India's unemployment ticks up, urban jobs take a hit

Business Jan 15, 2026

India's unemployment rate nudged up to 4.8% in December 2025, just above November's 4.7%.
More people are joining the workforce—labor force participation rose to 56.1%—but finding jobs, especially in cities, is getting tougher.
Urban unemployment climbed to 6.7%, while rural areas held steady at 3.9%.

What stands out?

The gap between city and village jobs is growing.
On a positive note, more women are stepping into the workforce, with female participation rising to 35.3%, the highest level seen in 2025.
Still, rising urban unemployment means challenges remain for jobseekers, even as India's working population keeps expanding.