% to 4.4%, it remained stable for rural females at 3.9%, its lowest level recorded during 2026.

Year-on-year, the unemployment rate among men fell by 0.2 percentage points to 4.9% in September, while the rate among women declined by 0.3 percentage points. The decline was sharper in rural areas, where the rate for men fell to 4.4% from 4.7% and for women to 3.9% from 4.3%, the ministry said.

The PLFS conducted by the National Statistical Office (NSO), MoSPI, is the primary source of data on activity participation and employment and unemployment conditions of the population. The PLFS survey methodology has been modified from January 2025 to provide monthly and quarterly estimates of labour force indicators.

Monthly Bulletins present estimates of key labour market indicators, viz., labour force participation rate (LFPR), worker population ratio (WPR), and unemployment rate at the all-India level, following the current weekly status (CWS) approach.

According to the survey, the overall LFPR among persons of age 15 years and above was estimated at 55.5% in September, down marginally from 55.6% in August but higher than 55.3% recorded in September 2025.

In rural areas, LFPR was recorded at 58.0% against 58.2% in August, while the urban LFPR registered a moderate increase from 50.4% in August to 50.7% in September, according to the MoSPI data.

Compared to September 2025, rural LFPR increased from 57.4% to 58.0%, while urban LFPR registered a marginal decline from 50.9% to 50.7%.

“The overall female LFPR stood at 34.6% in September, compared with 34.8% in August, 2026. Urban female LFPR recorded a notable month-on-month increase of 0.5 percentage points, rising from 25.4% to 25.9% and reaching its highest level since October 2025. Rural female LFPR estimated at 38.9% in September against 39.4% in the previous month,” the MoSPI statement said.

On a year-on-year basis, overall female LFPR increased from 34.1% in September 2025 to 34.6% in September 2026. Rural female LFPR rose from 37.9% to 38.9%, while urban female LFPR remained broadly stable at 25.9% in September compared with 26.1% a year ago.

The overall worker population ratio remained broadly stable at 52.7% in September, compared with 52.8% in August, while urban WPR reached its highest level at 47.2% since October, 2025. “This improvement was reflected across genders, with urban male WPR rising from 70.7% to 71.0% and urban female WPR increasing from 23.2% to 23.5%. Rural WPR moderated from 55.8% to 55.5% over the month,” the survey said.

On a year-on-year basis, overall WPR increased from 52.4% in September 2025 to 52.7% in September 2026. Rural WPR recorded a rise from 54.8% to 55.5%, while urban WPR remained broadly stable at around 47%.

At the all-India level, male WPR rose to 73.6%, while female WPR increased to 32.8% over the same period.

At the all-India level, the monthly estimates are based on information collected from a total of 370,513 persons surveyed. About 211,333 persons were surveyed in rural areas and 159,180 in urban areas.

Subhash is the infrastructure editor at Mint and tracks the momentous developments taking place in the space that is fast changing the Indian landscape. He finds reporting to be a passion that provides the necessary adrenaline rush and keeps you going.

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